Community

Major Pitfalls for Entrepreneurs Causing Failure

Introduction For any business owner (especially a new one) the lurking fear of failure of the business is always present in the subconscious. The path towards success is a difficult one for a new entrepreneur, who must take several detours, and cross hurdles and potholes before they find themselves at a stage of stability and comfort. But even in that stage, the possibilities of failure aren't eliminated. Many start-ups work fine for at least starting two years for many entrepreneurs. The starting of a project may look bright and full of opportunities. The adrenaline rush is real of maintaining a high quality of creativity, motivation to move forward, and taking big steps towards the targeted goals. Even with all the things mentioned above, one might wonder why is that entrepreneurs still fail? What is the reason behind their abrupt failure? This is what we are going to focus on in this article. Major pitfalls for an entrepreneur to fail • Lose of interest Businesses don't fail when there's no profit, businesses fail when people lose their interest. When a person kicks off a business from the scratch, they put in extra effort to see it grow every day. They make a huge investment for a start-up. A business is all about having highs and lows. For an entrepreneur, he or she must stay strong-headed in the lowest of low during business growth. Many people lose interest in their work when they face constant lows. The worse days a business is seeing, the means it requires more effort to pull up. It is one of the major pitfalls which entrepreneur has to keep themselves save from. Instead of losing hope, they need to come up with a new strategy for problem-solving. • Cash management As an entrepreneur, a major factor that needs to be resolved before the business begins is how he or she is going to maintain the cash flow for the business. it's very rare or in lucky scenarios that a business starts profiting from the first day, it's begun. Most businesses take at least 1 or more years to profit, however, you can get a return on investment in the meantime. What entrepreneurs need to understand is the fact that a business can run fine without creating profit for at least a year, so you need to have a cash flow instead of it because, without cash flow, the business is bound to fail. • All responsibilities on one head Most of the time it happens that the owner of the business has to perform all roles of the startup by themselves. This is especially the case with a small business. with time when the business starts to grow as well, entrepreneurs forget that they need to give up on some responsibilities and focus on the new ones. When all the workload falls on one person, not only it decreases the person's productivity but also reduces their work performance to a great extent. The entrepreneur's responsibility should be to generate new ideas, strategies, and plans for expanding the business further, instead of tiring themselves with the excessive workload on their head. The mentality of 'Have to do all by myself' can sink your business boat. You can pass on the role to another responsible person and move along to a better role for yourself. • Expecting sales from close friends Many people tend to rely on close family, friends, and social circles for word-of-mouth marketing and purchasing. In often cases, people think that their close friends or family members will buy their products to help them out initially. This belief can make them lose their sight of having a great marketing and sales strategy. These expectations are only hurting entrepreneurs. You have to make a sales and marketing strategy to be in the limelight and to gain more sales. Many businesses that don't work on their promotion are at the risk of failure more than others. • Wrong pricing to compete Although discounted prices are a great way to attract more customers, especially when your product is better and less in price than your competitor, it can make your business gain some of your loyal customers. But that being said, underpricing your product for a long period in hopes of getting more customers will cause you to gain no profit at all. So instead of making money, you'd be spending more. In the longer run, it can hurt your business's financing. So make sure you have pricing with profitability. • No future vision If you have started a business just for the sake of starting it, then you might as well accept that it won't go any further. A business start-up is like a commitment that needs effort, hard work, and even after all that, hardships may come. When you have a plan, and you visualize your business growing, only then you can stay headstrong during the toughest of times. With no big aims or future vision, it is more like you are going to a road with a dead end. Endnote As an entrepreneur, it’s really important to surround yourself with successful people who have big aims and bright visions to help you change your mindset like them. Always planning for growth, and keeping up with your industry can help you generate more ideas to avoid failure in your business journey. And on top of everything, staying as motivated as you were when you started is the main key to save your business from falling into a pit of failure.