Quantcast
AlleyWatch Daily Pulse Email   

Why Entrepreneurs Fail: The 9 Killer Mistakes

 

As detailed in the popular infographic below, here are the 9 common mistakes entrepreneurs tend to make when they go into business.

  1. Wrong Choice of Business

First and foremost, choosing the wrong business idea will inevitably lead to failure. It is important to research the viability of any startup and decide whether or not the idea is the best option for you.

  1. No or Inadequate Business Plan

Similar to the age-old, grade-school writing theory of planning your essay before you actually begin writing—you must also plan and outline your business concepts before you actually begin working. Ignoring this stage will only hurt you in the long run.

  1. Lack of or Inadequate Experience

Unfortunately, you need experience in order to succeed at most things in life, and running your own business is no exception. Lack of experience in either the specific niche or in running a business in general is a major problem among entrepreneurs pursuing a startup.

  1. Lack of Passion

Passion is probably the most necessary quality for an entrepreneur. Without passion for your startup, it is surely a recipe for failure. When the going gets tough, it is passion for your business and product that will help propel you to success.

  1. Many Businesses at the Same Time

When entrepreneurs fail to focus on one good business idea and instead, jump from one idea to another. It harms all potential for each of those ideas. Ultimately this lack of focus will usually lead to the entrepreneur’s downfall.

  1. Competition

Not adequately analyzing the competition before venturing into a new business can also be extremely detrimental. It is key to understand the saturation of the market you are entering and be realistic about whether or not you have the capital and expertise to overcome your competitors. 

  1. Poor Customer Service

Excellent customer service is important for all businesses. It is the way businesses handle the negative situations they encounter that ultimately define who they are as a company—and it is even more important for startups competing with well-known and trusted companies. Ensuring that your customers are treated professionally is paramount to success in the entrepreneurial world.

  1. No Mentors or Advisors

This tip goes back to a lack of experience—in other words, you can’t have too much experience on your side. So take advantage of the connections that you have made in your entrepreneurial journey. Through the guidance of mentors and experienced advisors, you may avoid some costly business mistakes.

  1. Charging Too Little

Though many entrepreneurs falsely believe that lower prices are the only way to survive and beat out the competition, there are always other ways to gain a competitive advantage. Though this strategy may work short-term, it can lead to cash flow problems or business failure in the future. Analyze the situation, discover what differentiates you from your competitors and convince consumers that this is the reason they should give you their business.

Why Entrepreneurs Fail

Print Friendly
 

About the author: Megan Maneval

Megan is a graduate of Delta State University in Cleveland, Mississippi, where she received a B.A. in Communication Studies with a minor in Business Administration. She has completed internships in business and communications, and was the copy editor for the university student-run paper. Currently at AlleyWatch, Megan plans to pursue a career in copyediting.

You are seconds away from signing up for the hottest list in Silicon Alley!

Don't miss any of the stories shaping entrepreneurship. Sign up today.