When it was never a business to begin with.

One of the problems I have with all the statistics for failed small businesses, entrepreneurial ventures, and startups, is that many of them weren’t really businesses to begin with.

Dreams or ideas, maybe — but not businesses.

How I Define a Business

I don’t have some grand model of what a business should be. There are many books and consultants out there defining that stuff.

But I’ve known a lot of [1] successful entrepreneurs, and all of their ventures had some basic things in common:

• They solved a problem - There was a need, and they came up with a way to fulfill that need. Simple as that. Not every one was earth shattering, or changed the world, but it made something better in some way.
• They brought something unique or special to the marketplace - They utilized their special skills, talents, gifts, and way of looking at the world to make their venture unique. It was an extension of them, and not a direct copy of someone else.
• They had a real business model - Businesses make money. That’s what they do. You can do something as a hobby, but in order to make it a viable business, you have to have a viable business model.

I’m sure you can find examples of where these items were not met. But when people ask me (and I get asked a lot) what makes a successful business, I always come back to these items.

If you stick to them, and are willing to work your ass off, you’ll be successful. Then you can [2] move on to the next thing.

So, don’t let the statistics scare you. There are really only 2 kinds of failed businesses — those that were never businesses in the first place, and those that were never attempted.

The rest? Learning experiences .