5 Reasons Why Many Entrepreneurs Fail
Posted on August 7, 2010
As an entrepreneur, I frequently see many colleagues failing to succeed. It is a sad but a true fact that “roughly 50% of small businesses fail within the first five years” (U.S. Small Business Administration). I often wonder why it is so common for entrepreneurs to fail and only now have I determined 5 rational reasons.
Putting Money First
One reason why many entrepreneurs fail is because of their love for money. One thing every entrepreneur must know is that the quality of your product or service is more important than the money you will make. It is crucial that you put your costumers first and always have them in mind when taking any major step in your business.
Failure to Plan Ahead
As entreprenuers, it is always very important to plan ahead because many of our decisions will affect us in the long run. When trying to invest or innovate as an entrepreneur, it is always very important not to just come up with an idea and implement it right away but to think far more in advance. You need to be able to calculate what the future consequences would be and distinguish if this decision is truly beneficial. Failure to plan is planning to fail.
Failure to Network
Many entrepreneurs fail to network correctly and prefer to be alone. When trying to succeed as an entrepreneur, never underestimate the power of others. It is very important to try and associate with top entrepreneurs and influencers in your field because you can tap into their audience. There is so much that you can learn from others, whether or not you embrace this opportunity is your decision. Find one or two people, work together, bounce ideas off each other, ask questions and argue with them and your business will develop quicker.
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Lack of Patience
Many entrepreneurs are so impatient that after a few weeks of starting a business they will close it down claiming the business was not producing results. As with so many things, success does not come overnight; it only comes after years of serious hardwork. It is always very important for you to wait patiently for your business to bring results, and not kill your great dream because of slow results.
Not Having a Priority List
This is another major element of entrepreneurial failure which can also be referred to as “lack of organization.” Every entrepreneur must prioritize and keep a list of things that need to be done. It is also important to focus your time and efforts on what matters most. Everything is not going to work out perfectly, but you must make sure you get the best out of that which works.
As an entrepreneur, you can not simply run into a business hoping it will succeed. Growing a business takes time and commitment along with people that can help. Make sure you plan for the future, make decisions wisely and prioritize your tasks.
What do you think? Are there other reasons entrepreneurs fail?