While it may seem that some entrepreneurs are destined to succeed, a new study confirms that hard work and experience play a key role. In fact, researchers found that the most successful entrepreneurs had done it all before.
As detailed by Inc.com, the study used business records to examine the successes and failures of 2.8 million retail entrepreneurs in Texas over a 22-year period. Overall, most retailers struggled to stay in business longer than 24 months. Those with the most success had previously owed a business. More specifically, the study revealed that serial entrepreneurs experienced more success their second, third or fourth time around, remaining open longer with each new venture.
Interestingly, the experience of forming a business entity transferred across industries. For instance, the owner of a coffee shop who subsequently opened a dog grooming business was still more likely to succeed, even though the two businesses are not related.
“If you are an entrepreneur, you want to continue to gain experience as an entrepreneur,” study author and Stanford Graduate School of Business Professor Kathryn Shaw stated. “It’s really a long-term commitment. Learning from that experience can shape your future.”
The study highlights there is a lot to learn about running a successful business. For those hoping to make it big on the first try, surrounding yourself with seasoned professionals is one sure way to increase the odds. From accountants to lawyers to marketers, partnering with experts in their field can help entrepreneurs avoid rookie mistakes and put their businesses in the best position to succeed.
For entrepreneurs looking to try again, the study is encouraging because it suggests that a failed business venture can actually be an asset. So rather than dwelling on your mistakes, use them to hone your craft the next time around.
In our practice, we have represented a number of entrepreneurs who had previous experiences as entrepreneurs. An important advantage that we observed they had over “rookie” entrepreneurs was the life lessons from the prior efforts: what worked, what didn’t work and their own strengths and weaknesses. For tips on increasing the success of your new venture, please check out “What Can Start-ups Learn from Google? Five Key Tips” and “Five Top Legal Tips for Startups.“
Key provisions in your contracts, including those relating to indemnification, insurance, and defense, are essential to contract risk management. While sometimes considered “boilerplate,” these provisions play a pivotal role when determining which party is responsible for certain costs and liabilities. They must always be negotiated and drafted carefully. Indemnification Clauses Businesses should never overlook the […]
Portability of estate and gift tax enables a surviving spouse to inherit any unused portion of their deceased spouse’s federal estate and gift tax exemption. So, if one spouse doesn’t utilize their full exemption, the surviving spouse can effectively double their exemption amount with regard to estate tax liability. For married couples, portability offers a […]
Pet Trusts in New Jersey and New York: A Practical Estate Planning Tool
For many of us, pets are more than companions—they are members of the family. Yet they are often overlooked or inadequately provided for when it comes to estate planning. A pet trust offers a legally enforceable way to ensure that your animal continues to receive proper care if you become incapacitated or pass away. As […]
For many New Jersey business owners, a closely held company represents decades of work, financial investment, and personal sacrifice. Trusts in business succession planning are one of the most effective tools for protecting that value, allowing founders to control how and when the business passes to the next generation while reducing the risk of disputes, […]
Read Before You Sign: IT Contract Pitfalls Every NJ Business Should Know
In today’s digital economy, New Jersey businesses of all sizes rely heavily on technology vendors, software providers, cloud platforms, and managed IT services. Whether your company is purchasing software, migrating data to the cloud, engaging a cybersecurity consultant, or entering into a long-term managed services agreement, a careful IT contract review can have significant operational, […]
Non-disclosure agreements (NDAs) remain a critical tool for protecting sensitive business information. However, New York NDA requirements have evolved, and businesses must ensure these agreements are carefully drafted to remain enforceable. In a competitive market like New York City, NDAs are commonly used to protect proprietary information, client relationships, and strategic plans. At the same […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
