Nobody starts a business wanting it to fail. So why do entrepreneurs have great ideas, launch businesses, get excited, only to close their doors shortly after?
Here are a few reasons why most startups fail:
When you don’t plan
Failing to plan is planing to fail. When you find the idea that makes you want to start your business, it is important to plan. Planing means sitting down and think. Scientist Albery Einstein said
Thinking is hard work; that’s why so few do it.
It is not enough to have an idea. You must figure out how to turn it into a reality and in a way that will generate money. Before launching take the time to write a business plan, to brainstorm, to share with mentors, to modify and adapt.
When you wait till everything is perfect
If you wait for everything to be perfect, you will never start. Planing is crucial but it is also important to understand that you will learn along the way. You will make mistakes and you will probably need to make some changes but you will never make progress until you start. When you wait for things to be perfect you might miss out on some great apportunities, loose potential clients and leave room for your competitors to win the market. The thing is, when you have an idea, other people are thinking of the same thing. It is important to plan but also very important to act.
When you want easy money
When you start a business to get easy money, you are most likely setting up yourself for failure. Most startups take time before they reach success. It is important to focus on client retention, branding, and being stable before focusing on profit. Money will come but you need to make sure your source of money (your clients) are going to use your service on the long run. Start small, build your clientele base and the rest will follow.
When you do not have a sense of purpose
Starting a business needs to come from a sense of purpose. When you know why you do what you do, you will not be easily discouraged. Starting a company can be really hard so you need to have a source of motivation. Before starting, ask yourself why you are doing it. John C. Maxwell, in his book HOW SUCCESFUL PEOPLE THINK , said that before he can make his idea land (taking action), he asks himself:
- If he believes it
- If he lives it
- If he thinks people should follow it.
And he adds that until these 3 points align, he considers that he hasn’t landed the idea yet.
Have you taken the time to study your floating idea before it could land? Have you taken the time to ask yourself why you do what you do? If not, it might be a good idea to take some time to do it. If you want your startup to succeed, it is important to find your WHY.
When you do not study your market
When a business doesn’t know its clients, chances of reaching success are low. Take the time to study your target market. There are many tools available to collect information you might need: online surveys, market ressearch archives and more. Take the time to study, observe and really see if your product or service will be well received by your targeted audience.
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