Going into business for yourself is a bold move. There are a lot of risks when you jump into the entrepreneurial pool without a floatation device
Sure, making money is a vital aspect of business, but it isn’t always the first goal. In fact, many huge companies did not become “profitable” for a while after they began.
Did you know? Some of the biggest companies you use every day were not profitable for a significant number of years. Companies like Lyft, Dropbox, Airbnb, and others fell short economically, but were still considered successful in other ways.
Just like major businesses don’t always define their success by dollars, smaller businesses should often focus on other versions of success as they mature. Here are three reasons why business success isn’t always tied to economics-
Reason #1. Growth potential: Your idea may be so innovative that it needs time to mature in the marketplace. Whether it’s creating brand awareness, developing new technologies, or another factor, it may take time to educate the public about the goods or services you offer. In this case, your growth is likely a greater indicator of your success rather than profits.
Reason #2. Investments in the future: If you’re bootstrapping your business, you’re likely going to reinvest your earnings as you grow. Not every business has startup costs covered from the beginning. Many businesses continue to make investments in themselves for years to get where they need to be to be self-sustaining. In this case, simply turning enough profit to reinvest back into the business is a sure sign of success.
Reason #3. Knowledge is priceless: Every business owner earns their own version of an MBA. Building a business and weathering the ups and downs teaches lessons that you’ll never forget. In fact, some of the wealthiest people in the world failed multiple times before they found financial success. The knowledge they gained along the way was its own version of success. What you learn is taken with you throughout your business journey and builds on itself like compound interest.
It's natural to measure your business success by whether your books are in the red or the black, but success isn’t always tied to economics. Be sure you find more than one way to define your unique idea of business success as your business grows and changes.