Did you know that 62% of US billionaires are self-made?
Becoming an entrepreneur is an exciting prospect. If you play your cards right, you can enjoy incredible success, often far beyond what you could achieve in an employed position.
However, achieving business success as an entrepreneur isn’t a guarantee. Statistics also show that 22.5% of ventures go out of business within the first year of operation.
This begs the question, what is it that defines successful entrepreneurs from those who fail? Is it luck? Or hard work?
In this article, we look at some of the available research on luck and what goes into business success.
Ready to find out what drives business success? Stay with us as we investigate the role of luck in business success, as well as how to set the stage for luck in your own ventures.
Luck and Business Success: Is It a Factor?
Many successful entrepreneurs will tell you that luck in business success is a significant factor. However, the degree to which it plays a role shifts depending on who you ask.
Some might say business success is 10% luck and 90% hard work. Others will say the opposite.
It’s hard to deny that luck is a part of business success. However, how big is this part? And is there any way you can increase your lucky odds?
What the Research Says
A study published in 2018 examining the impact of luck vs. talent in success found that luck has significant importance. The research revealed that although a skill and talent level is needed in most instances, rarely are the most talented individuals the most successful.
Instead, individuals with a median level of talent who enjoyed what we know as “luck” experienced higher success.
Another earlier study also pinpointed luck as a common denominator in business success. According to this study, luck accounts for up to 30% of business success.
Another paper published by Cornel University shows similar findings. It outlines how, while Western culture places a high value on effort, talent, and risk-taking, a large portion of success can also be attributed to luck and random chance.
The Four Kinds of Luck
As we have uncovered, luck does play a role in business success. You can enhance your chance in experiencing luck by learning more about the four different types of luck.
The first and most basic luck is a pure chance, what we know as dumb luck or blind luck. It is accidental and happens with no effort. Winning the lottery is an example of the luck of pure chance.
The second type of luck in business success comes about because of action. Because you are moving forward, you stumble across something. This would not have happened if you were sitting still. If you are active in your market and do things like networking, you will likely encounter more opportunities.
Luck by Discernment
If you can’t see a lucky break, you won’t be able to take advantage of it. This is where luck by discernment comes in.
If you have the perspective to recognize good fortune, you are in a position to take advantage of it. By recognizing and grasping significance, you can create unique opportunities for your business. For instance, you might be able to spot a need in the market that competitors haven’t paid attention to. By filling it, you would be able to gain a significant advantage.
The final type of luck in business success is creative luck. Creative luck comes about when you target the other types of luck. Instead of stagnating, you take action. You also direct this action towards opportunities that you have discerned. Through this, you are likely to come across even more areas of opportunity.
Setting the Stage for Luck In Business Success
There are a variety of ways you can set the stage for luck in business success. By adjusting your mindset, taking action, being a perpetual learner, and evolving, you can increase your chances of opportunity.
Various experiments and studies have shown that one’s mindset can influence luck. One 10-year study found that individuals can “create” luck through four principles. These are noticing areas of opportunity, listening to one’s intuition, holding positive expectations, and having a resilient attitude.
Older research done in 1993 revealed an interesting pattern in “lucky” versus “unlucky” individuals. Through various experiments, the study showed that lucky individuals were more likely to notice opportunity. Individuals who identified as unlucky, on the other hand, displayed higher levels of anxiety, which blinded them to opportunities.
These findings suggest that we increase the odds of business success by practicing positive thinking and learning to tap into intuitive thinking and developing resilience.
Many experts also recommend practicing positive reinforcement through recognizing our current fortunes.
Besides tending to your mindset, you also need to take action. As mentioned under “hustle luck,” it’s important to get into motion so you can uncover opportunities.
Put in the hard work, grind it out, and get things started. Focus on networking, build a reputation for yourself, and sooner or later, you’ll probably find lady luck knocking at your door.
Engaging in perpetual learning strengthens your critical thinking and synthesis skills. This, in turn, sets you up for enhanced luck through discernment.
The more you know and the wider your frame of reference, the more likely you will spot an opportunity.
If you adopt a mindset of perpetual learning, failures become learning opportunities. Analyze and move forward, and you may find that your recent failure is the key to uncovering an opportunity in the future.
Another way to set the stage for luck in business success is to make sure you are always evolving to meet market changes.
If you keep your finger on the pulse and maintain an open-minded approach, you can adjust your business model to meet demand. This is a recipe for enhanced opportunity and market share.
Other Common Factors Behind Success in Business
Research has also shown that successful business people display several common qualities.
One study reveals that experience is a large contributing factor to success in business.
This makes absolute sense, as experienced and successful businesspeople have already learned from previous mistakes. They will already have an understanding of what pitfalls to avoid. They will also have a better understanding of business law.
One of the papers we mentioned earlier also showed that education and a high work ethic significantly contributed to business success.
What’s more, successful business owners typically have a clear vision, are passionate about what they do, and are determined. Interestingly, one study that outlines this also lists having “a favorable perception of the business environment” as a successful entrepreneur’s display.
This loops back around to the idea that a positive mental outlook can contribute to business success.
Safeguard Your Business Success Through Savvy Legal Planning
From looking at the available research on luck in business success, we can safely say a few key commonalities that successful entrepreneurs have. These are a positive and receptive mindset, intuitive thinking, experience, vision, passion, education, and a high work ethic.
But there is another external factor that you should not overlook. This is having a professional legal team at your disposal.
Most of the articles on tips for business success will tell you that having a watertight legal structure is crucial. Hiring a legal expert to take care of your business law matters is essential for avoiding costly legal issues.
Have you yet to hire a business attorney? If so, the time to do so is now. Contact us today for all of your business law needs in Florida.