5 Reasons Most Entrepreneurs Fail

According to statistics, 90% of entrepreneurs will fail during the first five years in operation and only two percent of entrepreneurs will reach the million dollar mark in revenue. This is especially concerning for women entrepreneurs who are starting new businesses at 1.5 times the rate of men.

Why do most entrepreneurs fail?

1. They are focused on the product, not the customer. You can have the greatest product or service, but if your ideal client wants something else, you have failed before you even started.Successful entrepreneurs develop products and services that fill a gap. There is a defined need (pleasure or pain point) in a segment of the market (the narrower, the better) and that successful entrepreneur eats, sleeps and breathes that need and knows precisely how to ease that pain or provide that pleasure.

2.  They don’t follow a solid development framework. Entrepreneurs fail when they don’t follow the standard practices of good product development that include research, concept testing, pricing, prototyping, branding, combined with a solid marketing strategy and sales plan. If you have left out or fail at any one of the key stages, your success will be hobbled at best.Successful entrepreneurs don’t fall for get-rich-quick schemes and they don’t skip steps in development. They know their weakness and get or hire the skills to do it right. They also build a solid business infrastructure as soon as the product has traction. Scaling for growth needs to be built in from the start.

3. They are financially illiterate. Entrepreneurs who bootstrap their development risk maxing out credit and draining their savings accounts before the business reaches sustainable success. This is especially true for women entrepreneurs who go for funding too late in the process or find too few VCs willing to invest.Successful entrepreneurs are clear on their financial model. Their business model is repeatable, scalable and sustainable over time. They get funding early and grow their investments over time as the company expands.

4. They hire the wrong business coach or consultant at the wrong time. Marketing models and technologies for reaching prospects are always changing… hiring the wrong coach at the wrong time can leave you with processes and technologies you are not yet ready to implement.Successful entrepreneurs engage consultants and business coaches that can support them at the right stage of the development process. They don’t dive into the funnel before they understand the ideal client or have a viable business model.

5. They don’t delegate enough. Many solopreneurs fall into this startup trap. Trying to launch on a shoestring, they bootstrap not only investments, but time. You have your particular zone of genius – which is what your ideal client desperately needs. Anything that’s out of that zone – farm out.Successful entrepreneurs outsource early and often. Social media, content strategy, web development and tech integration are best handled by others no matter how geeky you like to get. Focus your attention on product and sales. The two key areas that will make or break your business.

Also see: How To Find Your Passion

To your success,

In honor of National Women’s Day… Do you have a dream you’d like to pursue or a business that’s stalled that you want to reignite? I have a 25-year career history in successful product and program development. I want to see you succeed. Schedule time with me here.