Records indicate that about 90% of all startups and entrepreneurs fail. Ten (10) out of the 90% are recorded to fail in the first year. In this article, we’ve taken the time to sample and figure out why most startups and entrepreneurs fail. Below are the findings;
1. Lack of Vision
A common problem with startups that failed was the lack of a clear vision. It’s not enough to have a business idea. Beyond that, you need a compelling vision. Your vision gives you a clear idea of where you’re heading to. Without it, you’ll lack direction and that will eventually land your business in the mud.
You must have a vision for the business you are establishing. Have a long term objective for the business.
You fail as an entrepreneur in the job market if you fail to have a vision for your business. Learn to document your vision; it’s your foundation and backing power.
2. Not Planning Properly
Many entrepreneurs fail have failed in their businesses because they fail to plan properly towards the business.
Most of these entrepreneurs take business-altering decisions based on public opinion. They fail to examine themselves and their startups to know what they can do themselves. They therefore enter into the job market without planning properly towards it.
Developing an action plan helps you to know what step to take at every point in your business.
3. Early Give Up
Many entrepreneurs lack patience. They usually venture into business without expectations. In the event that these expectations are not met, they give up.
For others, they lack the flexibility to endure the challenges that arise in the early stages. This ultimately causes them to fall out of business.
As an entrepreneur, you must be very optimistic about your business so that you don’t give up early. You need to be skillful to scale above the initial challenges and also learn to regulate your expectations.
4. Expanding Value Quickly
Many people fail in businesses as entrepreneurs because they rush to expand value instead of focusing much on one to sustain it properly.
Whatever business you start must have a grounding and a strong foundation before you seek to expand it.
Do not fall for the fantasies in your head as an entrepreneur without facing the realities. It is good to expand your business but it is even better to know when.
5. Not Enough Marketing
Most entrepreneurs especially in Africa lack marketing strategy.
What you ought to understand as an entrepreneur is that it is not enough to have a product or a service.
In addition to your products and services, you must know your target customer, their pain point, demographics and how to reach them.
The mistake of most entrepreneurs is in thinking that what they’re offering is meant for everyone. Even if you sell food, know that it is not meant for everyone.
As a marketer you should know that you can’t satisfy everyone.
As a way of marketing, you should also make sure you are totally unique from all that others are doing.
You fail as an entrepreneur if you lack effective marketing strategies.
6. Poor Customer Care
Many businesses have collapsed in Ghana and across Africa because of poor customer care.
How you see your customers to a larger extent determines the future of your business.
Do not see your customer merely as someone you sell to. Beyond that, establish friendly relations with them that will make them feel relevant.
As an entrepreneur or one who’s running a start-up, it’s important to know that, what matters is not the first sale. The most important are the ones after the first sale but the foundation of this is in quality customer care.
7. Lack Of Successors
Many businesses collapse because they fail to engage and train others in the running of the business so that in our absence they can take over.
As parents who have an established business, try your possible best to engage your children in the business affairs. Sometimes engage your children in the running of your company so that when you are not around the business can still thrive.