Highly educated entrepreneurs are more successful and have larger businesses than business founders with little education, according to research. This is backed up by The Institute for Competitiveness and Prosperity report which states “The more education business owners have, the less likely they are to have to close a business.”
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When you also bear in mind that 75% of the Fortune 500’s top 20 CEOs have an MBA or similar graduate degree, you can see just how important education and knowledge are for entrepreneurial success. So, if you’re keen to maximize your business’s growth, make sure you’re constantly pursuing new knowledge.
Staying Ahead In Your Industry
Industry trends, laws, guidelines, customer preferences, and competition constantly change. New technologies are also regularly being launched and this is why you must educate yourself.
By keeping on top of all these things, you’ll stay competitive and relevant in your chosen field. Bharath Yadla of Workato says that “Staying relevant is key to a resilient business always, not just in a tight economy.” She advises doing this by out-inventing yourself and keeping in tune with your customers’ needs.
You’ll also ensure that you don’t fall foul of the law and end up being fined – something that could tarnish your reputation and prevent you from following through with your business growth strategies.
Former U.S. Deputy Attorney General Paul McNulty infamously said “The cost of non-compliance is great. If you think compliance is expensive, try non-compliance.” And this is just as relevant today as it was when he first said it. When you know about relevant changes, they give you the chance to identify new opportunities that could lead to business growth.
For example, by being one of the first businesses to adopt a new online payment platform, you can implement clever marketing strategies that show you give your customers options and that you're a unique business and aspiring leader.
Gaining Crucial Knowledge for Entrepreneurial Success
Staying on top of the latest developments in your industry is easy and there are lots of ways you can do this. Some knowledge-gaining methods to use include:
- Social media
- Online news sites & industry-specific sites
- Webinars
- Online course
- Academic journals
- Professional associations
- Industry conferences
- Leaders in your industry
- Collaborations & partnerships with other organizations
Planning Your Business’s Growth
Business DIT reports that 71% of companies with a business plan are fast-growing. However, you can only plan your business’s growth and put strategies into place when you have knowledge of how to expand a business.
Some of the most important things to get your head around are financial management, market research, logistics, operations, marketing, sales, legal and regulatory requirements, and risk management.
As you can see, you need a lot of knowledge to produce a business growth plan that’s realistic, inspiring, and likely to be effective. To ensure that you have all the skills required to come up with a business growth plan that will drive your company forward, you can learn from sources, including online courses, workshops, industry conferences, and mentors. You may also want to hire a consulting service to help you.
They’ll have all the knowledge and expertise to help you succeed with your business plan. Don’t be afraid to rely on a consulting service as they’re in high demand and lots of startups and established companies use them. In just a year, they’ve grown by 2.6% and there’s now more than 900,000 of them just in the US, according to IBIS World.
Entrepreneurial Success and Personal Growth
Personal growth plays a vital role in business growth. When you’re motivated to develop yourself, you’ll want to work harder and achieve greater success in other areas of your life, including your business.
Entrepreneur and digital marketer Suttida Yang says that focusing on her personal growth helped her to grow her business by 300% in just 12 months. “As I became more self-aware, I also started seeing how my direct nature could be interpreted and infused more of my soft skills into every business setting,” she says. If you’re wondering how to develop yourself personally, you’ll find that both formal and informal learning is the way to go.
The Value and Importance of Scientific Education
You might think that because your online business isn’t in the science sector you don’t need to worry about it, but this isn’t true. Science plays a leading role in innovation and is particularly critical in developments in technology that you more than likely rely on every day.
For example, if you’re one of the 73% of businesses that Forbes reports use AI-powered chatbots to communicate with customers, scientific algorithms, statistical models, and language processing are just some of the sciences involved in this technology.
It’s worth focusing on your scientific knowledge too as it will help you to make data-driven decisions. Mckinsey Global Institute reports that businesses that make data-driven decisions are 23 times more likely to boost their customer base. Studying science can also improve your problem-solving skills.
Common business problems include retaining employees, inflation, supply chain disruptions, and poor cash flow. Tony Robbins from Robbins Research International points out that it’s important to “Identify your problems, but give your power and energy to solutions.”
With this in mind, the scientific knowledge you gain can help you to solve any problem. Proprep, for example, can teach you how to solve the problem of AgBr molar mass. To work this out, the number of atoms in molecules must be calculated in three parts.
This solution then leads you to conclude what the molar mass of AgBr is. This multi-step approach to problem-solving is the same principle that can be applied to your business’s problems so you can fully solve any issue.
Informal Education
The study Informal Learning and Entrepreneurial Success: A Longitudinal Study of Deliberate Practice among Small Business Owners found that German entrepreneurs who participated in informal education were more successful than those who didn’t do any informal learning.
Online communities, such as Reddit, are particularly helpful for entrepreneurs as they connect them with thousands of other entrepreneurs across the globe. A study titled Entrepreneurial Learning in Online Communities found that when entrepreneurs use online communities they get involved in five types of conversation that can facilitate their informal education:
- Lessons learned
- Advice-seeking
- Reflection
- Call to share
- Tips, tricks, and resources
If you’ve tried online communities and haven’t gotten on with them or want to use another informal education method as well, consider listening to podcasts. One of the biggest benefits of learning via a podcast is that you can listen to it at the same time as doing other work for your business.
“Why'd it take me 10 years to realize I could listen to a podcast or audiobook and code at the same time without losing much productivity or comprehension?” Cortland Allen, the founder of Indie Hackers says.
There are also podcasts available in every niche imaginable, so if you want to improve your marketing, learn how to build an e-commerce business from scratch, or build a better relationship with your customers, there’s a podcast out there for you.
The Emily and Blair Podcast is a good place to start as you’ll discover up-to-date tips and tricks for managing your online business. You may also want to delve into some other recommended podcasts for entrepreneurs. 99 Signals and Audible suggest:
- Rework by Jason Fried and David Heinemeier Hansson
- The Tim Ferriss Show
- The GaryVee Audio Experience
- Masters of Scale by Reid Hoffman
- Morning Brew with Alex Lieberman
- Jordan Pendleton's R.E.A.L
- That Will Never Work by Marc Randolph
- Hello Seven Podcast with Rachel Rodgers
- The Startup Playbook Podcast by Rohit Bhargava
Learning From Mistakes
Everyone makes mistakes and entrepreneurs are no different. In fact, failures and mistakes are learning opportunities that can help you grow your business in the long run. Chrissa McFarlene, the CEO and founder of Patientory says that failing to secure venture funding at the beginning of her journey taught her big things.
“I believe that putting things into perspective is the main lesson I have learned. Now, I am a leader in this blockchain technology space, inspiring other women to pave their own paths,” she says. Meanwhile, Meirav Oren, the Co-founder and CEO of Versatile says that a failed demo turned into a positive learning experience.
“I remember going from a sense of complete failure to “we will recover and grow stronger” in a few hours. I realized that failure means learning something, and we learned a lot that day. We also ended up winning that account and the rest is history.”
Education and knowledge are two of the most important things you should focus to achieve entrepreneurial success online. By actively and passively expanding your knowledge and keeping an eye on the latest developments in the business world, you can develop and grow yourself and your startup. To do this, make sure you utilize all the tools that are on offer, including books, journals, and mentors.
