10 Top Reasons Why First-Time Entrepreneurs Fail

When you just begin your entrepreneurship career, it is important to equip yourself with proper knowledge.  We can’t expect that the business will run smoothly along the road. 

Even taking failure as milestones to success is a must, but knowing the 10 top reasons why first-time entrepreneurs fail will avoid too much suffering. Let’s take a look.

1. Don’t Make a Written Plan

Knowing what you will do from the beginning is important if you want to start a business. 

To make everything run on the right track and focus on what should be achieved, you need to write a plan for the business in the future.

By having a written plan, you will know how to actually turn your idea into a business. You know the priority of your business, which one to do first and later. 

Change might be made along the way but it will keep sticking to the goals that you have decided.

2. Failed in Making Business Model

Whatever your business is, even though it is a non-profit one, you have to gain revenue from it. This is important to balance the operating cost. 

If you offer a free product or lose money instead of making money during the sale, it will be hard for your business.

You might have the proper solutions or products to the people problem, but if the products are out of reach from your customers’ affordability. 

Your business’s longevity will be in danger. So, make sure to make a solution that is considered easy to make money.

3. Lack of Business Opportunities

Although you always have great ideas, it does not mean that all of them can be transformed into a successful business. 

You might be thinking that your products are brilliant and solve people’s problems but you should know the fact that not all people will spend money on them.

Hence, it is essential to do market research first before you create or launch any products, gain information from your family and friends, and discuss with the experts about the prospect of your products. This will give an idea of what products need to be launched to the market.

4. Weak Execution

First-time entrepreneurs tend to have many ideas in their minds. No matter how worthy the ideas are, if you don’t execute them, it will just be ideas. 

Ideas will come true if you make an execution. Thus, make sure to have logical business ideas, so you can execute them well.

Besides, as entrepreneurs, you have to leave your comfort zone, brave enough to make decisions and take the risks. Even there is no guarantee that your ideas will perfectly successful but you will learn a lot by doing that. 

5. High Competition

If you have no competitors, it means that your products are not needed in the market. Yet, you need to be aware when your business starts because high competition also can danger your business.

Other companies that already experience in selling similar products commonly will lead the market and the small ones have a lot of struggle because it’s hard to handle it. 

Hence, before starting, you have to search for a market interest that is already crowded or still has space for you to enter.

6. Less Support from Intellectual Property

Intellectual property is one of the reasons why first-time entrepreneurs fail. Why? 

Intellectual property becomes one of the elements that play an important role in new company valuations especially in front of potential investors.

Not only for getting the investors, but the intellectual property also helps your new business remains sustainable in the middle of market competition, particularly against big companies. 

Registering the patents of your own products as well as trademark and copyright for your business names or logos will help.

7. Unqualified Team

You need to know the fact that investors are willing to fund for the quality of works not just your brilliant ideas. 

They will certainly fund if know that the business is qualified for the works. It means they expect the business will be run by an experienced and skillful team.

If you just running a business, you have to put this into account. Look for a partner that knows well about the business and has experience in handling that. It will help you lead the team on the right track like what is being expected by the investors.

8. Underrated Resource Requirements

We all know that money is the main resource in any business. 

However, it doesn’t mean that you can look down on other resources because they affect the success of your business too. Having much money if not managed properly will put your business in trouble.

You need to manage well your business networking. You have to save important contacts for your business and get access to sell your products in the market.

9. Bad Marketing

On-trend marketing and nice words are not impressive enough to make your products noticed by the media. 

You require effective as well as ground-breaking marketing strategies through various media in order to successfully market your products.

To achieve this, you not only need effective promotion but also a professional and experienced marketing team. They will find the best ways to market your products and how people feel they need to buy your products.

10. Early Quitting

In a lot of cases, new businesses cannot survive since they are easily giving up after facing failure. 

Instead of taking failure as a lesson, they tend to leave the business. Otherwise, they are getting exhausted when finding there is not much progress on the business and end up closing the startup.

Many successful entrepreneurs in the world also faced hard times when running their businesses. However, they keep moving slowly on their goals so, in the end, they achieve success.

Besides all your preparation to starting the business, learn 10 top reasons why first-time entrepreneurs fail will help you to avoid them. 

By getting aware of such kinds of obstacles, it leads you to set the success of the business from the beginning.

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