Instant success can be the worst thing to happen to an entrepreneur. An initial rush of investment money, quick user adoption, or a one-off glowing article in the media might signal a long and successful career — or indicate a bit of beginner’s luck.
Even for an entrepreneur with a killer vision and drive, the odds of long-term sustainability are slim. About half of U.S. companies fail within five years, and only 25% of venture-backed startups manage to stay afloat in the current market.
The failure rate is partly caused by a false sense of security that stems from beginner's luck. Many entrepreneurs try to repaint the same picture over and over to recapture that initial magic. They forget that being an entrepreneur in the long term is about learning from failures. Entrepreneurs must be willing and able to continue to draw an entirely new picture.
I started my own businesses at a very young age. I tried everything from creating my own post office to selling golf balls for extra cash. These were my first attempts at becoming an entrepreneur — it’s always been in my DNA. When I wasn’t doing well at school or in more traditional jobs, my entrepreneurial drive and mindset gave me hope.
Most people who decide to start their own companies do so because they have an innate drive to create, build, and work. Initial success can hinder that determination to keep building and evolving, which is vital to the entrepreneurial spirit.
Luckily, there are ways to ensure that your success goes beyond beginner’s luck. If you've experienced the first taste of success, you should turn your attention to other key efforts for long-term sustainability. Here are three strategies that will help you become a lifelong entrepreneur rather than a flash in the pan:
1. Build a community.
For long-term success, an entrepreneur must be willing to relinquish some control. Give up the notion that you’re going to own 100% of your company. Look at ownership as leading a strong community that will build up your vision instead of taking it away from you.
The key to building a good community is finding people whose vision matches your own and then inspiring their passion. Make sure you have the right responsibilities and ownership structures that foster a commitment to your company's mission statement.
2. Don’t be seduced by cash buckets.
There are a lot of people with a lot of cash willing to invest in budding startups. But if the money you bring in isn’t allocated properly, it could end up costing you more in the long run.
Focus less on the amount of money you can raise. Instead, concentrate on who the investors are and how their funds will be used. Stick with strategic money in the beginning — focus on relevant people who have the tools, connections, and experience that can give you an edge.
3. Get your life in order.
Most employed people spend only half their time on activities they consider important. That said, employees who are the best performers spend 60% of their time on these activities. That little shift in priorities can make a huge difference. Focus on what’s important to you instead of trying to take on everything.
It doesn’t matter how much business savvy you have — if running a company constantly conflicts with the rest of your life, the venture will overwhelm you. It’s crucial to get your priorities in order. You have to be honest from the start about how much time you can afford to sink into a venture.
If you’re serious about your vision and want to bring it to fruition, view entrepreneurship as a journey instead of a destination. Ditch the ego that says everything you do has to be perfect and under your complete control. Instead, trust in a community that will help you make the most of your ideas, find strategic investors, and be honest about how much of yourself you can give to your ideas. It’s only then that you can say "goodbye" to beginner's luck and say "hello" to lifelong entrepreneurship.
Michael Cammarata is the founder of Random Occurrence, a venture capital and private equity firm. He also co-founded Schmidt’s Naturals, one of the world’s fastest-growing wellness brands that has grown from a fledgling startup to a Unilever acquisition in 2017. Recently named the CEO of Neptune Wellness Solutions, Michael is a new breed of unconventional CEO with a personal mission to invest and scale companies globally that will make sustainable innovation and modern wellness solutions accessible to the world.