Ever wondered why entrepreneurs fail despite the huge influx of capital and investors. Most businesses in the United States have a life span of 5 years and even the ones who live past that are probably considering their chances. This is because the little yet vital things are overlooked. Money doesn’t necessarily guarantee success and without the right approach and mind set any business is bound to fail.
Nowadays most businesses are set up mainly for the purpose of maximising profit even though that is the motive behind being an entrepreneur but most of these businesses don’t consider giving back in terms of quality.
I decided to take time out in looking into the main reason why entrepreneurs fail and I came up with this.
1. POOR MARKET RESEARCH:
As an entrepreneur who is willing the succeed, before venturing into any business a proper and adequate market survey/research should be done, reason why is because this enables an entrepreneur to prepare in order to take certain measures that will guarantee his success and give him a firm footing into the business
By surveying the market, you analyse certain things like
- Customer need
- Level of demand
When an entrepreneur knows major factors such as these, he can then strategize and formulate a winning tactic endeavouring into his entrepreneurial career. It gives an entrepreneur direction coupled with the right mentality in order to attain success as an entrepreneur. The idea behind this is quite simple because in the long run it really does come in handy.
2. LACK OF KNOWLEDGE OF THE BUSINESS:
Before venturing into any form of business, knowledge is needed. Just as the saying goes ‘’knowledge is power’’ and what does power give? It gives the beholder an edge over others. Entrepreneurship is all about have a high bargaining power and when one possess this, the odds are likely to be in his favour.
All that is needed in entrepreneurship is to know something others don’t know and then offering it to them at a price. This gives massive power to the entrepreneur and all that is left is for him to exploit and take his chance. Having power at hand is the beginning of any entrepreneurial endeavour and power to an entrepreneur comes in different shapes and sizes.
- Financial power:
I might have mentioned earlier that money doesn’t necessarily guarantee success but you have to admit that it’s a plus and life will be less daunting if one has financial freedom. Isn’t that the whole point? And why we are doing this.
- Environmental power:
When a business is located in an area familiar to the entrepreneur, it gives such an entrepreneur an edge resulting from the fact that he is well acquainted with the pros and cons of trading in such an environment. Such environmental power could be in form of acquaintance with the or in knowing their sense of taste and fashion.
- Political power:
Having a connection within the political realm of any industry can really go a long way in determining how far an entrepreneur can go in his chosen field. By political power, I don’t mean having access to government-ish. Every industry has its own head and these heads run a political like campaign within the industry where they decide and take steps in promoting their industry.
3. LACK OF DIRECTION:
When going north, it is important to stick with going north because going south will be turning back, going east will be a diversion and going west will only lead you further away from your destination. It is better to sail on a boat going towards the right direction than on a speed boat that is going the wrong way, you know why? It’s because even if it takes forever, the boat will eventually get to its destination while the speed boat has no chance of ever making it. The story of the speed boat will be like what I’ve always thought about my brother ‘’he came a long way, but he went the wrong way”.
Indecision is what kills most entrepreneurs, it is advisable to make plans pointing to a particular direction and sticking to that route even if it doesn’t seem to be yielding any reward.
I thought and said to myself ‘’I will write this post today” that was two weeks ago. The post dint write itself neither did the mere thinking of it. This particular post attracts nothing less than 200 visits and if I had posted it two week ago when I first thought about it, it would have attracted over 2000 visitors but all that is what could have been.
Ever saw the Nike slogan that says ‘’just do it’’ well it’s an important drive against procrastination. Now is the time, no matter the quantity of resources available, let every activity take place in its own given time and period to avoid a state of turmoil resulting from the endless compilation of work. The best way to avoid procrastination is by
- Prioritizing your work:
This helps to list them in order of importance so that the less important jobs are at the bottom of the list. This helps to stop any detriments that are likely to occur as a resulting of crucial jobs being omitted.
- Have a calendar schedule:
Building a list of the various works to be done on a calendar tends to serve as a reminder and a call to action. The idea behind this is just so everything remains organized and scheduled until point of need.
- Doing the hard jobs first:
When sitting for an exam, what that popular phrase the inspectors always say? If I’m right it goes like this “do the hard ones first before coming back to the easy ones” and this usually amply to mathematics.
The same goes for entrepreneurship and a true entrepreneur who sees success as a determinant of riches must first get the hard jobs out of the way so the rest comes faster and natural to him and this later on leads to efficiency and effectiveness in production in the long run.
The only thing that separates the best from the average is consistency. Consistency doeth all things. Consistency can make the mighty fall and the small mighty. It is only through consistency an entrepreneur can attain success not just consistency but being consistent on the right thing. Practice brings about consistency, so in going about one’s daily routine as an entrepreneur, consistency is bound to fall in place.
WHY ENTREPRENEURS FAIL
I hope we have been able to establish the basis for the failure of most entrepreneurs and I think you would agree with me on the following
- Most entrepreneurs fail to do a market research before venturing into business which as a result causes failure all on fronts. Market research aims at analysing one’s competition before competing.
- It is ideal to have the knowledge of any form of business, reason why is because it creates the foundation of success when ventured into.
- An entrepreneur must be consistent in all his dealings and doings so as to avoid failure.
You can shed more light on the reasons for failure as an entrepreneur by sharing your views below.