Being an entrepreneur is like knowing you are an Old Style Clown Punching Bag and being happy about it. You know that you will be hit by many people but still you cannot do anything about it. Or on the brighter side you know that the more people hit you, the harder you will hit them back.
Entrepreneurs love to talk about their success but only few share their failures. Well, worry not because I have done that for you. In this blog post you will read 5 reasons why great Entrepreneurs fail and how to bounce back.
Reason 1: Starting business for the wrong reason
Starting a business because you just want to warn some good bucks will eventually throw you down to the drain. What might seem like a good reason as per this generation is more focused towards making money. Yes, money might be some part of your grand business plan but starting a business just to earn will not take you to the long road.
Here are some of the right reasons to start your business:
- You have passion for something greater than you and you believe that thing with full heart. You believe in the message you are spreading and you love to educate and study in your field. In doing so you will be fulfilling that need by your product.
- You have that drive, that patience, the determination to succeed even when others are throwing towel at you.
- Failures turn you on. You are eager to learn from your mistakes. Time after time studies showed that most of the Entrepreneurs label their success as early failures. If they didn’t fail in the start, there is no way they would have achieved the success they got.
- You want to be independent and you are skilled for it. And by launching your product you can prove this to your parents. (I actually did this for my venture)
- You like — if not love — your fellow man, and show this in your honesty, integrity, and interactions with others. You get along with and can deal with all different types of individuals.
Reason 2: Poor Management
In a survey published in the book Good to Great, Jim Collins conclude that Good to Great companies focus on management. They spend time on bringing in the best mangers and growing their companies at an exponential rate.
While on the other hand the companies that fail have poor management skills. New business owners lack of business expertise in every field. As per Jack Welch in his book ‘Winning’ put the right people on the bus and the wrong people off the bus. Realizing this fact early will surely direct your business to a new exciting level, but sadly the young Entrepreneurs get so overwhelmed in the sea of uncertainty that they fail to manage things properly. What is the remedy of the problem? Small business owners can educate themselves on skills they lack. Starting from books, interviews and talking to people, owners can learn a lot from each other and from people who are highly successful in the specific skills.
Reason 3: Lack of Capital
Starting a business is easy, but keep it running is hard. You might have a great idea but you lack the vision, the operating procedures you will eventually run out of capital. So, in order to give direction to your business you need to plan things before you run out of capital. Yes, it is easy to assume that things will turn out well but on the contrary they don’t if you are not willing enough to work on them with clear intention.
Many of the young Entrepreneurs run out of capital just because they lack basic financial skills, and as we have discussed above, that owner needs to have some knowledge about every field. So, what the owners can do is educate themselves in the related filed and acquire enough knowledge so they can survive in the world which is moving ahead at the speed of light.
Reason 4: Where are you located?
This habit clearly focus on the culture and the target audience. For instance when I started Branex – digital agency from Dubai it took me 4 months to analyze the audience and create strategies for them. Every country have their own set of rules and standards. What you need to do as an Entrepreneur is to understand the norms of the country you are willing to do business in.
Reason 5: Lack of planning
Anyone who has ever been in charge of a successful major event knows that were it not for their careful, methodical, strategic planning – and hard work – success would not have followed. The same could be said of most business successes. In order to succeed you need to plan every move and go with what your heart speaks to you. Keeping intuition in check is very important when taking decisions.
To conclude it all. There are many entrepreneurs but not everyone is the same. In order to succeed you need to carry out some habits that will ensure your success just like all others around you.