Why Most Entrepreneurs Fail to Build a Successful One
Entrepreneurship is a game some succeed and some fail. People who do it right they get the fruit of success while others who don’t do it in a right way they also taste its bitterness. Due to unlimited possibilities, people go after entrepreneurship. But out of 100 95% business fail but still, people take chances.
The purpose of this article here to aware you about the challenges to come on the way. Everybody starts their journey keeping thought of success in mind and if you want to start your entrepreneurial journey or have started already, it is essential for you to know the causes of failure to avoid the bitter fruits and to make it happen.
Owning a business for anybody might be proud of them, but to run and make it profitable one is a dream of everyone. Why most entrepreneurs fail to build a successful one describing here, and why other entrepreneurs succeed.
There are certain factors, that are responsible for a startups failure
Most people want immediate money without adding value, they are so driven by money to become successful in business the service or product you are giving should be more valuable than you get in exchange.
Their only motivational factor is money, not focus on service and quality.
The universal law says that to get you have to give first and people who seek money before giving never acquire financial freedom.
The customer is the most important in business ultimately they are money for us, if we take care them, they take care us. Solve the problem of the customer you will get the money.
Taking the solely responsibility of everything is the the most driven factor in a venture, take care of the employees, everybody who is engaging in the company relies on you not on anybody else, if the owner of the company refuse from his words then nobody will rely on him or her and TRP of the venture will go down.
The owner is like a captain in the ship that directs the ship he can drown or float.
3. No Listening or Ego
The ego of some people so high they think nobody is like me, and they never listen from their junior. They are too stubborn, not accessible to people because of their attitude.
Take productive advice not everything, if you listen to people half of the problems get solved every time.
When you are open people trust you and want to a relationship with you for a long run. Listen to everybody whether your employee, customer or another fellow.
4. Inadequate Knowledge or Skill
To drive a successful business venture a leader or person need some skill set and business knowledge. And that person not quests the skill set and business IQ, you earn money according, how much you know about the business, business needs hard work, dedication, learn a new skill set. Read a book sell or be sold, and how to enhance business skill.
A person should have all the skill set, flexible mindset, ready to take required action even new things because learning is a lifelong process if you are not master of the craft than nobody will listen to you, you have to master the field, through consistently improving your learning and improvement. Limited belief in himself, on their employees, and on products, all the things leads to inevitable failure.
5. Lack of Patience
Business takes time to settle down sometimes it takes longer than expected, and people fed up 2-3 years even 4 years to break even. Prepare yourself for time and should have that much patience to see the result.
6. Lack of Proper Planning
Most of the businesses fail they don’t have a goal, not structured the system in place, doing business in a haphazard way. No monthly or yearly target and plan doing business like this leads you to failures. A goal should be driving force for you achieve them at any cost.
7. Lack of Leadership Qualities
Some are born with other learn the skill, according to great mentors every skill is learnable nature is neutral to everybody, anyone can learn any skill, to run a company there is need to develop some skill set, management skill, decision making skill if you are lacking any of these get a mentor and learn, read books, take part in seminars.
8. Inability to Learn from Past Failures
The reason of failures could be multiple, often entrepreneurs are oblivious about their mistakes. Review your failure not to repeat next time, learn from it, and make a better strategy.
9. Lack of Funds
Most of the business fail due to lack of capital to run the startups to bear the day to day expenses, the situation becomes worst for them day by day if they are not meeting their monthly expenses how would they grow, unable to attract investors.
Entrepreneurs often fail because of they unable to raise sufficient amount or not at the right time.
10. Lack of Profit
Profitability is the backbone of any business, studies show that 40% business is profitable, 30% break even, and next 30% are in making a loss. Some business profit margin is very less, how would they sustain themselves.
11. Inability to Manage Finances
Without any financial planning or poor financial planning is the reason for losing a portion of money on unsubstantial things. Hire professional or learn how to manage funds for businesses.
12. Lack of Winning Attitude
Success is a habit, and it can be developed, the only warrior has that type of winning attitude, follow the steps of success, avoid failure plan, study successful people their habits, daily routine, what they do and what they don’t do. Make a successful plan. A leader with a winning attitude always wins whatever the circumstances around, their outcome is definite to win.
13. Wrong Partner
Sometime the wrong partner also could be a reason for failure, the wrong partner destroys your everything. You come out failure in no time.
14. No Market research
Before getting into business research well about the product or service, it will take few days or hired professional to do the work for you. Research the competition, make a good plan, strategize it, It will save you valuable time and money both, in few thousand bucks.
15. Lack of Coaching
Work with someone who is an extremely successful businessman, I have seen people who have a mentor are more successful compared to others.
Taking mentorship from a true entrepreneur saves you time and money, a 1-2 year is nothing, have you seen doctors, lawyers, engineers spend 8-10 years of their life to learn the skill under mentorship before start their own.
16. Doing Alone
Some entrepreneur has the tendency of doing work alone, not seek advice from fellow people or other they hesitate to share with others.
To achieve great height in business and venture you need a team and their support. You alone can’t make it.
A business model should be scalable without your involvement if not then the plan you have made not good enough to survive.
Now after knowing everything you can improve in inputs, you have better chances to make it, if you are putting in the right way then nobody can stop the output, follow the real-life validation, then your effort won’t be in vain.