There comes a time in the life of all of us, when we are fed up of all the monotonous routine of going to work and performing the same job over and over, which neither offers any hope for a better future nor keeps us interested. This is the time when most of us think of being our own bosses, starting a business of our own, and being in the category of the zealous entrepreneurs.
Every one of us is aware of the success stories of renowned entrepreneurs. However, very few of us are aware of the fact that beneath the cream of a few successful entrepreneurs, there is a debris of unsuccessful entrepreneurs, who took the leap without taking proper precautions, hence weren’t able to land on the ladder of success.
Being an entrepreneur is not just having a unique idea or dream, rather there is a lot that stands between an entrepreneur and his/her dream. The lines below give the five major factors that stand between an entrepreneur and the dream.
Lack Of Research
The biggest mistake that most of the employees make when they transit to becoming an entrepreneur is going into the market without proper research. Having a great idea is not sufficient enough for the dream to become reality, rather an entrepreneur needs to have an understanding of the market, and prepare an according to business plan to ensure that the idea transforms into reality and the dream comes true. Therefore, not doing proper research is the primary factor that hinders success and an entrepreneur.
The other obvious reason why the dream of an entrepreneur does not transform into reality is insufficient capital. The most successful entrepreneurs will tell you that most of the unsuccessful entrepreneurs have very limited capital which only suffices the short term needs of the business. What these entrepreneurs forget is that the business has to go on in a long run, therefore, it is all a matter of time that their insufficient capital runs out and they have nothing left do then to pack up everything. Therefore, in order to be successful in an entrepreneurial venture, you need to have sufficient capital to sustain the needs of the business in the long run.
Lack of Understanding Of Business
There is no end to the imagination and an idea of any type can strike anywhere to anyone, however, it’s the conversion of this idea into a reality that matters, and for that, a budding entrepreneur needs to have an understanding of business and its processes. Thus, the lack of knowledge of business processes is another reason behind the failure of entrepreneurs. Being the owner of the business, an entrepreneur needs to have an understanding of the running costs, the assets, liabilities, marketing, inventory and so on to be able to better manage the business and make it survive in the long run, hence an entrepreneur must acquire business knowledge for better management.
Wrong Marketing Strategy
It is evident that to make a name the business has to devise a marketing strategy. Selection of wrong marketing strategy is another reason that causes the demise of entrepreneurs. The marketing plan for a food outlet cannot work for a mobile app development service idea, therefore, it is imperative that an entrepreneur realizes the importance of marketing strategy and select an appropriate strategy that effectively propagates the idea and helps in developing a brand.
The chain is as strong as its weakest link, this saying holds true to all the entrepreneurs who rely only on their abilities and give little importance to the people in their team. A business venture with such an approach is deemed to fail. All the entrepreneurial ventures comprise of small teams, therefore, the successful mentors will emphasize on the fact that each and every member of the team must be selected with utmost caution. If an entrepreneur has a wrong team working under him/her, the venture won’t last long and the entrepreneur will have to decide between keeping the employee or keeping the dream alive. Therefore, the right employees should be hired in the first place.
Now it’s Your Turn!
I have shared what I have observed and read about unsuccessful entrepreneurs. Do you know any? According to you what was the reason for failure of the particular entrepreneur? I wait to hear your thoughts on the topic and feel free to share your experience in the comments section!