Entrepreneurs drive the economy, innovation and job creation. However, about half fail in the first five years with two in three lasting less than a decade. How can you be one of the 33% of new businesses that survive the long haul?
Let’s explore a few of the common reasons why most entrepreneurs fail…
#1. Not Leveraging Existing Community And Support
Most likely it’s because they’re not surrounded by the right people. Ever heard the saying “you’re only as good as the company you keep”? New businesses often fail when entrepreneurs don’t have the resources or knowledge to properly execute their ideas. Surround yourself with experts.
Success is a team sport and you can’t achieve it alone, so ask for help. The digital entrepreneurs community I’m a member of is a platform built to help members to get to know each other, mastermind and build long-lasting relationships that will help them take their businesses to the next level. I cannot stress enough how important it is to leverage a community or group of supporters. That’s where you can get help and insights from other people who are in the “trenches” with you every day.
As Lori Greiner of Shark Tank said, “Entrepreneurs are the only people who will work 80 hours a week to avoid working 40 hours a week”. In other words, they don’t manage to successfully transition from employee to entrepreneur because they haven’t built a strong enough foundation.
Like many employers, which ironically is what drives many people to become entrepreneurs, they can quickly burn out and lose their drive and passion without the right support. Starting a business is a 24/7 job in most cases, and if you are not able to ease that burden as you grow, you will never be able to sustain that long term.
#3. Not Having Enough Money
Many fail before they’ve really gotten started because they don’t have the capital it takes to operate successfully as an entrepreneur. But that also depends on the business model you opt for. As an entrepreneur in the digital world, you can start with very little money.
#4. High Overheads/Low Margins
As a digital entrepreneur, you’re free of many of the financial traps offline entrepreneurs face as capital, premises, overheads, staff, etc. aren’t concerns. The costs of starting an online business are exceptionally low. A laptop and an internet connection are all you really need to get started. Forget pricey office equipment and traveling expenses. The margins are also very high because you do not have to manufacture goods or buy them from a supplier and apply a mark-up. And, in the case of affiliate marketing, you simply market on behalf of other businesses. It is a unique venture for a person who wishes to turn a profit without spending much money.
#5. Not Managing Their Expectations
Rome wasn’t built in a day and neither were Amazon or Microsoft. Many entrepreneurs will chase the money by adding products or services they do not truly specialise in. As an entrepreneur you get paid for your perspective, for who you are, not for your expertise – you’re merely a guide.
Entrepreneurs who know what they do well (and what they don’t) will have a far more sustainable business than those who try to be a jack of all trades and master of none.
#6. Not Practising Self-Care
We have to take care of ourselves before we can take care of others. And investing in and being kind to ourselves, our own growth and development is crucial to self-care.
#7. Too Afraid To Make Mistakes
Every day’s a learning day. Too many entrepreneurs are too emotional when it comes to their business. There is no such thing as success without mistakes. Let criticism serve as an opportunity to do better. Failing is not failure but giving up is.
“Successful people don’t fear failure, but understand that it’s necessary to learn and grow from”. [Robert T. Kiyosaki]
#8. Lack of Focus
The best way to keep yourself focused is to do what you love because in this manner, you will never ever lose the interest in what you are doing. And if you don’t, at least know that focus is very important, because this keeps you directed and attentive. Success is a decision, so trust the journey. Your true focus will come when you focus on building a life, not a business.
Entrepreneurs drive the economy, innovation and job creation. However, about half fail in the first five years with two in three lasting less than a decade. Be one of the 33% of new businesses that survive the long haul…