From: My Own
2014 – 15 a new business year for all entrepreneurs, so before planning for the next year let’s have a small review about why most of the budding and growing entrepreneurs fail in their business. This article is just to reshape our views and vision about the business that we run today and the businesses that we are going to start in future.
We can see, most of the billionaires were started their business from a scratch and now they are enjoying the value of their brand and they are growing and growing, at the same time there are entrepreneurs who are burning out because of loss and frustration in the business.
So why entrepreneurs fail even though they invest their time and effort in their business..?
1. Survival Driven- (Trying to make money before creating value):- This is one of the most difference between successful and failed entrepreneurs. Successful entrepreneurs always give importance on creating value than making immediate profit.
Wealth is a result of consistently providing solutions to the problems of humanity. If you doubt me, go ask Bill Gates, Warren Buffet, Mark Zuckerberg and the likes. These are people who simply followed their passion (purpose driven) rather than following money (survival driven) and yet made a great fortune. (from Mr. Philip)
2. Lack of Business IQ (No proper planning and preparation):- The quest for making a business sometimes results in learning zero knowledge about the industry and the business. To grow a business the businessmen should learn day by day about the changing trends in the industry, people and the style.
I would tell an example: In a motivational training class, a man asked to the speaker “My industry is filled with bargaining customers and I could make only very minimum profit. So how can I make a better business..? The speaker told him you made a better profit in the beginning of your business but you were blind in analyzing the changes in the industry, you could have started a diversification when you felt the changes in the industry.” (Thanks to one of my clients).
This is sometimes happening, getting knowledge will help you to take right decision at right time.
3. Lack of focus (Wandering here and there): – This is the another difference, successful business people would have a focus and they invest their time and effort to nurture that special area. Take an example of Bill Gates, Mark Zuckerberg etc all those people have the focus.
“genius is the ability to focus on one particular thing for a long time without losing concentration.”
So when you start or run a business, try to focus on the area where you can excel and never go for a randomized business before you got a clear path.
4. Risk Averse (Fear of Failure) : – This is one of the most challenging thing. Successful business people are ready to take challenges, they see opportunities in every risk and challenges, and that is why they are remembered and successful. But failed entrepreneurs lack this quality
If you are passionate in doing business, you never mind you challenges, risk or anything, you will do it. So have a passion about your business. You can be free from risk averse by improving your business knowledge, passion and focus also by concentrating on the end result.
5. Poor Money Management (Extravagance) : – Manage your money, never let the money to manage you. Successful entrepreneurs are good in money management, they know where to invest and when to harvest their investment, like Warren Buffet’s words “Never invest in a business you can’t understand.”
Always remember that there are ups and downs, you should be prepared to meet the unexpected.
6. I can do well all by myself (Insecurity) : – There is a limit to what an individual can achieve alone, thus the need for team work. Successful people know what to hold and what to delegate, so entrepreneurs should encourage team work and you should act as a leader and a guide.
“Together Towards Success…” follow the line literally, you will enjoy the happiness and success.
So, you must get rid of any insecurity and every scarcity mentality you might have that someone is going to beat you to it. There are many things that are unknown to you, so you should seek help from your team, may be from outside consultants etc, this is how business grows.
7. Lack of Vision (The shortsightedness) : – “Vision is the reason for your existence”, never start or run a business without vision or with shortsightedness, the business will sink somewhere. The businessmen should be clear about his path and the end result, then only the business can move forward.
So, it is the high time that you need to have a vision for your business and life and let the vision shows the value that you are going to provide.
“Let the business speaks about you rather than you speak about the business…”