Why Do Some Entrepreneurs Fail While Others Succeed?

(By Gil Gerretsen) Have you ever wondered what makes some entrepreneurs more likely to succeed than others? At the core, rising stars in business achieve their success through a growth mindset closely coupled to being quick learners who are able to adapt to changing conditions. As I have mentored accomplished entrepreneurs over the last 45 years, here's a synopsis of what stands out about those who achieved great things.

Their Mindset: Rising stars think of challenges as opportunities rather than obstacles. They have a zeal for continuous improvement fueled by their belief that they can reach their goals through hard work and good strategies. They are not afraid of challenging the status quo.

Their Presence: Even at the beginning of their business launch, rising stars exuded confidence. They have an almost uncanny ability to quickly influence others without the need for any politicking. They build strong relationships through empathy supported by a strong moral code that inspires trust from other people. Their integrity matters, which means always focusing on what's right.

Their Decisiveness: Rising stars in business are skilled at analyzing situations (often with wise counsel), considering options, and then making informed decisions. They have the ability to manage their emotions effectively, which is crucial for navigating complex situations.

Their Drive: Rising stars have a strong internal need to make a difference. They set challenging goals and deliver exceptional outcomes. They proactively seek out projects and roles that push them beyond their comfort zone, allowing them to develop new skills and prove their potential.

Their Leadership: Entrepreneurs who rise rapidly actively seek and respond to feedback, recognize areas for improvement, and constantly look for ways to refine their approach. They understand the importance of delegation so they can build internal and external teams that foster collaboration and a positive work environment.

Their Networking: Almost universally, the most accomplished entrepreneurs build relationships with colleagues, industry peers, and leaders who open doors to new opportunities and fosters a supportive network.

Their Advisors: This is one of the most important distinctives of all. Rising stars avoid the risk of costly errors by seeking out wise counsel from others. They have an almost insatiable interest in continuous learning, both formal (courses, certifications) and informal (mentorship, self-study), to expand their skillset and stay updated on industry trends. They particularly have a strong desire to seek guidance from experienced professionals who provide valuable insights, advice, and access to a wider network. Early on, they often join a cohort or peer group of some kind and then later seek out skilled mentors who provide 1-1 guidance on key business matters (i.e., operations, finance, manpower, marketing).

Thinking Back: As I wrote this, I looked back to when I participated in my first business venture at the age of 16. I had four experienced advisors who taught me the skills I needed and encouraged me along the way. That set the stage for my entire business career as I ventured into turnaround work and then the launch of my own businesses. For over 50 years, I have had at least one personal business mentor, and often two or three. Most were paid for that role because they helped me earn more profits.

Why? It's because they had experience I lacked or they could see things in a way that I couldn't. I learned early on that there is great risk in going things alone - living in the proverbial ivory tower. I can now see many critical turning points emerging from these crucial mentoring relationships and conversations. When faced with a new business plateau or challenge, it was comforting to know that I was not alone. It was even better to talks a complex puzzle through with another person who could see things from a different perspective or who had prior experience with a similar challenge.

One of the big risks for ambitious entrepreneurs and is the danger of gradually believing your own press releases. We all need to keep a positive attitude and expectations but without an genuine counterbalance, we may become blind to relevant risks or new opportunities. Don’t be so prideful or independent minded that you start thinking running things past another savvy person is beneath you or too costly for you.

I have observed many high potential people who always tried to go it alone. For a while, they often did fine, but eventually they made a very costly error and sometimes even lost it all. Those who cultivated healthy advisory relationships consistently had a better track record. They grew their business faster, easier, and faced far less risk. When they encountered a business plateau or growth ceiling, they were able to bust through faster and more efficiently.

So, what's my bottom line lesson? Whether you are just getting started with your business, have been in business for a while, or even planning to exit soon, you should always work with 1-1 mentors who are comfortable helping you think and will challenge your current ideas or behaviors. They will be the fuel for your rocket.

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