There are numerous reasons why entrepreneurs fail but I will only mention ten reasons that are common among the reasons entrepreneurs fail.
Entrepreneurs fail for lots of reasons. Some, because of controllable factors while others are because of uncontrollable factors.
In this article, I will walk you through ten reasons why entrepreneurs fail. Though it is hard to be an entrepreneur but, with the right skills and knowledge, you can scale through.
1. Not Smart Enough
It is not a gainsaying if I say many entrepreneurs are not smart enough. Many entrepreneurs do not know where to pitch their tents likewise, some do not know which market will accept or reject their ideas.
Many have good ideas but only few know how to make the idea materialized and this has jeopardized success of many entrepreneurs.
Likewise, some did not know how to key into innovation and how the uncontrollable and controllable factors affect their business growth and who their customers and competitors are.
The worst part is that some of them do think they are doing good jobs while what they are doing is terrible works that can bring them down. If an entrepreneur is incapable of seeing what everyone else sees, he or she is blind to success.
2. Not Knowing Opportunity
Entrepreneurs often fail because they cannot separate the good from the bad. Often they fail because they do not know who they should work with or stick with and those they should let go. I have seen this situation in many places.
Also, in most cases, entrepreneurs fail because they fail to recognize who is who and opportunity in their field. A lot are even sitting on the diamond but they do not know.
The bedrock of any organization is fund or capital. Without this, it may hard for any entrepreneur to triumph in business. So, entrepreneurs often fail because they cannot raise the right kind of funding at the right time at the right valuation. Entrepreneurs fail because they do not know how to value their company or phase investments along with timelines designed to optimize valuations.
To succeed as an entrepreneur, you must be able to rake in more funds or capital for the day to day of your business and the better you can do this, the better it will be for your establishments to scale through.
4. Greediness and Wrong Assumption.
I have seen many entrepreneurs who are very greedy with wrong assumptions that they will change the world by believing in miracles.
Yes, it is good to believe in a miracle but it is not the best way to run enterprises because you have to do the necessary things needed that can make your start-up or enterprise scale through.
I believe in a miracle but I always emphasis taking action and shunning greediness.
5. Lack Of Entrepreneurship Skills
Entrepreneurs often fail because of entrepreneurship skills they lack such as managerial skill, accepting responsibilities, insecure, short-tempered and intolerant of opposing opinions, legal knowledge, accounting, financing, budgeting and the rest.
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Anyone who wants to succeed as an entrepreneur must work on his weakness and adapt quickly in his industry before it is too.
6. Bad Network
Good entrepreneurs have a purpose-filter through which they select their network or team. They know that it is not everybody they can work with or hang around with or listen to and therefore, they chose their network or team carefully just like a team coach chooses his team.
Before they accept anyone into their network or team, the first question they first ask is the partner really worth to be part of my network? Entrepreneurs who fail in this category do not have this purpose-filter.
Entrepreneurs often fail because they hang out with the wrong network or have wrong members in their teams which could be their colleagues or friends or staff who always agree with everything the entrepreneur says.
So, watch your team and network very well and choose rightly.
7. Ineffective Sales
Effective sales will leads to more revenue. The more an entrepreneur can sell the more revenue he will rake in and as we all know too, entrepreneurs often fail because they cannot sell to the right clients at the right time for the right price.
Another thing is that the majority of entrepreneurs are only competing in their fields by having a good logo, good business name and slogan, branded outfits, professional call cards or business cards, good business environment and the rest but not making good sales.
Making good sales should be your number one factor you need to succeed in business, if your enterprise is not making good sales, failure will be inevitable.
8. Market Invisibility
The truth is this, if they cannot find you, they cannot buy you.
When your business is invisible, it is a bad sign.
Entrepreneurs often fail because their companies are invisible to the world. They thought they cannot bear to spend money on marketing and PR.
Polishing products and services until they shine brightly in the sunshine is a waste of money. Smart entrepreneurs get the word out early and often via all available media, especially digital media.
9. No Preparation Against Unpredictable
The truth is this, entrepreneurial events or conditions are unpredictable and you must prepare ahead to avoid been chase away when the situation arises.
Entrepreneurs often fail because they cannot adapt to unpredictable events and conditions. All start-ups require preparation against the unforeseen situations that may arise.
10. No Sense of the Inevitable Exit
Entrepreneurs often fail because they cannot gauge their ultimate exit relatively early in their journey. Call it instinct or judgment, the range of exit outcomes begins to reveal itself once the products and services hit the market and once the source and pace of competition clarifies.
Good entrepreneurs have a sense of how an exit will occur (if one occurs at all) within a year of their launch and bad ones believe in miracles.