More often than not, running a business can feel like an uphill battle. There are just so many things that can go wrong and so many different reasons a business can go under. According to CB Insights, 38% of failed startups list funding issues as a reason for failure. Slightly fewer, 35%, cite a lack of market need as a contributing factor. Finally, one in five businesses that fail say they experienced stiff competition, and it added to their downfall.
For Michael Kmetz and his team at DH Capital, the secret to success includes avoiding the reasons why startups so often fail. As a Future Business Legend Award recipient at the age of 21, Kmetz has had plenty of opportunities to learn how to evade them. Whether it’s ensuring the cash doesn’t run out or going into the fields he knows there’s a demand he can leverage; Kmetz has the techniques of staying on top covered. As for staying competitive, there’s one piece of advice he likes to share.
“Having sources of insider knowledge can be an incredible asset when it comes to ensuring competitiveness,” Michael Kmetz says. “In fact, it’s almost mandatory for latecomers to an industry or sector where there are already some established players. It goes a long way in helping businesses from being eaten alive.”
Thanks to his diverse interests, Michael Kmetz found his way into a select group of founding investors who started the Integro Bank. Being the youngest among them, Kmetz found himself in a great position to learn from people who knew many things business owners sometimes have to learn the hard way.
“I’ve learned some things that people go their whole careers without ever knowing,” he says. “After that experience, I know that even bad markets create new opportunities, and I can recognize them. I’ve also learned a lot about corporate banking, company structure with a future IPO in mind, and how to execute a massive capital raise.”
The next time Michael Kmetz decides to enter a new market or launch a new business, he knows that he has two things that give him a competitive edge. He knows how to play the market to his own benefit, and he knows how to manage money. That takes care of the top two reasons why businesses go under, besides giving him a strategic advantage.
Finally, Kmetz needs to get the message across that inside knowledge isn’t something he’s hoarding with hopes to exclude others. It’s also something he’ll be willing to offer, further down the line, to the people who will be following in his footsteps.
“I’d like to be generous with my time and offer mentorship to others,” Michael Kmetz says. “I had some phenomenal mentors in high school and college who encouraged me to pursue my dreams. I’m grateful for the support I’ve received and would like to pay it forward to the next generation of business leaders and entrepreneurs.”