Top 9 Reasons Why Most Entrepreneurs Fail
It's very tough to quantify why an entrepreneur will fail. We all start a business in the hopes of building a future of freedom but in most cases, life has a way of making things tougher than it seems in our head.
It's simple, to be an entrepreneur is by developing a way of life that if executed right will lead to freedom-- not money. There are many successful entrepreneurs who are not billionaires, so you'll have to make sure you are not creating a lifestyle that will end up being stressful.
These points should not discourage you from endeavoring on your entrepreneurial journey, but rather use them as a guide to help you not stumble on your way to success.
1. Before Any Thing Happens You Quit
Starting a business is like embarking to the unknown. Yes, you have your plan ready and will start next week, then next week becomes next month...and so on. You have quit before you even started. If you are about to start a business and cannot get your timeline straight, you are already heading for a disaster.
2. You Have The Wrong Conception of Entrepreneurship
Getting inspired by seeing other entrepreneurs achieve and live their dreams is amazing, but you fail to understand the fundamentals of what it entails to get to that level. Most successful entrepreneurs have failed mercilessly along the way, so you'll need to understand what failure is and how to marginalize your emotions and get back to work.
The wrong conception of entrepreneurship is thinking you'll make a ton of money tomorrow with no hard-work and then you find yourself working long hours with no income to pay your bills or even get a full meal a day. From my experience, aspiring entrepreneurs don't understand this fundamental sacrifice to succeed in the future.
3. Your Product Market Fit
Not doing research on the market you plan to target, is already a recipe for failure. If you can't find customers for your potential product, you might be wasting your time and money. Most industries are very competitive, so you'll need to find a product that will resonate with a specific industry.
4. You Have No Soft Skills
Most entrepreneurs fail due to lack of soft skills. What do I mean by that, well if you can't listen to advise or communicate respectfully - you might be heading for failure. You don't take responsibility for your actions, blame your employees for mistakes you or them made without encouragement can be a serious case of bad soft skills.
5. Expectations Too High
Believing in yourself is key to succeeding, but believing in miracles with no hard-work or smart moves is like waiting to fail. I'm not saying miracles can't happen, you just have to work hard and smart to get closer to your miracle.
Make sure to view your journey from a realistic phase, so you can focus on the things that matter to make your miracle happen. On this note, always make sure you are helping and solving a problem for others not yourself.
6. Not Being Smart
No entrepreneur is dumb. But if you are not approaching your business from the right angle, you might not be doing the right things to achieve you goals. If the market you are targeting doesn't accept your idea, you might've been creating the wrong product because you missed the testing phase which includes; Market fit, customer types, demographic and location (for seasonal products and services).
Some entrepreneurs fail because their entrepreneurship skills come with variations. The saddest is someone who thinks they are a tremendous well-rounded entrepreneurs but others think they are terrible at running or creating companies that actual yield a following. If you blind to what others see, then you are blind to succeed and this will almost account to failure in the long run.
7. Terrible Business Partners
Not knowing who to partner with, can be hint you are heading for a disaster. Entrepreneurs who fail, often surround themselves with the wrong crowd. If you are also on the receiving end and always never challenged, you should be afraid of the crowd you surround yourself with. Giving in too much or redrawing out of situations to quickly can be horrible.
Successful entrepreneurs turn to have a purpose driven strategy on how they spend their time and are always asking questions as to how this new partner will help them grow or advise them on new ways to reach high. Bad entrepreneurs don't understand this filters and will usually fail bringing in the worst partners.
8. Do-It-Yourself Mentality
If you are and entrepreneur and cannot coordinate tasks for your business, you might simply not grow or you will fail. You can have all the tools, power, energy and mindset to get things done, but there is much more you might be missing because you lack the skills to get them done.
If you find yourself in this situation, hire help for the specific skills deficiency - don't try to do on your own. Entrepreneurs who think they won't need help to grow are usually delusional or hard headed and will eventually give up and throw the towel.
9. Can't Manage A Business Budget
Running a business comes with expenses, even when you are not making money. How will you plan and execute your budgets?
This is where most entrepreneurs fail, because they run out of money due to over spending on unnecessary things. If you are just starting out, being frugal can be the best way to go. The bad thing about not managing your business budget right, is the fantasy that things will always be the same or more.
In business, things can change very quickly and if you don't adjust you'll be bleeding cash out of your business. Always make sure to have budget reserves and save for the future of you company. Money is one of the biggest reasons why entrepreneurs fail quickly.
I was inspired to write this piece because of decision have seen go awry by entrepreneurs I believed to be on their game. Nevertheless, I hope this helps guide you through your entrepreneurial journey --Pushing you through the failures and lifting you up through the process of running a business. It's never going to be easy!
If you disagree, I'll challenge you to create an eCommerce store today! Get back to me in 3 month and let me know how things are going. You can also get in touch with me if you're in need of digital strategies that will help you amplify your online business success.
Divine Tumenta is an entrepreneur and professional digital marketing expert based in Los Angeles. He has worked in digital marketing for more than 8 years. He is currently founder and CEO of Backlinkfy.com and a go to consultant for startups and small businesses in the USA.