Why most entrepreneurs fail

Download Why most entrepreneurs fail

Post on 07-Apr-2016

213 views

Category:

Documents

1 download

Embed Size (px)

DESCRIPTION

I am going to be an Entrepreneur is the happy thought that is going through most people's mind.

TRANSCRIPT

  • Why Most Entrepreneurs Fail?

    "I am going to be an Entrepreneur" is the happy thought that is going

    through most people's mind. The compelling reason may differ such as

    financial freedom and passion amongst other things.

    In the same way there are many reasons for a business, especially a start-

    up, to tank. I would like to list few of the practical difficulties or reason

    why budding or even an established entrepreneur fail.

  • 1. One man army

    Trying to do everything on their own. One man can be a founder but

    trying to do everything on his own not only hampers his business

    progress but also his priceless personal life.

    Try to share the work with your co-founder, employee, consultant or an

    unknown expert by searching and finding them in your locality or nearby

    area. Sharing the work right from the start helps a lot.

  • 2. Part Time Business

    Normally, in a start-up, and even in few companies which have achieved

    break-even will have the business owners working part time. May be that

    is a safe way of doing a business but the risk of failure will be the price it

    demands. The part-time work of the owner will show a negative image

    of the company. The employees might start to drift to competitors

    company since they are not seeing the potential and the trust that an

    owner should have in his own venture. At least one or a trustworthy

    representative of the owner should be working full-time thinking about

    the business, tracking the employee's work and creating a synergy across

    the organization.

  • 3. No Business Plan

    A business plan is something that always reminds you of the key things

    your business should have. Few of them are --why you started your

    business, where you wanted to be, your revenue plan, you goals, etc. The

    practical difficulties and the ground reality will always drag any business

    to an unplanned, unpleasant and unexpected situations. A successful

    entrepreneur should stay rooted; strong on the business objective (but

    can be flexible in the route to objective). Whenever you have doubt and

    feel like you are drifting, a good business ideas will be the right place to

    refer to bring an entrepreneur back to the right and planned track. No

    business plan or the lack of clarity in the business plan will always lead

    to failure.

  • 4. Not planning the revenue model

    There can be thousands of reasons for starting a business, but any

    business will strongly depend on one the important factor--"money".

    Whatever you want to do for your business, from planning to get a

    service or a product to support your business, to advertising your

    business, paying employees, to creating your company portal, branding

    etc., money is a key factor. Any kind of business will demand Initial

    investment (That may vary depends on the business and the scale one

    wishes to start). When months and years starts rolling, a business should

    start generating revenue, otherwise it is a trap. Most of the

    entrepreneurs will be confident on their business concept/model and in

    fact that will be a true winning concept.

  • 5. Expecting someone will help

    Most of the startup has been started having few people in mind that

    they, in some way or the other, will help in the growth of their company

    (If you are an entrepreneur reading this, just rewind and see--you too

    had it).

    They might be your friends, relative, colleague etc. But the bitter truth

    is, most of the time the people in your contact will be busy in their lives

    or have different opinion of your business. It doesn't mean you have to

    work alone, but have fewer expectations from your contacts. The only

    person who can do magic in a business is the founder and obviously with

    the support from your employees, contacts etc.

  • 6. Lack of networking skills

    This is the most important skill a business will demand from an

    entrepreneur. Without the right networking, any entrepreneur is like a

    needless watch. Starting the business, creating customer base--whatever

    activity you think, it demands networking.

    Lack of networking skills will leave the entrepreneur in isolation and will

    be a barrier between the entrepreneur and his success

  • 7. Entrepreneurs Ego

    Entrepreneur will take their business very close to their heart which in

    many occasions will lead them not listening to other's valuable

    suggestion.

    This doesn't mean always accept what others say about your business,

    but be open minded to positive criticism. Listen to all the criticism and

    inputs from others, analyses whether they are genuine or not.

  • 8. Superior or inferior thought

    Thinking our self to be superior or inferior to others is a basic and

    fundamental problem; especially in a business scenario, that thought will

    divert the entrepreneur by making him compare himself with other

    businesses rather than concentrating on his own business analysis and

    improvements .

    Although benchmarking your business with the industry standard or with

    a competitor is absolutely fine, comparing yourself or your business with

    them either to be proud or feeling less competitive will be a problem.

  • 9. Fail to recognize colleagues and Employees

    Few entrepreneurs will be very good in customer management, they will

    do everything right when comes to customer. In a business, the two

    important people we need to take care are our customer and our

    employees/colleagues. To me, the employees of our organization are

    primary as they are the one who always work to make the customer

    smile. If an entrepreneur fails to recognize his employees talent and

    their contribution to the organization, the organization is not in the right

    track of growth; it might even look like the business is winningbut not

    in the long term.

  • 10. No clue on the right doors to be knocked

    Wherever we are and whatever we are doing, we should know the right

    doors to be knocked to be successful. Right from choosing an auditor,

    customers, vendors, etc., an entrepreneur should be on top of knowing

    who will be best suited for a particular task.

    It might be that during start up, it will be challenging to identify the right

    doors, but an entrepreneur should quickly master in identifying the right

    people. This will help them in climbing the business ladder of success.

  • About Our Business Ladder

    Ourbusinessladder.com is a perfect platform to help entrepreneur with

    business ideas & strategies, to support their businesses in coming up

    with the right business plan and to provide a business forum where

    people with innovative concepts and ideas seek people with the

    wherewithal to recognize the concept and vice versa.

    Ourbusinessladder.com started with a vision to make the business

    journey exciting and memorable and to provide a platform in which all

    the likeminded work together in achieving the demands of their

    businesses.