If you want to be an entrepreneur, you should be aware of reasons why most first time entrepreneurs fail their effort. Here are the reasons:
1. They Have No Written Plan
A business plan will be needed and people underestimate this. Written plan helps you to develop your ideas into a real business in market. You must have the plan.
2. No Revenue
Most small business begins the effort without setting revenue on their effort. This is a bad start. You need revenue and even the smallest one needs revenue to make more stabile company.
3. Business Opportunities are Limited
Sometimes, a good idea cannot be a great business too. This is maybe caused by the people not wanting to buy your service or product. Do market research first.
4. Unable to Execute
Idea is not the one that worth the money. It is about the execution. You must be able to make even the hardest decision and taking the risks wisely.
5. Competition is Too Much
If you do not have competitor then your idea is maybe out of market. However, too much competition kills a business all the time too because the team cannot handle it.
6. They Have No Intellectual Property
You need to be more than registered. You also need to make your property patented, and you need to have trademarks and copyrights.
7. Inexperienced Team
Having a team will be a great start but you also need people with enough experience to work with you. They will know what to do and how to handle things. So, look for someone experienced when you make vacancy ads.
8. Resource Requirements are Underestimated
Your cash is not the only needed capital. Your resource like marketing contacts, vendors’ partnership, and others need to be well managed.
9. Small Marketing
Your business should have great promotion and it is should be assessed and executed by professional marketing team. If you have nice product or service, you also need great marketing so people will buy it.
10. Early Giving In
Most entrepreneurs are really serious at first time but they get tired sooner and they are exhausted in trying. Instead of being that way, you should keep on going and try your best.
Now, learn from those reasons and try to avoid it and you will be one of few entrepreneurs who are success since the very first time they establish a business.