Did you know 2024 is the Year of the Dragon? In Chinese astrology, the Dragon stands as a symbol of power, visionary leadership, and the courage to seize opportunities to innovate and excel. This dynamic energy is particularly valuable in today’s business landscape, where embracing challenges and innovating against fear can distinguish successful entrepreneurs from the rest.
In today’s marketplace, starting a business is no small feat. In fact, 90% of startups fail, with an average 1 in 5 startups failing in just the first year. Failure is most common for startups during years two through five. During this make or break period, 70% of startups fail.
These statistics underscore the harsh realities of entrepreneurship, which is as demanding as it is rewarding. The early stages of a startup are fraught with challenges, not just in terms of business operations but also in managing the psychological weight of leadership. The person who starts the business often bears the brunt of the pressure — balancing the hopes and livelihoods of the team they’ve assembled with the responsibility of steering the company through turbulent times.
Many entrepreneurs are drawn to start their own businesses because they excel at something specific — be it technology, sales, or cooking — and they identify a market opportunity. Yet, excelling in a skill and managing a business are profoundly different challenges. In his book “E-Myth,” Michael Gerber emphasizes the importance of working on the business rather than just in it, advising entrepreneurs to rise above day-to-day operations and focus on strategic growth.
However, it’s common for entrepreneurs to retreat to their comfort zones during times of stress, focusing on familiar tasks instead of what’s strategically best for the company. In the early years of my first company, I often retreated to what I was good at — sales — to avoid facing the more daunting aspects of business management. This was driven by a fear of failure, failing not just myself but my team. However, over time, I learned that acknowledging and confronting these fears could transform my vulnerabilities into strengths.
Admitting fear and discussing it openly can demystify and diminish its power over decision-making — which can be transformative for businesses. Data shows that founders who have previously built successful companies have a 30% chance of succeeding again, highlighting the value of experience and the learned ability to manage fear and failure.
Understanding the high risks associated with entrepreneurship and embracing the Dragon’s fearless spirit is key to navigating the complex challenges of starting and sustaining a business. With that said, I encourage all entrepreneurs to embody the Dragon’s qualities: to be visionary, to seize opportunities with boldness, and to leverage fear in order to innovate continuously, ensuring that each step, even if taken in fear, is a step towards lasting achievement and success.
