The 10 Main Reasons for Business Failure
Building a business is easy if you know exactly what to do.
However, I find that most new business owners have the wrong ideas about starting and growing a business. In this article, I will show The 10 Main Reasons for Business Failure. Share this with anyone who wants to become an entrepreneur:
1. Wrong Intention: A large number of people start a business just for money. They see people as profit and put a price tag on every person they meet. Others have the wrong motivation in business, which ends up hurting more people than they help. For instance, they want to start a business to take revenge or prove others wrong.
These people are motivated by greed, envy, guilt, shame, lust, anger, and pride. They should be motivated by love, justice, hope, gratitude, kindness, generosity, and joy. Consider your emotions and ask yourself, "How am I motivated?" Finding out the truth to this question can help you to unlock your deepest potential.
Some people have the right direction, but the wrong intention.
2. Wrong Plan of Action: Because entrepreneurs need to make a multitude of decisions, many of them fail to prioritize strategically. They are checking the mail when they should be making sales. They focus on small tasks when they should be acting on greater ones. They pursue minors when they should produce majors.
A strategic business owner will ask, "Which project should I work on first?" They succeed because they work on the most important tasks to get their business moving faster. A haphazard business owner will ask, "How can I squeeze everything in today?" They fail because they try to do it all at once, instead of discriminating the priority of each goal.
Priority is doing first what matters most. -Daniel Ally
3. Limited Resources: There's a lot of new business owners who have disadvantages. For instance, a Nigerian man wrote me and claimed to walk 50 miles barefoot to get internet connection in order to contact me for mentoring. Obviously, he lives in the wrong place to start a great business and lacks access to the necessary tools in order to gain prominence in any industry.
However, some people cling to the excuse of not having adequate resources. Most notably, they believe they cannot succeed because of a lack of money or connections, but in reality, they have everything they need to succeed. Truthfully, the majority of people who believe they can start a business will have every resource provided for them in their life-span, therefore, having a profitable business is possible.
It's not your fault if you were born poor, but it is your fault if you die poor.
4. Thinking Small: Business owners who think small will fail. I've seen so many entrepreneurs with dysfunctional websites, crummy business cards, and blurry headshots. They end up 'doing it on their own' and suffer the consequences. Sure, they might save a couple hundred dollars, but they're losing thousands of dollars in the process.
To be a successful entrepreneur, you've got to think as big as possible. You cannot limit your dreams to the reality of your current lifestyle. You've got to believe in your plan and work steadily toward attaining it. This means that you'll need to hire the necessary employees, upgrade your wardrobe, and constantly tweak your brand.
If you put everything into your business, you'll get more than everything out of it! -Daniel Ally
5. Too Much Structure: Some people want their business to be perfect in every way, which can slow them down in the beginning stages. I've seen people take years to create a business plan, which they never got to use. They complicate business to the point that it becomes more theoretical than practical.
Over-planning leads to procrastination. Your plan has to make sense, but it also has to be flexible enough to adjust along the way. When starting a business, it's difficult to predict what kind of challenges you will face. However, it is important to adapt to the patterns of your business. Structure is important, but flexibility is more important.
You can't make dollars if you can't make sense. -Daniel Ally
6. Lack of Skills: Before starting a business, you should have a reasonable set of skills. Your skills will either make you or break you. Most business owners are incompetent and barely know it! They think they're good at what they do, until they face the customer. You must get better at what you do so you can deliver value to your customers for a fair price.
There are many skills that a business owner needs: sales, marketing, decision-making, time-management, negotiation, etc. While you may not be exceptional at all of these skills, it is wise to surround yourself with those who are. Putting your combined skills to use can help you build a fully-functioning team, which can help you deliver amazing results.
You need the skills to pay the bills. -Daniel Ally
7. Quitting Too Early: I've witnessed countless people who've quit before they've even started! They did everything necessary to get their business up and running, but lack the stamina to keep on going. Without warning, they break down physically, spiritually, emotionally, and/or financially. The pressures get the best of them and they quit their business.
Some people have everything in place, except their mindset. One adversity knocks everything out of order and they lose momentum. To combat this, you need a strong support system from your friends, family, fans, and colleagues. You must constantly find new ways to stay motivated, even when times get tough. No matter what, never give up on your business!
Adversity is your ticket to greatness! - Daniel Ally
8. Lack of Proper Training: Many new entrepreneurs pursue a path of action without understanding the basics. They launch their business without knowing what to do. They have basic ideas, but haven't fully prepared themselves to start and grow a business. Often times, they end up getting stuck because they don't know where to turn or where to go.
To gain proper training, you must devour books, articles, videos, and speeches. You must study and find a mentor within the industry. Hiring professionals to teach you the basics is imperative to succeeding in business. Be sure to obtain the right training and feedback necessary to advance your current status. Always have a working knowledge of the subjects you are dealing with.
Always know everything about anything you're doing. -Daniel Ally
9. Lack of Clarity: Without knowing where you're going, there's no way you can get there. Business owners who 'just want to be successful' will never make it big. You must first define what success means to you and do what it takes to attain it. You must cultivate a vision and get rid of all distractions to reach your highest goals in business.
A clear mind will give you the avenues to wealth and happiness. Clearly defined goals can usually be constructed with wise business planning. For instance, setting daily, weekly, monthly, and yearly goals is the first step to gaining clarity. If you can see realistic steps to actualizing your vision, you will exceed all of your goals.
You can't get anywhere if you don't know where you're going. -Daniel Ally
10. No Action: Moving slow can kill any entrepreneur. You need momentum if you want to make it in the marketplace. Procrastinators will have no place in business. I always hear people saying, "When my kids graduate, I'll take action." They keep delaying and think they will be ready eventually. You must take action now.
Ask yourself this question, "What did I produce in my lifetime?" If the answer is 'nothing,' it proves that you haven't done enough. Seek ways to create new products and services for the world. Go out there and do something special. Stop waiting for opportunity to come. It's already here. Now it's time to make it happen!
Stop conforming, start performing! -Daniel Ally
Thankfully, all of these reasons can be overcome with dedication and persistence. If you're going to make it as a business owner, make sure you check this article over and over again. Constantly upgrading yourself will help you to improve your position in the marketplace and help you dominate your industry!
For business coaching, contact me at www.danielally.com