Why entrepreneurs fail – this is the question everyone wants answered. Entrepreneurship is a greatly rewarding field; however it is full of challenges and obstacles. Knowing why they fail will help you adapt to the possible surprise challenges you might encounter along the way.
Professionals in the field of Business Development have slowly adopted entrepreneurial attitude in order to succeed in their field. They have learned to think like entrepreneurs. This has allowed them rise above. By thinking differently, they have learned why entrepreneurs fail and how to solve these challenges.
According to these business development professionals, there are various reasons why they fail. To cite just the most obvious ones are the lack of capital, the lack of understanding about marketing techniques, and personal issues they have to resolve within themselves.
In my opinion, below are the top three reasons why entrepreneurs fail.
- They do not understand that business success or failure is not reflective of their self-worth.
- They neglect to create realistic goals and plans for their business and for their personal lives.
- They fail to commit by not being able to prepare for the price of success.
However, true entrepreneurs have learned to stay away from these attitudes but instead, adopted the right thinking.
Solve the Question of Why Entrepreneurs Fail by Understanding the Adage Roles, Goals, and Tolls
Why Entrepreneurs Fail #1: Roles
If you truly want to be a successful entrepreneur, you must learn to separate your life-role to your self-identity or your self-worth. Your success and failures in your business venture is not a reflection of your individuality. If you truly want to understand why entrepreneurs fail, you must understand that judging yourself based on your ventures is unnecessary and counterproductive.
Entrepreneurs who are likely to equate their self-worth with the success or failure of their business are likely to maintain the norm. If you are able to differentiate your role in your venture and your role in your personal life, you will be able to also differentiate risk prone versus risk-adverse; and this is a key ingredient to your entrepreneurial success.
If you have once in your venture-life, failed, you know how to get out stronger out of it. You not only learned how to separate your roles, but you have also learned lessons on risking and failing. Start-up businesses are prone to risks, this is only natural. Embrace these experiences and learn from them. Moving on from these obstacles will help you succeed in entrepreneurship. Face your problems and deal with them, and maybe you won’t ever have to deal with problems of why entrepreneurs fail.
Why Entrepreneurs Fail #2: Goals
Goals and plans are such important factors in the success of your business. However, successful goal setting is not always about the plan itself, but the planning necessary to achieve that plan. The whole planning process allows you to develop confidence on how to face success and failures. The reason why entrepreneurs fail is because they focus too much on having a perfect goal that they forget to learn anything from the process.
To be a successful entrepreneur, you must not only be goal-driven, but you must also master the art of executing the process of strategic goal setting. Failing to visualize goals and put down these goals into a detailed plan for entrepreneurial success is another reason why they fail. As an entrepreneur, you should have goals and plans in the important roles in your life, not just in your ventures.
A reason why entrepreneurs fail is because they fail to see that they are not creating their own destiny. IF you see yourself being part of someone else’s goals and plans, while you’re stuck with no goals of your own, then you’re bound to fail. Choose your own destiny, map it out, be fearless, be adaptive, and eventually, you will succeed.
Why Entrepreneurs Fail #3: Tolls
Finally, one of the reasons why entrepreneurs fail is because they do not understand the toll they have to pay in pursuit of their success. Successful entrepreneurs know the risk and they are ready to pay full price for the benefits. It’s a long process, it’s not a simple dinner party; “overnight” success for real entrepreneurs can take up to 2 decades.
Failing to adjust with tolls is a reason why entrepreneurs fail because entrepreneurs are often forced to always reinvent themselves. Most people are comfortable just staying in their niche, but with successful entrepreneurs, moving on from a different group of associates to another, is part of the journey.
Step out into the unknown, be your own person, but don’t attach yourself too much on this identity. Old relationships can consequently, also be stressful. Differentiate your roles from your self-worth, identify risk-prone areas and avoid them, adjust and adapt to change, overcome obstacles, stick to your goals but be flexible as well. The greatest reason why entrepreneurs fail is their failure to prepare for the incoming tolls.
As an entrepreneur, you have much to learn. There is the everyday operating and managing processes, creating and innovating of products, delivering service, producing profit, and dealing with your customers. But most of all, you have to know and understand yourself as an entrepreneur and as a person. Know what you want and what motivates you, sustain your passion, hold on to your goal and you will succeed.