Feeling some hesitation about starting your next venture?
You should be.
We’ve all heard the stats. According to Bloomberg, 80% of businesses will fail in their first 18 months of operation. And, according to Forbes, the gender barriers women face make starting a business even dicer.
You’d have to be crazy to start a business against those odds, right?
I bet you’re tired of being told you’re crazy. Tired of people telling you to play it safe, to stick with your day job or just stay home. I’ve been up against that before...and sometimes, yes, I let it hold me back.
But if you’ve got that true entrepreneurial passion, sooner or later the “craziness” isn’t going to hold you back.
Still, some reassurance would be nice!
What if I told you the top three reasons startups fail are things you could easily prevent in your own business?
It’s true. With a little foresight, you can beat the odds and become one of the 20% who experience lasting success as an entrepreneur.
Let’s break down the top reasons businesses fail, and what you can do to set yourself up for success.
#1. No One Wants Your Idea
On a recent report of the Top 20 Reasons Businesses Fail, “No Market Need” ranks #1.
Does that mean your idea is bad?
You could have a GREAT idea. But your business could still fail because
1. You aren’t communicating it the right way (BRANDING), or
2. You are going after the wrong market!
This is especially true in low-competition industries where you are trying to create something new.
While getting a new product or service to the market is a great way to position yourself for long term success, it’s not easy to get the messaging right (and to the right people) before your cash flow runs out.
Are entrepreneurs just doomed to shoot in the dark and hope they hit the right market? Does it have to be a race to break through before your personal savings account bleeds dry?
The BEST way you can prevent this is communication.
I’m not talking about one-way communication. Throwing up some Instagram ads and just responding to the positive reviews on Google won’t work.
I’m talking real, honest, deep dialogue with your customers. Do you really understand their needs? Their pain? Their desires?
And, most importantly, is your product or service really useful to them?
If you can’t enthusiastically answer “YES!” to this, it’s time to rethink what you’re selling...or who you are selling to.
The second reason businesses fail is…
#2. Bad Leadership
This means YOU.
The media has ALWAYS loved to talk about athletes and politicians who make bad decisions and fail at the height of their success. Mike Tyson, Lance Armstrong, etc. Now, we’re starting to see some of our favorite startups in the hot seat.
While it’s too soon to tell how stories like Uber and Amazon will play out, the truth is founder-centric failure starts looooong before it hits the tabloids.
When it comes to businesses that fail, scandal is rarely the real cause. Most businesses fold long before.
Entrepreneurs who are overworked, stressed out, and not taking time to care for their own needs are at high risk of sabotaging their company through poor decision making, emotional inconsistency, and burnout.
The worst part of this type of failure? How much it damages YOU.
This is why it is so, so, soooo important for you to spend time making a plan and building your team before you launch. And, to take time to focus on your own development as a leader.
Entrepreneurs who cultivate their leadership through coaching are able to grow through and bounce back from challenges, instead of failing.
#3. You Don’t Have the Right Team
Competition? Pricing Challenges? Scaling Production?
These obstacles can really trip up a new business…IF you don’t have the right team to face them.
Ever heard of BricaBox? Boompa.com? Or Cyptine? All smart startups that failed because they didn’t have a solid team structure.
Creating a great team is vital to your success. It not only takes some of the workload off you (helping you be a better leader) but also gives you the advantage of experts from all areas working to make your operation better.
I’ve written an ultimate guide to get you started on building an awesome team for your business HERE. < Link to ultimate guide to Building Your Team > Check out this article and discover not only how to prepare yourself as a leader to build a great team, but also,
The MOST important tasks you need to hire out FIRST.
The BEST Questions to ask when you’re interviewing freelance help.
How to find your PERFECT business coach.
Businesses fail...but you don’t have to be a statistic.
Remember, if you have any questions I’m here for YOU. Send me an email HERE < Link To Contact Email > or schedule 15 minutes to chat HERE < Link To Consult Call > and let’s get started!