Myth no. 4: «It’s easy to make money once the business is off the ground»

It is believed that a business becomes a money-generating machine once it is well oiled…this is true with certain types of businesses or those that are well established, but in reality, it’s not that easy to generate profits from the activities of a business. In theory, you project very profitable results, but then there are all the miscalculated risks, the business failures, and the unforeseen marketing investments.

On a beau essayer d’ajuster la recette, les ingrédients et les paramètres changent constamment et il faut suivre de près la santé financière de son entreprise peu importe son niveau de croissance. On ne peut jamais prendre pour acquis la rentabilité, elle s’exprime comme le résultat d’innombrables petites décisions, de retours potentiels sur des investissements, de timing et de chance parfois. Et chaque année à la publication des états financiers on repars à zéro et on espère faire mieux que la dernière et apprendre de nos expériences. Vous voulez en savoir plus sur la croissance? C’est ici que ça se passe!

Myth no. 5: «The entrepreneur will become rich once business is sold»

We believe that businesses are worth a lot of money right after they are established… some are, but the vast majority… are NOT. It takes years and a lot of profits or high revenue peaks to justify high valuations. A company will never be as valuable as the value perceived by its founder or by the partners who sell their shares… They are the ones who will most often overvalue the company.

The future buyers, however, will more likely evaluate the potential to make money and make a quick return on their investment, as in any commercial transaction. This means they will look for flaws and weaknesses so that they can negotiate and pay the lowest possible price. So, it is in the entrepreneur’s best interest to be patient and focus on the profitability of his business if he wants to get wealthy by selling it.

The value paid for small to medium size business acquisitions are therefore far less than one might imagine, and only a small proportion of entrepreneurs will be multimillionaires following the sale of their business. Moreover, this implies that they must sell before shutting down or going bankrupt. Yet the survival rate of businesses beyond 10 years is on average only 40%.

Bien-sûr, il y aura toujours des histoires de transaction d’entreprises naissantes peu ou pas profitables avec de fortes valorisations dans certains secteurs d’activités, mais ceci demeure l’exception et non la norme (et c’est pour cela qu’on en entend tant parler ). Voici quelques conseils pour voir ce que vous pourriez retirer de la vente de votre entreprise.

Myth no. 6: «Success has a lot to do with luck…»

It is also believed that success in business has a lot to do with luck. It’s true that if the entrepreneur has studied his market carefully, has invested himself heavily to develop his project and has made many sacrifices to achieve his goals… he may have increased his chances for success.

Le succès en affaires n’est pas accidentel ou fondé sur des paramètres externes hors de notre contrôle. Lorsqu’un entrepreneur vit une malchance, il s’organise pour s’en sortir. Lorsqu’il a la chance de faire un bon coup, on le dérobe de son mérite pour dire que c’est grâce au contexte qu’il a réussi. Pourtant, c’est lui qui s’est exposé à l’opportunité et c’est lui qui a su en exploiter le potentiel. Si vous souhaitez en savoir plus, lisez mon article sur les 9 vies de l’entrepreneur.

Now that we’ve brought this whole other perspective on business success to light, you can say to yourself that it doesn’t matter if you’re not profitable after 5 years or if you’re not riding in a limousine — you’re not necessarily on the wrong track. On the contrary, reassure yourself that if you are able to continue your business activities and persevere in complex and difficult conditions, to pursue your mission despite the stress of the financial challenges, you are on the road to success…

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