13 Reasons Why Entrepreneurs Fail to Succeed in Business

1. Lack of a well defined purpose

“Definiteness of purpose is the starting point of all achievements.” – W. Clement Stone

Lack of a well defined purpose is the major reason why entrepreneurs fail to succeed in

business. I have come across a lot of entrepreneurs living without personal purpose; not to

talk of business purpose. They have no dream, no mission, and no target. This type

of entrepreneur wakes up in the morning and say "let me go out and see what today holds

for me." They operate their business with no set goal.

If you take a closer look at these entrepreneurs, you will observe that their life is driven by

fate. They believe in luck and simply take whatever comes to them with this sentences "such

is life" or "life is unfair." These entrepreneurs have lost control of their destiny.

"Control your destiny or someone else will." – Jack Welch

I have a friend who happens to be an entrepreneur. He plays the lottery weekly, hoping to

hit millions one day. He goes to his business daily hoping that one day; he is going to make

a kill.

The funny thing is that he has faith that he is going to make it big but the problem is that

his faith and hope are channelled in the wrong direction. The truth is that entrepreneurs

like this friend of mine will never succeed in business. If they do, then luck is probably on

their side.

2. Inability to aim above mediocrity

Okay, you must have probably scaled through the first point; that means you have a set

goal, purpose and some North stars you are aiming at. If the situation described above

suits you, then I say congratulations. If you have a set goal, you are one step ahead of the

pack but a question I want to ask is this:

Are you aiming above mediocrity?

Is your goal challenging enough?

I am poised to ask this question because I have entrepreneurial friends who are goal

getters but the problem with this business friends and associates of mine is that they fail

to aim above mediocrity. Entrepreneurs in this category take their time to set goals but they

set small goals; they set goals they know they can achieve easily.

This may sound ridiculous but I want you to know that there are entrepreneurs with this kind

of mindset. They don’t want to fill guilty of not achieving their set goal; they don't want to

stress themselves or go beyond their comfort zone so their best bet is to set small achievable

goals.

An example of such is an entrepreneur with a current year turnover of $1,000,000, setting the

goal of achieving a turnover of $1,050,000 in the coming year. Now what stops

this entrepreneur from setting a turnover goal of about $2,000,000 – $2,500,000? The

answer is mediocrity. They don't want to pay the price for success; they don’t want to leave

their comfort zone.

"Those who dream small dreams, continue to live life as small people." – Rich Dad

If you are in the category of entrepreneurs described above; then it’s high time you change

your perception towards goal setting. If you continue to operate under the same perception

of setting small goals, you might not fail but you will definitely not be among the outstanding

achievers.

“Aim for the moon. If you miss it, you may hit a star.” – W. Clement Stone

3. Lack of self discipline

This is another undisputable reason why entrepreneurs fail to succeed in business. The worst

thing about an entrepreneur that lacks self discipline is that there is no remedy. He can never

succeed in business even if placed in the best economy. Discipline starts with self control

and self control is a product of a strong self imposed personal standard.

4. Procrastination

"Show me a failure and I will show you a man, who does today, what he should

have done yesterday." – Ajaero Tony Martins

I read in a book that procrastination is time’s natural assassin and I know that’s the

truth. Procrastination is as a result of laziness and strong resistance to leave

your comfort zone. But let's face reality, every one of us has at one time or the other

procrastinated. There is nothing wrong in that, but the evil comes when it becomes a habit.

5. Over Cautiousness

"He, who insists on seeing with perfect clearness before he decides, never decide."

– Henry Frederic Amiel

Over cautiousness is probably the utmost reason why entrepreneurs fail to succeed in

business. Some call it fear and others call it analysis paralysis but it all boils down to one

point; inability to take action despite tremendous proof. I have seen investors turn their

back to excellent investments simply because they are being over cautious.

I have seen entrepreneurs with the right business idea, the right plan and everything

needed to start but they just do not make a move. They are waiting for the

perfect economy; the perfect trend and the perfect time. They want all lights to go green

before they leap. The sad news is that in business, all lights never go green.

“It’s the duty of an entrepreneur to grab one piece and start the business, the

remaining two pieces will be found along the way. Finding the remaining two

components may take a year or more than 10 years; the point is, start with what you

have.” – Robert Kiyosaki

Successful entrepreneurs are known to start with what they have at hand and pick up the

rest along the way. The truth is that over cautiousness is the brain child of fear. An over

cautious entrepreneur is simply afraid of failure and no one plays a game with fear and win.

“Don’t fear failure so much that you refuse to try new things.” – Louis Boone

6. Lack of persistence

"Press on. Nothing in the world can take the place of persistence. Talent will not;

nothing is more common than unsuccessful men with talent. Genius will not; the world

is full of educated derelicts. Persistence and determination alone are omnipotent." – Ray

Kroc

Is persistence a requisite for success? My answer is a resounding yes. Successful

entrepreneurs such as Bill Gates, Ray Kroc, John D. Rockefeller and Henry

Fordemphasized the importance of persistence in building a business. If these successful

entrepreneurs are all pointing towards persistence as a key to success; then, it’s definitely a

must have to achieving success in business.

"Most people give up just when they are about to achieve success. They quit on one yard

line. They give up the at last minute of the game one foot from a winning touchdown." –

Henry Ross Perot

Lack of persistence is the primary reason why entrepreneurs fail to succeed in business.

Some entrepreneurs start their business on a very good note with high expectations but if

their expectations are not met, they get weary and just when they are about to

breakthrough; they quit and say "it doesn't work." They quit when just a little more

persistence should have made the difference between success and failure.

“You can always quit, so why quit now.” – Rich Dad

“Quit now, you will never make it. If you disregard this advice, you will be halfway

there.” – David Zucker

7. Bad business associates

“Be careful of the environment you choose for it will shape you. Be careful the friends

you choose for you will become like them.” – W. Clement Stone

Just as friends will either push you up or pull you down, the same is applicable also to

business associates. There’s not much to be explained on this because the lesson is clear. If

you take advice from non entrepreneurs or your most trusted friends are not entrepreneurs;

then your chances of succeeding in business is slim. No more, no less.

"Seek advice on risk from the wealthy who still take risks, not friends who dare nothing

more than a football bet." – J. Paul Getty

"It is better to hang out with people better than you. Pick out associates whose

behaviour is better than yours and you will drift in that direction." – Warren Buffett

8. Lack of focus

"The sun ray does not burn until it is brought to a focus." – Anonymous

I have come across entrepreneurs who are on a quest to create multiple streams of

income when they have not being able to grow a single business. Please forget the multiple

streams of income shit. Start a business and focus on it. Even if it’s your dream to own

multiple businesses; start with one and then diversify when you made it in that business.

"The wise man put all his eggs in one basket and watches the basket." – Andrew

Carnegie

"Concentrate your energy, your thoughts and your capital.” – Andrew Carnegie

Bill Gates worked on Microsoft for years; Warren Buffet did the same with Berkshire

Hathaway. Observe both men; multiple streams of income did not make them rich; a single

business did.

"The men who have succeeded are men who have chosen one line and stuck to it." –

Andrew Carnegie

9. Unnecessary Spending

"Watch the costs and the profits will take care of themselves." – Andrew

Carnegie

Most entrepreneurs spend money on impulse; they lack control over their personal cash

flow. If you cannot control your personal cash flow, I wonder how you can control that of

your business.

"The most important word in the world of money is cash flow. The second most

important word is leverage." – Rich Dad

"The philosophy of the rich and the poor is this: the rich invest their money

and spend what is left. The poor spend their money and invest what is left." – Rich Dad

10. Lack of enthusiasm

"Enthusiasm is the sparkle in your eyes, the swing in your gait. The grip of your hand

and the irresistible surge of will and energy to execute your ideas." – Henry Ford

I don't really know what to write about enthusiasm because it is self

explanatory. Enthusiasm is simply passion, self encouragement or zeal. No great business

can ever be built without enthusiasm on the part of the entrepreneur. If you are not

enthusiastic or passionate about your business; you will fail out rightly.

"Every tomorrow has two handles. You can take hold of the handle of anxiety or the

handle of enthusiasm. Upon your choice so will be the day." – Brian Tracy

11. Inadequate Capital

"Capital can do nothing without brains to direct it." – J. Ogden Armour

Cash flow is the blood of business. Inadequate capital can ruin a business; in fact, lack of

capital is the major reason why entrepreneurs fail. Entrepreneurs sometimes might come

up with winning ideas or strategies but lack of capital will hinder its implementation. There’s

a lot I can write with respect to capital but I will save the space.

“The primary duty of an entrepreneur is to raise capital. An entrepreneur must

continually raise capital from investors, customers and suppliers. If an entrepreneur

cannot raise capital; he ceases being an entrepreneur.” – Robert Kiyosaki

12. Lack of integrity

"It takes 20 years to build a reputation and only five Minutes to ruin it. If you think

about that, you will do things differently." – Warren Buffett

Above all things, your greatest asset in business is your reputation. Most entrepreneurs

fail to succeed in business despite the fact that they have sufficient capital. They fail because

they lack integrity. All over the world,investors, customers, suppliers are looking for

entrepreneurs they can trust.

“The most important thing in your business relationships is your reputation for honesty.

If you can genuinely and sincerely fake honesty, you will be a success. Never doubt it.” –

The Mafia Manager

Let me tell you a secret you don't know. With integrity, you can start a business with none

of your own money. Some entrepreneurs fail to deliver when given a credit line. As an

entrepreneur, you should preserve your integrity like gold. You must honor your words

and agreement; avoid shady deals and sharp practices.

13. Desire for instant gratification

"You know you are on the road to success if you would do your job and not get paid for

it." – Oprah Winfrey

This is a fundamental reason why entrepreneurs fail to succeed in business. They desire

instant reward; they want to get rich quick now. However, they fail to recognize that it takes

time to build a successful business. There is no short cut to success, you must give your

business time to grow and yield profits.

“Patience; it’s the most important attribute to creating wealth, it’s the greatest business

asset. Wait for the right time to make your moves. Let your business grow naturally, not

by pressing your luck.” – J. Paul Getty

"I never attempt to make money on the stock market. I buy on assumption they could

close the market the next day and not re-open it for five years." – Warren Buffett

As a final note, my advice to you is this; don't just read this article and dump it. Instead, read

it and analyze your life to see where you are lagging behind. Use this article as benchmark

to avoid business failure and I will see you at the top.