There are basically 4 factors that are necessary for business success: a good idea, sufficient capital to start up, hard work, and luck. Which factor most influences the outcome of start-ups? It depends on who you ask. There’s a lot of research on the subject and experts don’t agree on the answer. I would argue that it goes without saying you need an idea, money, and effort, but the determining factor often is luck. Let me explain.
What the experts say about the importance of luck
Lefty Gomez, an all-star pitcher for the New York Yankees in the 1930’s, said “I’d rather be lucky than good.” There is something to this.
Various studies have claimed that luck is very important for success. For example, a professor at the University College of London attributes career success to 55% luck and only 45% talent and effort. A recent study found that luck and hard work were about 50/50. Whatever percentage you favor, the importance of luck can’t be ignored.
So, being lucky won’t help if you don’t have a solid business footing, with an idea, capital, and hard work. But having an idea, capital, and hard work may not be enough. The good news is that luck can be viewed in different ways; it doesn’t have to mean hitting the jackpot and, what’s more, you may be able to make your own luck.
Aspects of luck
When you see the word “luck,” you may simply think in terms of hitting the lottery. But luck can be perceived in a number of ways.
Good timing. You’ve heard the expression about being in the right place at the right time. That’s good timing…a form of luck for businesses. Tobias Lutke, who started Shopify, said his success is 90% luck because of good timing. “This is not the kind of company that could have been started two years later.”
Good connections. Winning the so-called birth lottery is surely good luck. Having a good family and good personal skills (intelligence, grit, curiosity, etc.) are important. This can help you with such things as getting a good education and knowing people who can help finance your business, or at least direct you to people who can.
So, too, are the people you connect with, often just by chance. How many people have you connected with through trade shows, networking events, or just waiting in line at the supermarket? It’s luck to some extent to cross paths with a potential customer, vendor, or just someone-who-knows-someone.
Tony Hsieh, who was the CEO of Zappos, insisted on hiring only “lucky people.”
Cultivating luck
Thomas Jefferson said: “I am a great believer in luck, and I find the harder I work, the more I have of it.” It’s been shown in a study that you can make your own luck:
“My research revealed that lucky people generate their own good fortune via four basic principles. They are skilled at creating and noticing chance opportunities, make lucky decisions by listening to their intuition, create self-fulfilling prophesies via positive expectations, and adopt a resilient attitude that transforms bad luck into good.”
As the old expression goes, when opportunity knocks, answer the door! The proverb says: “opportunity knocks but once.”
Final thought
I’ve been talking about good luck. The flip side unfortunately is bad luck, and that happens too. I had bad luck—bad timing—by trying unsuccessfully to start a mail order business for medications (incorporated as Meds By Mail, Inc.) in the early 90’s; it was just too early; bad timing. But being open to possibilities surely lets good luck in…you just have to know when it happens.
