Why most entrepreneurs fail
Post on 07-Apr-2016
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DESCRIPTIONI am going to be an Entrepreneur is the happy thought that is going through most people's mind.
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
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
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
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
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
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.
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