Sunday, 22 April 2018

3 Reasons why entrepreneurs fail

Entrepreneurship is more or less a roller coaster ride filled with dosages of achievements and failures. One who can take it as a ride is the one who enjoys it. I personally Know quite good number of Entrepreneurs who really are super intelligent, but when it came to business they did not succeed in making their business successful, let's see the reasons why this happens.

An entrepreneur

1. Confidence

Yes that's fuel of an entrepreneur. Before diving in deeper, let us see go through the path of entrepreneurs.
  •  Quit previous company upon understanding that they can actually earn way better for the skills they have. 
  • Understands the business, and prepares their own plan on how to make their startup a success, 
  • Meet few really talented fellows and kick starts their business.
Then starts the roller coaster ride, there comes the barriers.


Barrier 1: Hiring

Upon starting the business, gets call from unemployed friends and relatives with underpaid children to convince to hire them as employees.

Barrier 2 :Investors

Prepares revolutionary ideas to pitch investors to invest on their startup, while the plan looks awesome to them and their small team, It fails to impress investors.

Barrier 3: Employee Retention

While everything seems to be going good, their arises a small argument with the co founder, goes big, he demands his share to move out of the company.

Barrier 4: Personal life

While they're working heavily on improving their startup, their came a complaint from wives that it's been an year since they actually interacted, demands divorce, court orders to give part of his property as compensation.

Barrier 5: Loss

Upon running the startup for an year, fails to make profit with it, Investors demand for backup. Then comes situation where you can't give salary for the employees.

Barrier 6: Depression

Because of drowning business and empty personal life goes to Depression and thinks on what actually is happening in his life,  how intelligent and happy he was working for a company.

Better the road taken, more will be the barriers, over 60% of people stop their journey at one or the other barrier. But for the one who manages to go far understands that barriers are part of journey, further he goes more experience he'll be having facing them and their he sees his dreams meeting the reality.

Quote on entrepreneurship


2. Employee satisfaction: 

I'm a person who believe that an organization is nothing about its employees and bond between them, The major reason why start-up fails is because that thrive to success is present only in the Entrepreneur and not in employees.

I questioned few Entrepreneurs on why they quit their previous company, After compensation thing, the very second thing they tell is

" I do not want to work for someone else, when I can work for themselves and make more money" .

That's a good quote, but don't you think your highly intelligent employees feel the same? Will your employees give their best when they feel the same? As a boss, how different are you from boss of your previous company?

The major problem with good employees is that after some time, they start to feel whether or not they work more, they get paid the same, so they concentrate more on learning.. than on working more, they choose not to go that extra mile to work more for the company. While as an entrepreneur you think of the company's growth, as a employee they think about their career and Work-life balance.

I recently wrote an article on medium on How to improve efficiency of employees, the very first thing you should do is

  • Give enough compensation so that they do not think of leaving company to join other companies
  • Proper work life balance: Believe me if an employee is working for more than 40 hours per week, unless he/she's really passionate about their work, they will eventually start to feel they're missing their personal life. Companies like Google, Facebook invest so much on food and fun activities for their employees so as to not give reason to live the company.
  • Company shares: This will make them feel they're working for their company than just for their salary.


3. Not Investing

Wow, the company's annual revenue now touches million dollars. But what are you doing with your share? Are you Investing on developing new product that'll boost revenue in future, are you buying those companies which according to your instinct will trend in near future?

No matter how successful your company is, it's easy to replace it if it's fixed on one field. Yes i mean it.

"I believe there are two ways to success, One to win and second to not lose"

I always go for the second approach,  irrespective of number of people I'm competing with in knock out race, I make sure that i don't lose. Even if I'm competing with the best Entrepreneur in the world, I may not be better than him/her, but I'll show that I'm not inferior to them.

What business Properties do you own that you know will keep people hooked for years? What's that factor that could not be found in competitors?




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