Top 6 Reasons Beginning Entrepreneurs Fail : Under30CEO Top 6 Reasons Beginning Entrepreneurs Fail : Under30CEO
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Top 6 Reasons Beginning Entrepreneurs Fail

| April 19, 2011 | 15 Comments

entrepreneur fail

6. They focus on fixing their weaknesses. Forget your weaknesses and focus on enhancing and blowing up your strengths so your weaknesses become irrelevant. Put in the hours of “Grind Time” honing your strengths, business expertise and building your brand. Your brand is simply the personality of your product. Allow people on social media and other mediums to get to know your brand and build a relationship with your target market first, before asking them to buy from you. Why not give them something FREE, intriguing and of value first! If your product is really that good, prove it and give away some samples and if really is that good people will talk about it and demand for it will increase.

5. They don’t understand and underestimate the power of marketing. Most entrepreneurs think their product/service is so much better than their competitors. But what they do not understand is that their product does not have to be the best to be successful. As long as their potential customers “perceive,” or think and believe that their product is the best, it will sell. Marketing is not about who has the best product, it’s about who is perceived to be the best or one of the best. There are so many people that I am sure can make a better sandwich than Subway or better burger than Mc Donald’s, but the rest of the world will never know or buy their product because of their failure to market effectively. You may be good, your product may be spectacular, but you will stay broke and your product won’t sell unless you have a ridiculous and relentless marketing plan.

4. They immediately seek grants, investors or substantial loans,without testing and proving their basic business model (or how they will make money) actually works. Every business can be started on a small scale for about $1,000. Apple, Dell, Subway and myself all started with about $1,000. Start small, perfect it, then you deserve to expand.

3. They don’t have enough come-up capital. I have seen many beginning entrepreneurs open up lavish spectacular storefronts, but nine months later they are closed down. Why? They ran out of come-up capital to keep it going. They assumed that customers would just run to their doors dying to buy their products. You must test your business idea first on a small scale. Build your brand and customers base.  When I started selling from the trunk of my car, I knew it worked but I also built a huge customer database list so that once my new store front opened, I could announce it to a constantly growing customer database list to make sure cash flow kept coming. I also did not stop selling from the trunk of my car (don’t you dare get comfortable) to keep cash flow consistent and I saved thousands for a cash cushion.

2. They don’t develop the essential qualities of successful entrepreneurs: discipline, perseverance, vision, creativity, a “Grind mentality.” If you currently have a 9 to 5, start operating your personal life like a business. Focus on making “You Inc.” profitable by trying to increase your income or reduce expenses to free up extra money that you can use as capital for your part-time hustle or full-time business.  If you cannot make You Inc. (yourself) profitable, how do you expect to make another business profitable? This will also prove if you have developed discipline.

1. They start a business for the wrong reasons. They do it because they are excited about the opportunity of making lots of money, instead of starting a business based on who they are and aligning the business with their passion. Grind for Greatness!

Speaker, trainer, author & entrepreneur, James “Bird” Guess went from homeless to building a half-million dollar business from the trunk of his car, starting with only $1,000, poor credit and a dream to become a millionaire. He is now the founder of JBG International Success Academy, a personal development company that conducts seminars and training programs for working professionals, entrepreneurs and students to achieve their greatest potential using a success process called “Grinding.” James is the best-selling author of the book How I Made a Quarter Million Dollar$ From the Trunk of My Car, and his blog is www.jamesbirdguess.com/blog and you connect with him on facebook at www.facebook.com/jamesbirdguess

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Category: Startup Advice

  • 1newideakl

    Reading this article I was laughing, these are right on the money to help you fail. Step 6 is probably my favorite, in every asset as an entrepreneur you work more than you would if you weren’t your own boss. And step 9, think about it if someone didn’t go outside the norm when thinking about the internet we wouldn’t even be reading this blog today. Thanks for the reminder of what not to do, sometimes we need to tell ourselves these things so we don’t fall into these steps.

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  • jm_2000

    I’m slightly confused…do you agree or disagree with the article?

  • http://www.blistmarketing.com Brandon Yanofsky

    I make a point to avoid investors. Yet most entrepreneurs think finding investors should be one of the first steps.

    And of course, like you say, they fail.

  • http://www.digital-minded.ca Amir Sabahi

    #4 was exactly my doubt!

  • Christina Cozzi

    Marketing is really one of the number one things new entrepreneurs forget to budget for. There are simple, effective, and economic ways to create awareness, raise visibility and enhance your reputation- in an affordable way! Camelot Communications (www.camelot-pr.com) launched it’s business striving to assist small businesses and young entrepreneurs achieve the aforementioned, and is happy to work Sotho your usher range. Contact us for more information

    -Christina Cozzi, 27, President of Camelot Communications

  • http://www.diedonthevine.com DiedOnTheVine.com

    Great article James! Thanks Under30CEO for sharing this with us! Its great how you have outlined these aspects which so vitally relate to the entrepreneur’s business model. Such important issues raised here as to what collectively causes these ventures to fail. We are always hearing of the principles and business models that successful company’s employ, but far to often the pitfalls, mistakes and setbacks of those that have “failed” are overlooked or simply not addressed. We at DiedOnTheVine.com love how Under30CEO is always presenting us with invaluable content that is essential and on the forefront of what entrepreneurs need to be successful. We at DOTV always say “learning from success is important, but learning from failure is vital to succeeding.”

  • http://www.online-business-virtual-assistant.com/ Virtual office assistant

    I loved reading this post and #6 and #1 were really good. If we focus on our strengths, weakness will vanish in no time.

  • Anonymous

    Great read! I myself am a chicken entrepreneur and so money is not really a problem but Time is a problem. It takes courage, energy, money, freedom, and every fun things you usually do to kill time to start a part time business. Additional to the #1 point you mentioned, you need to have the right passion in your startup, Without that, you will not be able to sacrifice such time to your startup.

  • James Bird Guess

    Thanks for the love! Lets learn together and keep Grinding for Greatness! Make sure you connect with me on facebook at facebook.com/jamesbirdguess

  • http://twitter.com/rodrigofuentes7 Rodrigo Fuentes

    Article says people “start a business for the wrong reasons. They do it because they are excited about the opportunity of making lots of money, instead of starting a business based on who they are and aligning the business with their passion.”  But then the author bio says: “James ‘Bird’ Guess went from homeless to building a half-million dollar business from the trunk of his car, starting with only $1,000, poor credit and a dream to become a millionaire.”  So which is it?  Perhaps the author is offering his conclusion that he started his business for the wrong reason…

  • James Bird Guess

    Rodrigo,

    Thanks for your comment, you made a great point. For me, at the time of starting that business I liked clothing, but it was more desperation to make money and be financially stable. And yes I had “short term success” and I eventually opened up a clothing store, but I would have failed had I not sold it and decided to become a speaker, because I soon realized clothing was not my passion and that I did it out of desperation for money. So you’re right, I should have wrote, if you start a business for the wrong reason, you may have short term success, but failure is probably inevitable and wont announce when he’s coming. Do you feel me? Keep Grinding!!!   

  • http://egasus.com Egasus

    6 and 5 are the most important I believe, because these are key to becoming good in what you do.

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