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HOW TO BEAT FAILURE IN BUSINESS

Posted by on Oct 11, 2009 in Business Management | 7 comments

During countless business seminars that I’ve conducted since 2003, one of the most common concerns of people in starting a business is about the risks involved and the fear of failing. A very valid concern indeed, one which to the inexperienced is incredibly intimidating and very limiting to a person’s full potential.

So in this article I’m going to explain in very practical terms how entrepreneurs like me beat failure every single time. Let me take you now to one of my seminars and I want you to imagine that I’m talking directly to you with a calm, soothing, and handsome voice.

“My friend, let’s talk about why you are afraid of failing, (Tell me if you can relate)

  •       Is it because you are afraid of losing the money that you worked very hard to save up for?
  •       Are you afraid of all the horror stories that your friends tell you about business?
  •       Is it because you have tried it yourself and almost lost everything you’ve got?
  •       Is it something else?

If you answered yes to one or even all of these questions, let me tell you now that you are not alone. Millions of people all over the world feel exactly the same way. Do you know that 95% of start up businesses fail in the first 5 years, and then for those who survive, another 95% may also end up failing in the next 5 years? (This isn’t exactly encouraging I know but continue reading as I assure you it’s worth your time).

Let me tell you the number one reason why the 95% fail, it’s because they’ve never really discovered the true secret of an Entrepreneur. And that secret is not talent, it’s not  just connections or customers, and it’s definitely not about capital or the lack thereof…It’s something far more basic — It’s about knowing how to totally eliminate the  risks right from the start.

Repeat after me:You can never fail if you have nothing to lose in the first place.

Now let me explain in very practical terms what I mean by this (Please feel free to write down some notes). Okay, let’s first quantify what failure really means. 99% of failure in business is about losing the money you put in, correct? And the 1% is about losing face or a deflated ego. So let’s talk about the 99% or losing money. Many, many times people put way too much emphasis in having start up capital first (I discussed why this is wrong in my article in Manila Bulletin last Sept 23 – How to Make Money with Zero Capital). And the problem is, most of the time people put in capital that they can never really afford to lose.

So what happens, if the business closes up? They’ve lost the money and most of the time, end up devastated. Is there a better way you ask? Yes and it’s far more simple than you think.

Before you start any business, ask yourself if there is a way to start it without putting in any money first? This is called starting with Zero Capital. If your answer is “Yes” then proceed with your money making venture, and if the business closes up, did you really fail? Not at all, you might experience a deflated ego or hurt pride, but that is really nothing if you think about it. Again, you can never fail if you have nothing to lose to begin with.

Now, if the business really needs start-up capital, like a coffee shop or a grocery where you need to invest some money into it, then ask yourself 2 simple questions:

1.)    How much money am I willing to put into this business?; and

2.)    Am I willing to lose this money if ever the business does not succeed?

Now if you come up with a peso figure to the first question and say “yes” to the second question, then congratulations, right there and then you have beaten failure yet again.

Now if you answered “No” to the second question then go back to question number 1, ask yourself how much money are you willing to put into this business that you are willing to lose.  Repeat this as many times as possible until you get the answer.

So now you ask— if this is the only amount that I will put in, then I can’t start the business yet…what do I do? Should I get a loan to cover the difference? No, not even close, the first answer I’ll give you is simple and uses common sense – If you cannot afford it, then scale down the business that you want to get into. Just learn to modify your plans a little bit so that it fits your budget.

Okay, so that answer is not going to stop you right?  In your mind, you adamantly say “ I want to put up a coffee shop even if I cannot afford it”.  You are head strong and stubborn I’ll give you that, but I will also tell you that’s the spirit and here’s what you should do:

Learn how to get Capital without getting into Debt. This is called learning how to raise capital using some technical know.

Is that even possible? Of course it is. I teach this in my Capital Raising and Cash Flow Management Class where I share what I have done successfully and it’s not just something you read from a book. Life has taught me well and the lesson I am sharing with you is a jewel that I picked up a few years back.

Now I’m not yet finished with our one on one discussion. This is just the start of our journey together, what I’d like you to do now is to continue reading my future articles in Manila Bulletin every Sunday in the Classifieds section (usually C or D section). If you have missed my previous articles, you can always come back here and leave a comment. Talk soon and more success to you.

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7 Comments

Join the conversation and post a comment.

  1. Ivory Parks

    Only a smiling visitor here to share the love (:, btw great style .

  2. Lynwood Beilstein

    I think other web site proprietors should take this site as an model, very clean and magnificent user genial style and design, as well as the content. You are an expert in this topic!

  3. Alan Riner

    Loving the information on this internet site , you have done great job on the articles .

  4. Grace Lee

    I thought your column is only on every wednesday of the Manila Bulletin. Okay, I will check out the sunday issues… thanks for the great one on one talk!!! 😀

  5. Ron Domasig

    I read only the last Wednesday issue of your articles. And that was convincing. A wake up callfor me to find your blogs. Great. :)

  6. Tet Sumulong

    Hi Sir,
    I can’t seem to find a schedule for your Capital raising and Cashflow management class.

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