Why most “Entrepreneurs” Fail and How to Succeed

| October 8, 2012 | Comments (2)

entrepreneur-fail

It’s been said that “there’s no worst boss at times than working for yourself”.  Interestingly enough, this saying does indeed hold some water and merit. Most Financial gurus out there would tell you that you won’t ever get ahead or get wealthy if you don’t start working for yourself and own your own business.

 

At the same time, there is some truth to this, but if you’re someone about to go work for yourself, it would be wise to read on.  I’d like to review and recommend some things for you before you would make that big leap as your own boss and Entrepreneur Success.  There’s no freedom like working for yourself, but sometimes working for yourself can be the most daunting thing if you only just created another ‘J.O.B.’ for yourself instead of a real business.

 

As someone that’s run a few businesses now, I know what it takes to succeed and have learned from failures along the way.  Most entry level entrepreneurs tend to want to shy away from failures and live within a type of comfort zone.  They also tend to suffer from a very serious lack of focus on concentrating on the right systems and business that would allow them success. 

 

There’s a type of entrepreneur A.D.D. that goes around with a lot of entrepreneurs in that they want to do everything under the sun.  E.G. They would like to run their main business – a magazine stand, but they’d also like to run an ice cream truck and so on and so on…

 

This is insane behaviour, which you’d be much better off to model successful people, do what they do, become successful at it - then rinse and repeat.  There’s a whole list of issues why most entrepreneurs fail, but here’s a list of what I see as top reasons below, so pay attention:

 

 

10 Reasons Why Most Entrepreneurs (Businesses) Fail

 ·         They are usually Under-Funded or Under-Capitalized

·         The Owner started the business for the sole reason of chasing money rather than their passions.

·         Lack of Real Planning or a Business Plan

·         Failure to secure and learn from a mentor

·         Serious Lack of Focus to Succeed (jumping around)

·         Not creating Systems that support the Business

·         Doing too much by themselves.  Not letting go of processes that should be handed over to staff instead.

·         No web presence (web site).  Not having a presence on the internet so that people find them easier and acquire new customers via the web.

·         Bad accounting or not knowing the numbers.  This is pivotal and required knowledge for most businesses to succeed.

·         Bad customer service.  Although not always a deal breaker, too much terrible customer service can bring a business to it’s knees and customers to not come back. 

 

I remember reading a phenomenal book my Michael Gruber a few years back called the E-Myth Revisited.  Most want-to-be entrepreneurs would do well to read this entirety and also to practice what they’ve learned in the book. 

 

In a nutshell, Gruber calls on systems that businesses must apply and adapt into their businesses – think Ray Kroc with McDonald’s e.t.c.  There are way too many new entrepreneurs that jump into business and still end up doing the ‘Technical’ part of the job which in turn is not running a business. 

 

For example, take a graphic design artist that works for a big firm that takes the leap and starts his own business.  If he decides that he will be the graphic design guy for his new business and fails to take into account marketing, sales, profits, accounting and so on that go along with the business, he’s not really running a business. 

 

Instead he’s just created another job for himself with not a whole lot of leverage that you need for a successful business.

 

I highly endorse and grabbing a copy of Gruber’s E-Myth Revisited book if you haven’t already.  It’s a great primer to getting into business and running it the right way.

 

I also recommend to work under a great mentor if you can find one that already has a successful business they’re running.  Learn from them and model that success.  Too many people try to figure it out on their own and fail, don’t be one of the stats.

 

I hope what I’ve shared here has opened your eyes if you are planning on starting a business or even if you’re a failed entrepreneur or a successful one.  These are tried and proven ways to succeed.

 

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Category: Entrepreneurship, Financial freedom

  • Lisa O

    “They also tend to suffer from a very serious lack of focus on concentrating
    on the right systems and business that would allow them success.” Which businesses or systems? I am curious to know where I should start, the first steps to take, etc. Also, any advice on finding a mentor?!

  • dwightanthony

    Approve.
    Sent from my BlackBerry® wireless device from LIME.