The dream of every entrepreneur is to succeed with his business. However, success is not available to everyone. The proof is that 90% of start-ups fail during their first years of life . That is why it is important to know how to interpret the signals that point to a possible business fiasco. These are some of the main reasons why entrepreneurs fail.
These are the reasons why entrepreneurs fail
There is no market . Some entrepreneurs insist on seeing a business opportunity where there is none, sometimes because the competition is huge and others because the demand for the product is very small. That is why it is very important to make a SWOT analysis with which to make sure that there are real possibilities of sale in the market for the product or service that you want to sell.
There is a rush to invoice . The rush is one of the main enemies of any entrepreneur. The newly created companies walk slowly and their first results are slow to arrive. If it is undertaken in a hurry and wanting to bill quickly, it is most likely that things are done badly and that the company ends up failing.
There is not enough capital . The accounts have to be done very well in order to be clear about the capital needs of the business during the first months of life. In addition to the initial investment there are other current expenses that will have to be taken on a monthly basis, such as rents, employee salaries, receipts or insurance.
There is no business plan . A well-structured business plan will allow planning the tasks, assessing the needs of the company and, in short, project the first steps of the business . The absence of it implies undertaking blindly, without order, without goals and without strategy.
Bad publicity No matter how good or how innovative it is, the clients will not arrive alone at the company, especially in a market as saturated as the current one. That is why it is so important to design a good marketing campaign , with a strong budget behind, that will make the business known to potential customers.
They surround themselves with the wrong people . If an entrepreneur surrounds himself with inefficient people, his business will fail. No relatives or friends during the first years . Nor low-skilled or mediocre employees to pay lower salaries. The entrepreneur must surround himself with people smarter than him.
There is no commitment . Many times it is the lack of commitment, the lack of effort, the lack of desire to work or make sacrifices that leads to the ruin of the company . Entrepreneurship is not a path of roses and if there is no serious commitment of work on the part of the entrepreneur, things will not go well.
Lack of leadership Sometimes the commitment is enormous and the desire to work also. However, lack of leadership and decision capacity. This generates conflicts within the company and demotivation in the employees, which inevitably undermines productivity and slowly drags the company to the bottom of the abyss.
If as an entrepreneur you want to increase the chances of success of your business you must take into account these points that you have just read.