The Top 7 Reasons Why Entrepreneurs Fail
I’ve seen countless entrepreneurs go though my coaching program. I myself have been an entrepreneur for 22 years and to say that I haven’t made some of these mistakes myself would be a lie. I’m your coach, I’m here to help you. So let’s take a look at the top 7 reasons why entrepreneurs fail before they can even get their businesses off the ground.
1. Creating Infrastructure That is Not Yet Needed For Their Business
I have seen this mistake over and over again. The moment the idea for a business pops into your head, you want to go and get the perfect website, the biggest office, business cards, maybe the higher end ones with your name on the calendar. Then there’s the fancy chair and the fancy computer. Here’s the thing, guys, a business isn’t always a fancy office and a computer.
If you want to have a successful business, your number one priority on day one is that you have to work hard. – Arman Sadegi
I guarantee you, if you are working hard, you do not need business cards, brochures, marketing materials, etc. That’s not to say that down the road you won’t need these things, but in the beginning, don’t make the mistake that so many entrepreneurs make and create infrastructure that your business doesn’t need yet.
2. Creating Services That Are Not Yet Proven To Sell
Thinking that clients can use this amazing product and they put days, weeks, months, and even years into developing this product that hasn’t even been proven to sell. This is an essential part of the selling part – you must create services that have room to be sold. Or else, who will buy your product?
3. Failing to Recognize Their Biggest Strength is Always the Ability to Sell Their Product
No matter what you want to sell, you have to be willing to sell yourself and your product. You’re the one person who knows and loves your product most. People will say “Well, I’m not a salesperson!” Even better! Salespeople have a bad reputation of being uncaring. Don’t you care about your product? Don’t you want to deliver your product to people who need them? Let your passion shine through.
You must recognize that early on, you will have to be the one to sell your products. Love your customers from the bottom of your heart and prove it to them with your attitude, dedication and mission.
4. Creating Systems That Regular Employees Can’t Understand.
If you want to go from a business operator to business manager then you must create systems that people can do 70% as well as you, but still get results. No one will do things the same as you, of course.
For example: the best restaurants in the world don’t have the top chef cooking every night. The chef’s understand that they need to produce food that is of 70% quality to that of the expert.
You need to work smarter, harder, and hand over the jobs to people who aren’t as passionate as you, but will still get the work done.
5. Thinking That a Lack Of Money is an Excuse Of Lack Of Success
Many people think that they need money in order to become successful. While this is a true statement eventually, sometimes you just don’t start off with a lot of money.
A good entrepreneur is willing to go to all lengths to be resourceful and figure things out and if you can successfully avoid making the 7 mistakes that most entrepreneurs make in this article, there is no way that you’re going to run into problems. Think about it, in numbers one and two, people were running out and buying business cards and office chairs! You don’t need that. You just need heart to survive. You will need heart, dedication, and a true love for your business.
In just about every industry you can make money without having money up front.
6. Assuming that a business can be built or grown without incredible substantial effort
If you want you take your business to the next level you are going to work harder than anyone else you know and you are going to have work harder than you ever have in your life. If you are not committing to working hard or committed to relentlessly going after your goals then entrepreneurship is not for you.
7. Assuming that a business can be built or grown without incredible substantial effort
This is the one where we talk about Key Performance Indicators or KPI’s – You must establish them when the business is small. When you are a one woman or one man show, these are the things that will give you a gauge of how your business is going. The most common KPI is the bank account balance. Of course, this is how you know how well your account is doing, right? But unfortunately, there are KPI’s that come long before the bank balance.
Some other Key Performance Indicators are leads, offers, labor vs offer, etc. These are measured in a number of ways from weekly to monthly and some even hourly. It really depends on your business. Have you been in a business and have not tracked these important KPIs? It’s not too late. Start now, and always make it a mission to track these!