When you’re just entering into the world of entrepreneurship, it can be easy to feel like all you need is a solid business plan to succeed. However, once you actually start to realize how many steps and tasks are involved in launching a successful startup, it quickly becomes apparent why so many would-be entrepreneurs have tried and failed in their first endeavors.
More specifically, here are four reasons why new business owners almost always experience failure in some form or another.
1. Lack of Formal Education.
While there are many entrepreneurs who are purely autodidacts (self-taught), that approach doesn’t work for everyone. Furthermore, even those who did rely on their own research will tell you that they failed their fair share of times before they became the successful businesspeople they are today. There’s nothing wrong with learning on your own, but to increase your chances of success out of the gate, it would be wise to enter the game with a formal education.
If you really want to equip yourself with the knowledge needed to competently manage a business from the start, you may want to look into online accredited MBA programs to earn your masters in business administration before you launch your first company.
2. Not Considering All Variables.
Failing to take certain challenges into account in advance can lead to situations that are difficult to recover from. Process mapping is one technique you can use to map out the exact duties and procedures that will be involved in maintaining your daily operations, which will help with planning a schedule and estimating payroll expenses. Likewise, budgeting from a pessimistic perspective (preparing for the worst) is a good way to safeguard yourself against mishaps that could lead to significant losses in revenue or productivity.
3. Insufficient Discipline.
Most entrepreneurs have at least some concept of discipline or at least the ambition needed to develop such a mindset going forward. However, many also underestimate the amount of discipline that will be needed to consistently manage their own business. As the leader at the top of your corporate chain, every day is a workday and every move you make can have rewards or consequences.
4. Poor Preparation.
As the old saying goes “failing to plan is planning to fail,” so don’t make the common mistake of taking off running when you haven’t even tied your shoes yet. Do your due diligence twice in every critical decision that you make and you’ll be much less likely to encounter negative results. Business planning is an entire field of study in and of itself, so don’t overlook the importance of what you do before launch day.
Set Yourself Up For Success.
In closing, just because the vast majority of novice entrepreneurs face stumbling blocks, that doesn’t mean you need to fall victim to the same fate. By heeding the shortlist above and taking steps to avoid each of those common mistakes, you can greatly reduce the risk of having to endure the horrible experience of managing a failed business endeavour.