10 Reasons Why Most Entrepreneurs Don’t Succeed
Every day new markets and thus new businesses are emerging but only a handful of those entrepreneurs actually survive to make it big. Read on to find out the 10 most common reasons why most entrepreneurs don’t succeed.
Failure to gauge the market’s need.
Failed entrepreneurs think that whatever they would offer would become the selling product instead of studying the market and providing that product which it needs.
Focusing on the business supporting than money making
Most entrepreneurs that don’t succeed waste their time, energy and money on secondary requirements like accounting, trademark etc. rather than on lead generation or how to sell their products to the new and existing customers.
Running out of capital
The entrepreneurs who fail are generally those who do not make a proper budget or make insufficient or poor attempts at funds-raising or underestimate their expenditure. These reasons could be singularly responsible for their failure or may even be in combination of one or more.
Stressing on ideas than on execution
Usually the entrepreneurs are great creative minds who are so absorbed in their own ideas that they fail to put them into action and actually create a wholesome product which the customer can buy.
Trying to concentrate on multiple businesses
Diffused attention or in other words lack of proper time and energy given to one project at hand results into weak entrepreneurship. This way all the ventures undertaken are affected and none of them is able to flourish.
Lacking in originality
Another major setback to an entrepreneur would be his lack of uniqueness. The concept or the resultant product should be revolutionary to attract prospective customers. An old formula product will of course fail to make its place in the market where there are similar products existing that have already won their trust.
Underestimating importance of seemingly tiny stalwarts
What the new entrepreneurs ignore usually results in their fall down. It may not be something big but small issues like low costing raw materials, infrastructure etc. For start-ups to succeed; these little things also need to be considered religiously or else they fail.
Sometimes the established business giants are though selling a product that is out dated while yours is the new technology that the market seeks; still due to their power and existing stronger customer base they may not back down so easily; making it tougher for you to find your footing.
Relying on the wrong personnel
Any business needs an effective team to make it work but if it’s incompetent or there are internal conflicts among the entities a business is bound to collapse. Moreover, in most of the cases the founders of a joint venture can’t keep it together and fallout taking their dreams and sweat along with them. An entrepreneur may also fall victim to just plain bad luck and take up the wrong advice or ignore the right advice and opportunity when one comes along.
This is the by far the saddest of all the reasons for the entrepreneurs’ failure. They don’t learn from their mistakes or try again. They are afraid to take chances and become unwilling to adapt to the flow of market. Also, they become too proud to ask for help or sought sound advice from the experienced.