13 reasons why entrepreneurs fail to succeed in business
Post on 02-Apr-2015
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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.
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