Understanding the Importance of an Entrepreneurial Legacy
Entrepreneurship is not simply a dollars game. It is about dreaming, creating, celebrating and overcoming. It's about building a business that has a real impact for good on the world. That's why we do everything we can to preserve and protect the legacy of entrepreneurs who decide to become part of the Pluribus family.
The path of an entrepreneur isn't easy. Within the Pluribus portfolio, you'll find businesses that have battled successfully to profitability. Although some started in simple circumstances — such as Social5, which began in a vacant bridal shop — these businesses developed new technologies, new processes and new products that had a disruptive impact on the marketplace. Their founders found a way to do what many business owners cannot.
Here are some sobering statistics about entrepreneurship that may help frame our respect for business owners and the reason why we believe so strongly in preserving their legacy.
20% of small businesses fail in the first year
30% will have failed within the second year
50% will have failed by the third year
70% will have failed by the tenth year
Consider those numbers for a moment. After a decade in business, only 3 out of those 10 inspired entrepreneurs were able to ensure their company achieved a true measure of success. The rest didn't make it. Why? Let's spend a moment on that.
Why do Businesses Fail?
No entrepreneur plans to fail. They don't invest time, energy and capital into a business venture that they believe will flounder in the marketplace and lead to an unremarkable end. Instead, entrepreneurs have every intention of building something to last. They may build toward an exit through a company like Pluribus Technologies, which can take their legacy and make it larger.
When a business fails, it is generally attributable to weaknesses such as these. Keep in mind, this is not a comprehensive list. It is a common list. Other factors such as inadequate sales acquisition or marketing can play a role. So can control-minded leadership styles, where the founder tries desperately to do everything. But here are three common failings we see.
Ineffective Business Plans: Business plans are critical to the success of any new company. An ineffective business plan doesn't map out how the owner will master the vital stages of a business cycle. There will be no plan to achieve growth.
Poor Customer Service: Business owners must ensure they fall in love with their customers and not their products or services. When a company does not turn its customers into raving fans, failure is always an option.
Bad Hiring Practices: Perhaps this should have come before "poor customer service," because hiring the wrong people leads to wrong outcomes. Poor retention practices, low pay and ineffective benefits or incentives can also lead to failure.
Why Legacy Matters
The good news is that not every business venture fails. According to the SBA, small businesses have gained 5.5 million jobs in the four quarters following mid-2020. That's a lot of new entrepreneurial ventures getting off the ground and many will achieve a measure of success. In many cases, entrepreneurs have reached a point where they can either take their company to the next level or figure out a different plan of succession. And these entrepreneurs need to understand their company did not fail. Their legacy is at stake.
This is where a company like Pluribus Technologies comes in. The business leaders we work with — the entrepreneurs who have nurtured their companies to profitability against the odds — want to see their legacy endure. We ensure that. And we help that legacy to grow. We bring profitable technology companies into the Pluribus portfolio and provide cross-selling and cross-promotional opportunities that can move a business toward something bigger.
If you're an entrepreneur who has built a successful business but wants to see it handed off to someone who can take care of it, help it grow, and solidify your legacy, this is our area of specialty. Contact us today at email@example.com.