You should see failure as an opportunity to learn and grow in your business: F.A.I.L.: First Attempt in Learning. Did you already read F.A.I.L Part 1? The biggest failure or mistake in business is failing to learn from your entrepreneurship failures. The best entrepreneurs are not defined by failures, but rather by how they deal with them. Navigating difficult situations, both externally and internally, is crucial to being a successful entrepreneur. Our Top 10 of F.A.I.L., part 2:
1. Failure to establish a goal
Always have a goal in mind; don’t jump into the world of business without a clear goal in mind.
Fail in preparation is usually due to organizational shortcomings generated by carelessness of the entrepreneur.
2. In the end enthusiasm is not enough to succeed
It’s important to be enthusiastic about your ideas and achievements; however, you need more than that such as resources, clear goals and ideas, etc. Fail can also be due to incapacity to convince investors that the idea is worthy. Also, this kind of fail can be determined by the lack of material or human resources in the area.
3. Inabillity to Learn
To succeed, you need to be able to learn new things and have the drive for it. Without that, it may be near impossible to create a steady-going business. Some entrepreneurs venture into fields outside their expertise and believe that only their intelligence will compensate this significant gap. They should take advice (friendly or contractual) from specialised experts.
4. Poor Money/Budget Management
Don’t throw your money around without a purpose. Always think about how money could be managed and spent in terms of improving your business. Fail in startup is due to incapacity to convince investors that the idea is worthy. Also, this kind of fail can be determined by the lack of material or human resources in the area.
5. Failure ot advertise/brand the Product
Never underestimate the power of advertising and marketing. With the right strategy for that, you can get quite far with your business and your own image. Fail branding can be the result of the incapacity to identify the proper market segment; to understand the needs, expectations and culture of the market segment; to use the proper channels to address this segment; to cultivate the proper brand; to legally protect the brand, etc. Today the customers are more sophisticated that they were decades ago. The products that possess only high functional features are not successful by themselves. They should possess also high ergonomic features and be supported by meaningful brands.
6. Underestimating the Competition
Underestimating the competition can be fatal for your business and you. Always take into account what the competition does to improve themselves and try to one-up them. Entrepreneurs should be careful regarding competition, because competition has already conquered a large segment of the market, has a deeply understanding of the customers and, in most cases, has a large amount of funds for “battle” that the entrepreneur hasn’t.
7. Starting for the Wrong Reasons
Starting a business should be meaningful to you. You should never start anything because you feel like you’re forced to or because it’s expected of you. The typical entrepreneur distinguish himself/herself from other people by vision and commitment to his/her idea.
8. Poor Management
When it comes to management, consider both parties. You can’t be a dictator and you can’t let people push you around. You need to be a leader to keep the morale of the people high and to let the business expand accordingly. Negligent entrepreneurs rely only on their “feeling” and believe they understand the market, when they actually don’t. Classic examples: Sinclair C5 and Webvan.
9. No Business Plan/Terrible Planning
Without a solid business plan, this task will be near impossible or at least much more difficult. Always prepare beforehand and give it much thought to avoid failure.
10. Surrounding yourself with the Wrong People
Don’t surround yourself with unmotivated, unreliable and lazy people. Ensure that the people you hire and surround yourself with share the same or similar energy and ideologies as you.
Many thanks to Slavena Boycheva and Mikolaj Bylinka with helping to make this list (Source: https://controversycast.wixsite.com/entrepreneurjourney/top-10-fails)
There are different types of failure that may occurs during your roadmap from dream to business.