There are many many many entrepreneurs that want to start their own business, but only a tiny amount of them succeed.
The sad truth is that the majority of entrepreneurs just fail, and don't bounce back.
Do you have what it takes to start, grow and operate a successful business?
I have put together this list of reasons why entrepreneurs fail, so that you can avoid making the same mistakes that others have made.
Here are 7 of the most common reasons why entrepreneurs fail:
Bad at Money Management
If you are bad at money management, and fail to limit your spending, before long, you will not have enough money to keep your business running.
You should create a financial plan for your business before you spend any money.
Creating and implementing a financial plan allows you to visualise the areas of the company where resources are most required for growth, such as marketing, product development, hiring, etc.
As well as badly managing money that is set aside for their business, many people also spend too much money on entertainment, designer clothes, and other unnecessary goods.
When you are first starting a business, you will have to forget about luxuries, and focus on making sure that your business is financially stable.
No Clear Business Plan
A business plan will help you to stay on the right track, and keep moving forward.
If you have the right tools, creating a business plan is easier than you think, here is a guide on how to create a business plan, and also a great business plan template.
There are many reasons for you to create a business plan, but here are 5 of the most important:
- Establish business milestones
- Better understand your target market
- To attract investors
- Better understand your competition
- Prove you are serious about your business
There are also many more reasons why you should create a business plan, it is a very important step when starting a business.
Giving Up Too Soon
When you start a new business it is absolutely crucial that you don't give up when you get hit with a setback.
There will be things that frustrate you, knock you down, and push you back, but this is when you have to keep moving forward.
You have to learn from your mistakes, and keep trying until you get it right.
Focused on The Wrong Things
It is important that you focus on the things that will make your business money, and help it to grow.
If you are starting a landscaping business, but keep changing how your website looks, or redesigning your logo, you are focusing on the wrong things.
You also want to make sure that you don't easily get distracted while working, for example, if you watch too much Netflix, block the website on your work computer.
Failure to be Consistent
To have a successful business, you need to be consistent.
It does not matter what industry you are in, consistency is key.
If you run a blog, consistently post new content to your blog, if you have a marketing plan, consistently work towards your KPIs.
Consistency should be one of your main priorities when running a business.
You are starting a new business, so you can't expect to get rich overnight, or land 10 clients in the first week.
Too many entrepreneurs have unrealistic expectations when starting a new venture, and think that they will get rich quick, or have 1000s of website visitors in a matter of days.
You need to set yourself realistic expectations for your business, especially at the start.
Set yourself weekly, monthly, and yearly goals that you can work towards.
Of course, it is important to dream, and set big goals, but if you don't reach those expectations it can have a negative impact and make you lose interest in your business.
Unable to Take Constructive Criticism
When starting and growing a business, you need to be able to take on constrictive criticism.
If people are just throwing negativity your way, then just ignore it, but when people are giving you constrictive criticism, you have to listen to them in order to improve.
The chances are, your product or service won't be perfect straight away, but if you give up and walk away when someone gives you criticism, you do not have the right mindset.
Take all criticism onboard, and use it to improve, learn, and grow!
Please try to keep all of this in mind, and remember how important it is to keep bouncing back every time your business gets hit with a setback.