Failure is not something you will consider when starting a new business. But research suggests, that he failure rate for new startups within five years of their business is near to 50 percent. Most of the entrepreneurs follow all the golden rules of becoming successful. Nevertheless, there are a lot of reasons and causes behind an entrepreneur’s failure, and today we will talk about F.A.I.L.: First Attempt In Learning, a chapter of our Young Migrant Entrepreneurs Project
YME will discuss below several failures you need to take into account as a young entrepreneur:
Lack of Vision
It is an assumption that loving something or having so much passionate about a thing is enough reason to make it a business. But people don’t understand the broader picture, the most necessary thing when starting a business is the vision. You have to realize that it is the starting point and where you would like to see yourself after 2, 5 or 10 years. A clear vision will help you to focus and can stop you from moving in a wrong direction.
Selection of a Business
Selection of business is eventually one of the top reasons why most entrepreneurs fail. One of the tricky moments in an entrepreneur’s life comes when he or she decides which business to adapt. Yes, every business has a potential of millions in it, but you have to understand that not every business is appropriate for you. Doing proper research before selecting a business is essential. Write down pros and cons of every business idea that comes to your mind and then go with the most suitable one.
Lack of Proper Planning
Improper planning is another common reason why entrepreneurs fail and go out of the market. A lot of first-time entrepreneurs often neglect that having a business plan is a very vital part of starting a new business. The planning should include a long-term and a short-term strategy. Your business vision will help you to set a goal but to achieve that goal a master plan is a key.
Not Having Enough Capital
Starting a business without sufficient capital is almost certainly a suicide. New entrepreneurs often don’t realize the importance of cash flow or underestimate the value of money they will need to run their startup smoothly. You may also take services of a financial advisory firm; they will help you to predict how much money you’ll need to launch your business.
Poor Implementation of the Plan
A master plan is worth nothing without proper execution. There are many reasons behind the failure of implementation, but the most critical reason is ineffective leadership. Implementation of new strategies comes with enormous challenges; leaders must have the courage and determination to overcome them with patience.
The Hiring of Wrong People
Hiring the right people is vital to the success of any entrepreneur. Hiring a wrong person is not only a waste of resources, but it also creates a negative work environment which is not a good sign for your company. Instead of regretting a lousy hire, take a wise move to replace it with a right one.
Failure in Marketing
Marketing plays the vital role in the success of every business, and it is also among the most significant factors in the failure of entrepreneurs in 2018. You can get many potential buyers for the services or products you are offering with the marketing; it is a reliable process that can significantly contribute to your business success.
Expanding Very Early
The expansion and growth are the primary goals of every entrepreneur, but an early evolution can lead your business to death. You must decide about growth only after carefully reviewing and analyzing all the aspects. Just keep in mind, after the expansion it will be much harder to manage your business, and you must do it at an exact time.
An important reason to mention for why entrepreneurs go out of business is underestimating the competition. To take a valuable share of a market, you must understand your competitors and think them as a severe threat. To increase your odds of success, keep a keen eye on your competitor’s strengths and weaknesses.
Giving Up Very Early
The cause which is very common in the failure of every entrepreneur is that they give up and shut down all the projects. It’s tough to encourage and pick you up in massive frustration, but there is no magic pill to turn failure into success. It’s time to face the truth; the path of becoming a successful entrepreneur is full of hurdles and roadblocks. Instead of giving up, learn from your mistakes and try not to repeat them.
There are many other reasons behind the failure of entrepreneurs in 2020, but these ten are most common and obvious. You’ve just got to deal with all of them to become successful.
Visit the YME website: www.ymeproject.com