For me, entrepreneurship is a way of life it can offer limitless possibilities. However, most entrepreneurs fail. Why is that?

Here are 7 Indicators of entrepreneurs who are doomed to fail. Take your time to go through the list, be honest, does your business display any of the signs listed?

I have written this article not to scare or panic you, but rather to alert you. We all need to take stock, analyze and accept constructive criticism in the knowledge that quick action can avert your dream from going up in flames!

Monumental Expectations

Entrepreneurs who fail often do so because they are inundated with Rags to Riches stories and bombarded with social media all telling them how to get rich quick. They fail because they often live in a world of fantasy, believing that they’re just a sale away from revolutionizing an industry and becoming filthy rich.

No man is an island

A famous quote by John Donne in 1624. It means humans can not get along with their lives alone and succeed. We are all dependent on other people and we need them. There is a limit to what an individual can achieve alone. The entrepreneur is on the path to failure if he will not empower others nor seek the help of others for fear that they might outshine him/her. Great things are seldom achieved alone.

As an entrepreneur, it’s very important you understand that whatever it is you have in your mind to create it will never be entirely yours to control, you are only a vessel through which an idea, innovation or product/service is being launched.

So, you must cast aside any insecure feelings that someone is going to beat you to it. The more insecure you are and the more you keep refusing the help of people better qualified than you in certain areas, the more you endanger the chance of that idea, innovation, product or service ever becoming a reality.

Low visibility

Pilots talk of the problems associated with low visibility approaches to runways. But to Entrepreneurs visibility should be equally important. They often fail because their companies are invisible to the world because they cannot bear to spend money on marketing and PR. This is a huge mistake that some entrepreneurs make when the going gets tough and finance is in short supply. You need to get the word out early and often via all available media, especially digital media: if they cannot find you, they cannot buy you. The internet is your friend. Check out www.zzap.com, here we have created an excellent platform to display our products. A poor website is a well-trodden route to failure.

Reluctant to take Risks

The fear of failure is another reason why entrepreneurs fail in business. It doesn’t matter what business you are in, whether it is popular or cool or sexy. What matters is that it mattered enough to you that you are willing to do whatever it takes to make your idea become a reality.

An entrepreneur must ignore the current fashion, must be brave when others doubt, cast aside the fear of failure, being laughed at, losing money, being called crazy, etc. You need to look your fear in the eye and step out in spite of it. Don’t allow fear of failure to hold you back, face up to fear and the death of fear is certain.

Unsuccessful Sales

Entrepreneurs often fail because they cannot sell at the right price to the right clients at the right time. Start-up sales are totally different from the sales that established companies enjoy a week in week out. Good entrepreneurs understand all forms and processes, how to sell to the right early customers. Entrepreneurs who fail, short change sales in favor of competing activities, such as R&D. Be prepared to sell at margins well below what you would normally expect in order to get your product/service known and respected. It is a common mistake to overvalue your dream.

Bad Partners

With this, I mean bad for business, not in a social sense. My business partner and I have been developing and growing ZZap since its inception in 2010. We both share the same vision, but crucially we have different strengths and abilities. When we don’t see eye to eye we discuss, adapt, change and ultimately come away with a more robust business plan for the way forward. Be wary of colleagues who agree with everything you say. Recommendations from people that do not share the same values as you and are unfamiliar to you, partners who use you to channel their own sales, lawyers that rack up unnecessary fees and gurus that know just about everything about anything. So ask yourself “is this partner really worth my time? 

Too Much Competition

If you do not have any competitors then maybe your idea is out of the market. However, too much competition can kill a business because your team cannot cope.

When I started ZZap a cash handling company there were many players in the market. The only way we succeeded was by being the best. This may sound arrogant, but to succeed in any crowded market you need to be “simply the best”. Oh, how nice it would be to have an idea that no one else has thought about. But the reality is that most successful businesses are just old ideas given a new twist or small incremental improvements on current products.

 

Published by Andy Margison