10 Most Common Reasons Entrepreneurs Fail & What You Can Do To Succeed
Definitions of entrepreneur on the Web:
- someone who organizes a business venture and assumes the risk for it
- An entrepreneur is a person who has possession of a new enterprise, venture or idea and assumes significant accountability for the inherent risks and the outcome.
- Willing to take risks in order to make a profit
Definitions of failure on the Web:
- An act that fails;
- An event that does not accomplish its intended purpose;
- Lack of success;
- A person with a record of failing; someone who loses consistently an unexpected omission;
- Bankruptcy: inability to discharge all your debts as they come due;
- Loss of ability to function normally;
- Failure refers to the state or condition of not meeting a desirable or intended objective, and may be viewed as the opposite of success
Reason 1 | No Vision
Most start small, but most will stay small.
Most entrepreneurs think that something like a vision is for big corporates and they will come to that when they become big enough.
Start with a vision; something to hold on to when everything else falls apart.
Vision lets your entire team know what it is that they are working so hard for.
What is it that keeps you willing to fight every battle, every obstacle!
Reason 2 | Team
You are not superman.
You may think you can do everything by yourself, but you cant.
Find a good team to manage all the tasks you cannot do yourself or dont do so well yourself.
Even better, use the E-Myth - it says you should work on your business and not in your business.
That is the difference between people who go on to create successful companies and enterprises
read success tips
Reason 3 | Shy
Shy to ask questions?
Shy to ask for business?
Shy to ask for help?
Shy to ask for money?
You will fail coz you are shy.
What should you do?
Reason 4 | Wrong Reasons
If you start the business because you are pissed off with your boss or that you think waking up early is not necessary, then you are starting for the wrong reasons.
Starting something just because you have an awesome idea is not enough.
You need an idea that can make money and hence an idea users/customers are willing to pay for.
- Business Life Lessons 101: Choose Your Business Partner Carefully
A business partnership is like a marriage. You may spend more time with your business partner than you do with your spouse. A bad business marriage can be more devastating than a spousal divorce. Choose your business partner carefully!
Reason 5 | partners
Going it alone is pretty cool, but if you so decide to pick up partners you will find them a nuisance and a limitation if you do not choose these carefully. very carefully.
Here are some simple guidelines:
- Friendship is not a pre-requisite for a partner. it is great to work with a friend but it is not a must.
- Partners do not need to be the same. yes, you need to share the vision, but if you are similar in your competencies, backgrounds, temperament etc, you may not be the best fit.
- Partners do not need to party together. eat, share, work, discuss etc, but you do not necessarily need to party or socialize together. do not form partnerships based on whether or not the others are good conversationalists.
- Partners do need to bring in responsibility
- Partners do need to be able to questions
- Partners do need to be able to challenge
- Partners do need to want the same things
Reason 6 | Knowledge
Lack of knowledge or very simply outdated knowledge will put you out of business quickly.
If you intend to do anything, please research not just what is happening in the area/field at the moment, but also what the research is going to bring pretty soon.
- Subscribe to sources of information - publications, trade journals, websites, bloggers, etc
- Attend industry conferences
- Every year attend a classroom style course
- Read books
- Meet casually with others in the same business
Reason 7 | Dont know when to say NO
You need to learn to say NO!
No to odd requests.
No to customizations (unpaid ones!)
No to late payments
No to impossible timelines, say NO.
Learn to say NO to any activity that is not adding value to your enterprise
Reason 8 | Saying YES to everything
This is probably worse than not being able to say NO.
You will fail if you begin to chase very opportunity that comes your way.
Your time is precious and you must devote it to the maximum benefit.
When you are starting out, it feels like you should go after every piece of business, do every deal, apply for every tender, take on every client who walks in through the door.
Doing this will dilute your commitment, your focus and will blur what it is that you are to be known for.
Find a niche, create such a magnificent detail and leadership in it that there is no question on who to go to. YOU!
Reason 9 | Heavy borrowing
Do not over extend your credit to finance your business.
When you cant even meet your interest payments monthly, you know you are in trouble.
Here is something I read from a blog. I am sorry I dont remember the author but if you do, please leave it in comments and I will give the due credit.
You should have 3 types of projects / Work :
- Short term - to pay your bills. could be simple work, anything, as long as it pays the monthly bills
- Medium term - 3 - 6 months - work on something that will start paying in 3 - 6 months
- Long term 1- 3 yrs - work on something, create something that will start paying 1 - 3 yrs from now.
All 3 are important.
Reason 10 | Options
Telling yourself that you can always go back to a job or you can borrow from somewhere, or if this does not work there are ten other things to do.
This is a BIG reason for so many failures.
Here is something for you to think about.
I like to call it the Tiger Syndrome Conundrum
read it here http://hubpages.com/hub/Tiger-Syndrome-Conundrum
- what is a vision statement and how to make it
What is a vision statement? here my layman takes on it. anything that lets everyone working together know what they are working towards a statement of intent purpose stated direction motivation...
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