We all have heard the terms luck. Some of you entrepreneurs out there have heard people say that you have succeeded due to luck. So what is luck? Luck is often perceived as something that is beyond the control of a business.
This is just one perspective.
However, according to McDonald’s CEO Ray Kroc, “the more you sweat, the luckier you get,” implying that one can actively control their luck.
Both perspectives are true. In an era of a fast volatile market, luck does influence business outcomes. Initiating a startup simultaneously with a competition, for instance, may rely on luck if it will be a success or failure.
A well-crafted business plan aims to reduce dependence on luck. A sound concept, supported by thorough market research and robust financial planning, enables a startup to navigate market uncertainties.
An effective plan outlines a strategic path in volatile markets, shields against the unforeseen, and equips the company to handle contingencies.
So when you are starting your new business venture, you can shape your luck by proper planning. In project management, there is a saying that every minute you spend on planning, you save 10 minutes on executing.
Furthermore, a thoughtfully developed plan can position a company to capitalize on favorable market conditions. In essence, what may appear as luck often stems from strategic planning.
For example, the case of 3M Post-it Notes. While the discovery of reusable glue was accidental, it was business strategy that transformed the fortunate finding into a commercial triumph. You need to find what the customer desires and then connect the product with the customer. In the case of post it notes, this is what happened.
Given the number of variables to consider, the survival of a start-up is likely influenced by luck. However, a well-crafted plan minimizes the reliance on luck for a company’s success.
Also, when you are looking at it from a social standpoint people often see successful entrepreneurs are lucky. But this perception also negates the fact that the amount of hard work they put into getting their start-up to work. Please don’t see the restless nights. The hours an entrepreneur puts into their business. Especially, when you start from scratch.
Moving Forward
It is a known fact that small businesses outnumber large corporate giants.
Most of these businesses remain small-scale, and they never surpass the owner’s scope—they start and remain compact. In the United States, over 99 percent of companies have fewer than 500 employees. In 2012, there were nearly 5 million small businesses with fewer than 49 employees, in comparison only 6,000 companies with over 250 employees.
Aspirations, or the lack thereof, play a crucial role in small-scale enterprises. Many owners find contentment in the lifestyle afforded by their business and have no inclination for expansion.
So why small businesses do not want to grow?
The primary barrier to growth is often financial. Access to capital is essential for growth, and it is challenging and costly for small businesses. Additionally, the risk of unlimited liability, jeopardizing personal assets like the family home in case of business failure, is a barrier for many from taking the step forward into growth.
And if you want to know how to manage your risk as a small business, please check out my previous video. I will put the link in the description.
As I explained in my previous video, entrepreneurs are defined by their willingness to take risk. Aspiring business owners who are looking for growth must have the courage to take the crucial second step. This is hiring the first non-family member for many small business owners, marking the commencement of acquiring valuable leadership and management skills. Scaling the business depends on managing people, systems, and processes. In my own humble opinion, there is no such thing as luck. It is about problem solving and acting or taking action to solve those problems. Now if you solve enough problems, your small business will eventually succeed.
Now for example, you don’t have enough customers, what do you do? You invest your time in marketing, it could be local events, it could be online marketing, it could even be a simple as distributing flyers in your community. This will drive customer traffic to your business.
Yes luck can be a factor but you can increase your chances by being active and taking action. This concludes our article. And please subscribe to my channel. And let me know as a small business owner what were the issues that you faced when you started your first venture. Please leave your comments below. Until next time cheers!