Starting a new business can be extremely challenging, but if you push through the first few years with passion and dedication, you will succeed. It’s a well-known fact in the entrepreneurial world that 50% of small businesses fail within the first five years. It’s true that this number is intimidating, but there are ways to avoid this fate. You just have to listen to the collective wisdom of those who have succeeded AND your gut. There are important lessons that can be found there.

The first step is the most difficult

New beginnings are never easy which is why it’s essential to start the right way and set a solid foundation for your business. Once you have your perfect idea, you need to know how to shape it and make it a reality.

There are so many things to think about in the process, and they could make or break your business. From assembling a trusting team to finding funding, you need to make sure every part of the puzzle fits perfectly.

For starters, you need a solid business plan. When speaking with investors or lenders they will have different expectations from it, and you need to adjust accordingly. There are many details to consider when you’re just starting out so make sure to focus all your efforts on doing everything right the first time.

Less expensive ways

The first thing you’ll notice when your business starts operating is that your income doesn’t equal your profit. You could easily get carried away by an influx of cash that may seem like a small fortune. However, once you calculate your costs, you’ll see that it will probably take some time for you to reach your break-even point, let alone start making real profit.

That’s why you need to be frugal when starting out; you cannot go buying everything at once or making expensive investments.  Try to find ways to do everything affordably. The bulk of your finances should go toward your central products and services, and everything else can take some cuts.

For example, you don’t need to spend a fortune on decorating your office or getting tons of supplies no one actually uses.

Don’t let your business consume your life

Trying to maintain a new business is like trying to keep a baby alive and well. It takes a lot of hard work, sacrifice, and dedication. That’s why many entrepreneurs get carried away and sucked in by the everyday obligations of their new business.

You need to be extra careful and not let this happen to you. It’s essential to carve some time out for yourself and your family. Your business is important, but that doesn’t mean you should neglect other aspects of your life.

A study conducted by the Harvard Business Review has found that those entrepreneurs who are taken by “obsessive passion,” as opposed to the milder “harmonious passion” for their job, were much more likely to experience burnout.  It’s essential to find a work-life balance to succeed yet remain sane.

Plan for sustainable growth

The keyword here is “sustainable.” It’s great if your business starts with a bang but beware of making rash decisions.  One of the most common mistakes new business owners make is not giving their future much thought and getting carried away by early success. It’s okay to get excited, but that shouldn’t deter you from making long-term, sustainable plans.

Slow and steady progress is much better than explosive growth because the latter is unpredictable and can lead to a fatal crash. On the other hand, if you take time to develop a solid plan, it will take you through many years successfully and help you navigate your way out of rough patches.

Perseverance is key

Just like it’s extremely easy to get carried away by success, it can be quite discouraging if your business does not immediately flourish. You need to remember that failure is part of success, and if you stay open-minded and learn something, it isn’t a failure at all.

Instead of giving up, focus on any negatives and what you can do to eliminate them or turn them around. Your business is your child, and you can get quite emotional about it, but it’s vital to keep a cool head and examine the problems from a rational point of view.

When you look at some of the most successful large companies, such as Amazon and Uber, you probably think that their path to success was smooth, but that is far from the truth. Many of these companies were once on the brink of failure. They persevered and now they are staples in their respective industries.