Better success rates notwithstanding, a significant percentage of new businesses do fail. Expert opinions abound about what a business owner should and shouldn't do to make a business successful. Here are the top seven reasons for business failure and what you can do to avoid them.
1. You start your business for the wrong reasons.
Is your primary reason for starting your own business the desire to make a lot of money? Do you think that if you have your own business that you'd have more time with your family? Or maybe that you wouldn't have to answer to anyone else? While those are benefits some successful entrepreneurs achieve after years of hard work, they are not reasons to start a business.
1. You start your business for the wrong reasons.
Is your primary reason for starting your own business the desire to make a lot of money? Do you think that if you have your own business that you'd have more time with your family? Or maybe that you wouldn't have to answer to anyone else? While those are benefits some successful entrepreneurs achieve after years of hard work, they are not reasons to start a business.
The right reasons for starting a business - reasons that lead to building a successful company include these:
- You have a passion and love for what you'll be doing, and strongly believe -- based on educated study and investigation -- that your product or service would fulfill a real need in the marketplace.
- You have drive, determination, patience and a positive attitude. When others throw in the towel, you are more determined than ever.
- Failures don't defeat you. You learn from your mistakes, and use these lessons to succeed the next time around. Studies of successful business owners have shown they attributed much of their success to "building on earlier failures;" on using failures as a "learning process."
- You thrive on independence, and are skilled at taking charge when a creative or intelligent solution is needed. This is especially important when under strict time constraints.
- You like -- if not love -- your fellow man, and show this in your honesty, integrity, and interactions with others. You get along with and can deal with all different types of individuals.
