If you are a Successful Entrepreneur right now, you definitely would have faced one or two failures in the past. Perhaps, most of your startups have failed and the one you are succeeding at at the moment has failed a couple of times before.
It is not unusual to fail in business. But as long as you address exactly what has caused the failure, you are every step closer to a successful business adventure.
I believe these are the most important reasons why most businesses fail. I have enumerated them in no particular order.
1) Valuing IDEAS more than their IMPLEMENTATION: A Idea is worthless without calculated implemetation. If you think that the idea is all you need – you’re wrong. An implementation is much more important, not the idea.
2) Spending too much: Buying the things you don’t absolutely need is a killer mistake!
3) Bringing friendship into Business: Leave friends for personal communication, do not start a business with them. Create clear boundaries for your business and be firm with them.
4) Spending time selecting Employees yourself: It’s one of the most important. Start your business by hiring a recruiter. A good manager delegates everything he can.
5) Considering your Business as merely a way to make extra money: A startup must create useful service or a product. It’s purpose must be clear and understandable to the target audience and your employees. An inspiring vision is what distinguishes a successful startup from every other money-making venture.
6) Not Planning: You must understand exactly at what stage of development you will be in a month, six months, a year. Planning the crucial activities beforehand is essential and cannot be done once you begin to work 80 hours a week.
7) Impatience: Rarely does one succeed at once. You have to understand this and be ready to make one step at a time. Being truly passionate of the problem you are trying to solve with your product helps tremendously.
8) Lack of precision: If you think that your product or service is for everyone then it’s for no one. You need to select a narrow target audience. An excellent app for a Doctor can hardly be useless for a Cab Driver.
Read through the above points one more time and don’t forget to avoid doing them.