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20 Reasons Why Entrepreneurs Fail

20 Reasons Why Entrepreneurs Fail

 

Out of every 20 businesses, 15 of them fail no sooner than they start out. Have you taken time to ask the question of why that is?

The truth is that as the saying goes, ‘if you fail to plan, you plan to fail’, period!

It is time for you to look into these facts and try as hard as you can to work on the areas where you fall short.

These 20 tips are yours. Work at them and get better.

1. No Clear Cut Vision

The easiest way to fail as a business person is to set out to do business without a clear cut vision. Your vision and mission helps you stay focused and on-track at all times.

2. Improper Management Of Finance

Entrepreneurs fail when they divert the money for their business to personal use. Adequate financial knowledge is necessary to effectively manage and run your business. When you start out with little or no knowledge in this regard, you are bound to fail.

3. Lack of Time Management Skills

If you do not manage your time well, you are sure headed for failure. Time management skill is important if you want to be successful as an entrepreneur. Forming a habit around keeping and maximizing time  is highly needful.

4. Allowing Family & Friends To Interfere

When you consistently allow family and friends to interfere in your business decision, it might likely ruin your business. As much as lies within your power, you must keep family and friends at bay.

5. Not Keeping Your Business Secret

Every business owner must keep his business secret to himself and if possible with some few selected trusted partners. When you make your business secret common place, other people may likely copy it and in no time you will be thrown out of your industry.

6. Lack of Management Skills

Lack of managerial skills can ruin any business. Every entrepreneur must seek to always upgrade and refresh their management skills if they indeed run their venture well.

7. Not Hiring The Right People

When you hire the wrong people for the job, it spells doom. There is a whole lot of calamity that could befall your brand. Make it a point of duty to hire the best hands.

8. Disregard For Business Etiquette

When you disrespect business etiquette, you are heading for failure. You must obey the ethics of the profession you belong to. There is no ‘rob Peter to pay Paul’ style when adhering strictly to business ethics comes to play.

9. Not Focusing on Your Core Products

It is good to have an idea of a lot of things, but it pays to master a few things. One of the recipe for failure as an entrepreneur is to be a Jack of all trades and Master of none. You have to ‘take the bull by the horn’, and carve a niche in your particular area of interest.

10. Wrong Business Decision

Wrong business decision is one of the major reasons why entrepreneurs fail. To be successful as an entrepreneur, you must master the art of making right decision promptly. If the decisions you make constantly bring in positive results, then you’re on the right track.

11. Wrong Financial Investment

It is very good to re-invest part of your profit to your business; but any wrong financial investment can drain the capital of your business. Remember, your capital is the life-line of your business, guard it with all you’ve got.

12. Not Paying Attention To Quality & Excellence

When you fail to pay attention to quality and excellence, you are planning to fail as an entrepreneur. People will always seek quality and excellence; to remain in business, you must continue to give it to them without abating.

13. Lack of Regard And Respect For Customers

Having customers patronize you is the number one reason why you are in business as an entrepreneur. If you are fond of treating your customers badly, then be rest assured you’ll be out of business soon.

14. Not Paying Attention To Your Health

It is only those that are healthy and alive that would want to do business. If you don’t work hard to remain healthy, it means you’ll be out of business sooner than you expect. Your health is key to the success of your brand.

15. Over Promising and Under Delivering

Some entrepreneurs’ think that over promising is what makes advertising sweet. When you consistently over- promise and you don’t have the capacity to always deliver, be sure that your customers will become weary of you and they are likely to leave you soon.

16. Working With The Wrong Values

It is very important to work with the right set of values as an entrepreneur. When you work with wrong values, you are sure headed for failure. Your values define how you do your business and it’s very easy for your customers to notice your values from the way you do business with them.

17. Inconsistency and Lack of Honesty

People don’t like doing business with anyone who is inconsistent and lacks honesty. You can hardly survive in the business world if you are not consistent. Honesty builds trust, consistency encourages value.

18. Being Over Ambitious

It is good to be ambitious, but when you become over-ambitious as a business person, you will be tempted to want to cut corners and that will surely lead to your down fall.

19. Mixing Emotion With Business

When you are fond of mixing emotion with business, it will sure affect some of your key business decisions and it can affect your business negatively. If you’re having personal emotional issues, solve them and don’t mix them with business activities; they’ll do more harm than good.

20. Doing Everything Yourself

The fact that you are the owner of the business and you want to maximize profits doesn’t mean you can do everything yourself. Learn to delegate and outsource when necessary, if you truly wants to avoid failure.

Nobody decides to fail at anything in life. It is the inability to follow through some principles that causes failure. As an entrepreneur you must be ready at all time to make adjustments in areas where you know you aren’t living up to expectation.

On the other hand, if you have tried to be your best, you can get better so that you will be counted amongst the very best of brands.

Published by Valentine Belonwu

My name is Valentine, founder of this site, an entrepreneur working as a moderator at Bizsugar a small business community news site. Connect with me on Google+ at Valetine Belonwu

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