As an entrepreneur, you work hard and face many difficult challenges, and when your business fails to thrive, it can be very frustrating. This article discusses the top 5 reasons why success can elude the new business owner.
- Not Enough Startup Money
If you are starting a brick and mortar business, it’s essential to have enough startup money at the onset. Running out of money halfway through startup has ruined the chances of many a fledgling company. With an Internet business, this is not nearly as critical a factor, and you can continue to work your day job until your new business begins to make a good profit. Calculating startup costs doesn’t have to be a difficult process, but you must take the time to do the necessary research to get an accurate estimate of the costs involved in launching your company. One way to avoid having to borrow a lot of cash for startup involves starting a smaller enterprise for funding your larger, future business. Start small and bank your profits, with an eye toward funneling that money into a bigger business in the future. This is also a good way to learn firsthand just how a company operates and work the bugs out of your business practices.
- Not Enough Experience or Knowledge
It takes a lot of specialized knowledge to operate and succeed in certain fields, especially if there are a lot of legal rules and regulations involved, such as with the restaurant industry. Without sufficient knowledge of how to handle certain food products and other situations, major problems can quickly arise that can potentially shut down your business, end in a lawsuit, or both. It is not impossible to succeed in a business of which you have little knowledge, but it will certainly hamper your business progress and eventual growth if you are trying to learn the ropes as you go.
- No Budget
Setting up a budget and sticking to it can be one of the most important things an entrepreneur can do to ensure success for their company. As a business owner, you need to know where every cent goes, especially in the beginning when finances can be tight. A budget will allow you to track expenses and make intelligent decisions about where to spend your money, how much profit you are making, estimate your taxes, and where to cut costs. Without a budget, you won’t know where the money goes or how to stop cash leaks.
- Self-Doubt and Fear
These emotions are an entrepreneur’s worst enemies. Self-doubt and fear can keep you a prisoner forever if you allow it. Starting your own business and leaving your day job behind can be a scary process, but if you don’t take that risk, you will never become an entrepreneur. Once you have started your company, don’t let fear keep you from experimenting with new products and services or you run the risk of becoming stagnant and limiting your future growth potential.
- No Support Network
When you are in the process of launching your brand new business, it helps to avoid spending your free time with negative people that wish you nothing but failure. These negative attitudes are toxic to your success and can cause you to begin to doubt yourself and your plan, even causing you to give up altogether. Building a network to provide emotional support when times are tough can be your lifeline, giving you the strength and courage you need to continue on your entrepreneurial journey.
“Remember, wealth has nothing to do with money, success has everything to do with failure, and life is as simple as you make it!” – John Dessauer