Top 10 Reasons Why Most Entrepreneurs Fail in Business

Being an entrepreneur is an American Dream. However, in the struggle to get financing, execute a business plan, overtake competitors, arrange sales training and learn the tricks of a particular niche, many entrepreneurs fail. Even though failure is likely, it is not inevitable. Here are 10 destructive actions to avoid.

1.       Premature Start

There are many reasons for a startup to launch early. The main one Premature Start is that the market is constantly changing and entrepreneurs want to put out the next big game-changing product before anyone else does. That’s fine, but don’t launch before your product is exceptional and high quality; you have the necessary staff, advisers and space; and you’ve done all other pertinent research and preparation.

2.       Lack of Capital

Many businesses close because they have run out of money and cannot sustain operations. Entrepreneurs need to gather data to project how long it will take a business to turn a profit and how much seed money is needed to open and sustain business until then. With research and plans in hand, take meetings with investors (preferably not those named “Mom” and “Dad).  Pitch your plan and see who believes in your idea and wants to take the risk with you.

3.       Flawed Business Concept

Is your business idea really sound? Is it unoriginal or impossible? Is the scope too big?  When you run your ideas past potential investors or veteran business people, any lack of interest, extreme caution or critical feedback from them can reveal there is something very wrong with your business concept. Press such people for detailed reasons for rejection – and take them seriously.

4.       Poor Audience Development

If you build it, they may not come. Just because you have a terrific product or business, don’t expect customers to automatically support you at a level necessary for survival. Entrepreneurs must develop their audience before they even open. Identify the audience; then build ties. This can be combined with sales training, as salespeople must excel in prospect research. Research and profile your ideal customer, so you can understand needs and nature. Find the places where they hang out offline or online so you can reach the audience when necessary.  Repeat audience research regularly as part of your sales and marketing process improvement.

5.       Weak Marketing

Even if you have caught the attention of your audience, you still have to design specific campaigns with messages that appeal to buyer personalities so that you can drive them in a personal way to your business.  Many new businesses fail because they don’t take advantage of personalized advertising or online advertising.  Develop ways to combine traditional marketing with innovative digital marketing through the sales and marketing process improvement team.  Plus, go out into the real world and interact. Your personality and presence are billboards for your brand.

6.       Ineffective Team

Vet all team members for not only expertise, but also the fervency that’s necessary to keep a startup afloat. When team members are not as excited or invested as owners, they won’t be willing to wear the multiple hats and stay the long hours required to sustain a news business.

7.       Competition

Many startups underestimate the strength of the competition and fail to position themselves in the market as someone offering what the competition lacks.

8.       Failure to Adapt to Market

Some startups operate blindly, unwilling to adjust to customer demands, introduce new products, phase out poor products, use new equipment and processes or adapt in any way to marketplace fluctuations. The Sales and Marketing Process Improvement team should always be looking for ways to stay ahead of market trends and make sure the business can cater to new interests and needs.

9.       Bad Advice

Don’t let everyone Bad advise you on your business. Take tips from authorities – and only authorities you trust and respect. Many new businesses tank because they listen to a source that lacks credentials and true insight.

 10.   Sole Founder

Businesses that have two or more founders who can share the burden of sustaining the business tend to do better.

New businesses are risky ­­— no matter how good your product, sales training or sales staff. Even if you end up failing, make the risk worth it by learning from failure and adjusting your approach next time.