Thinking that you can do it all, or that you are the best there is in the business is fooling yourself.
Thinking you have the right formula for success is another lie. It’s not enough to have the “machinery” in place. You must also have the willingness to be tested and fail, along with the ability to change with the times.
Here are 8 reasons why entrepreneurs fail
Lack of Proper Planning:
Any entrepreneur worth his salt should know that without proper planning, results will always remain elusive. Often times, entrepreneurs focus on building a strong infrastructure first and neglect to develop a solid business plan.
Reliance on tools
Others fall into the trap of relying on too many tools and programs to create a successful business without understanding the detail behind the tools.
It often includes colleagues that continually disagree on what an entrepreneur is saying, this can lead to wasted effort and a lack of traction.
Lack of Proper Management Skills:
Entrepreneurs who lack management skills cannot often identify and address problems quickly and effectively. This often leads to endless cost and effort to rectify the problem. Entrepreneurs who fail to manage their time and finances are also at a disadvantage.
Lack of vision and leadership:
One of the biggest reasons why small businesses fail is because of the inability to focus and manage their time wisely. Think the right action, at the right time.
Lack of a Good Business Plan:
Along with a weak business management system, a good business plan will leave entrepreneurs feeling confident that they can successfully handle any situation. Most entrepreneurs fail to think of all the possible outcomes when applying for funding as the plan they have is based on assumptions with no solid data behind it.
Lack of funds:
If a business owner does not build up sufficient funds early on, it can be very difficult to raise additional funds. Ensure you manage your funding runway and you know how long you have before you can move out of the red.
Lack of an Effective Marketing Strategy:
While most entrepreneurs focus on marketing, they overlook one of the most important aspects of marketing. Marketing, along with a strong business management system, will help entrepreneurs generate enough demand for their product.
There is plenty of work to do if you wish to start businesses. However, with the right knowledge, support, and guidance, entrepreneurs can succeed.
There are many reasons why some businesses fail. However, those reasons don’t account for the majority of failures.
All in all, I agree that there is no easy road to entrepreneurship. However, I believe with enough motivation and knowledge, most people can overcome any obstacle. Furthermore, with the right knowledge, entrepreneurs have learned from the mistakes made by others.
Therefore, if you have failed in the past or currently in the first 18 months of starting your own business, there is a good chance that you can overcome any obstacle.
My next article discusses getting organised, you can read it here.
If you would like to understand more about developing products as a start-up or within an organisation, join me on my next training session in Jan 2021.