Entrepreneurship is now a buzz word. According to Forbes, over 543,000 new businesses get started every single month.
I know from personal experience the challenges of entrepreneurship in the 21st century. My business nearly failed on three separate occasions. I was flying through money at an alarming rate, my sales were dismal and my business was sinking fast. I knew in order to be successful I had to make a major shift.
I learned so much about business during that time.
So many entrepreneurs jump into business without having a solid foundation (i.e., the fundamentals of entrepreneurship). What I know is that, without a foundation your business is destined to fail. Start with solid groundwork and you can live your business dream!
Key Reasons Businesses Fail
1. False Expectations
I believe this is the number one reason that businesses fail. We start a business with great aspirations, but we don’t have a clue about the attention we must give our businesses to be successful. I was guilty of this too. We think the phone is just going to ring. Customers are going to magically appear.
Profits don’t just flow into a business—you have to be productive. If you are not making calls, following up, marketing and perfecting your sales skills , then your business will not be successful. We are not rewarded for dreaming. Your reward in business will be contingent upon your diligence.
2. Lack of Mission.
One of the greatest skills you can ever possess is the ability to communicate your vision is such a way that it attracts the resources and attention of others. Most people don’t have a clue how to communicate what they do. If you are not able to articulate the value of what you offer your business will suffer.
A business that lacks focus will not flourish. Be sure that you have a clear vision and mission statement for your organization. Don’t be vague. Make it clear who you are and what you do. This detail can determine the success or failure of your business.
3. No Unique Value.
Before you act on your big idea too fast, sit down and assess whether your business can provide unique value in the market. Many entrepreneurs attempt to enter saturated markets with no real business strategy. If you plan to go into a market that is saturated, first design a business model that will differentiate your product or service.
If you cannot put a spin on what is already being offered in the industry your business will not produce. You have to find a new angle if you want to achieve success in saturated markets. Connect with customers and do some research. If you can find a need that is unmet you’ll uncover a market that is untapped.