Young entrepreneurs should know an enterprise succeeds as much it can fail. Research has shown that the rate in which budding entrepreneurs fail is as high as 50 percent. However, optimistic entrepreneurs view failure as a milestone on the path to success. Successful entrepreneurs learn from their mistakes and reflect on their past to soldier on. You could also learn from the suffering, pain, and failures of other investors. Here are some of the reasons young entrepreneurs go out of business even before they get off the ground.
Lack of a Written Plan
Young entrepreneurs often believe the myth that a business blueprint isn’t worth the time and effort. However, a business plan can be a gamer changer for a startup. It is the best way young entrepreneurs can understand how to turn ideas into a reality.
Poor Execution
Even a charitable organization has to generate revenue in the form of donor funds to offset its operating costs. Similarly, startups need capital to offset their costs of operation. It might be hard for a startup to find its way in a competitive market if it continues to lose money on every sale. An enterprise that doesn’t have sufficient funds might not last for long even if it has a solution to a problem that plagues the entire world. Budding entrepreneurs can embrace the latest accounting technology such as quickbooks online payment to avert some of the financial crises that plague them.A young entrepreneur may be having a million dollar idea; however, a business concept alone is worth nothing. The success of a killer idea depends on how one implements it. An idea might not see the light of the day if the innovator isn’t ready to take risks and make critical decisions
Lack of Intellectual Property and Experienced Labor
Young investors should register for copyrights, trademarks, and patents to compete against the industry aces. The best way an entrepreneur can protect their trade secrets is to enlist their non-disclosure and non-compete agreements. Intellectual property is an element that professional investors often use in the valuation of early-stage companies.Investors usually offer financial aid to innovators, not ideas. An investor wants to fund someone with experience running a startup. As such, a budding entrepreneur should work with someone who has been around for quite a while to bring in their expertise. That helps aspiring entrepreneurs balance their passion.
Lack of Persistence
The leading cause of startup failure is entrepreneurs giving up and getting tired too quickly. Successful business owners keep pressing on until they find success. The same should be the case with young entrepreneurs who want to turn their ideas into successful ventures. Attitude of an entrepreneur can either make or break a business. Young entrepreneurs should venture into the business world to achieve nothing short of success. Failure is a step in the process of becoming successful. In fact, some of the successful investors would try over and over again to make sure they get it right. Things get rosy every time an innovator fails. You should prepare for ups and downs because being an entrepreneur is an often tiresome and tedious journey. It’s easier for young investors to embrace the entrepreneurial spirit. However, things get tough when it comes to defining their success path. Young entrepreneurs are likely to fail if they don’t have a clear direction.
Inadequate Marketing Efforts
Use of word-of-mouth is no longer enough to make your brand known worldwide. You need to go beyond traditional, old-fashioned advertising techniques to find a niche in today’s digital marketplace. Even viral marketing will cost young entrepreneurs time and money. Your business will lose customers and ultimately sink if it doesn’t have an innovative marketing technique that makes your brand visible. High levels of competition can be a red flag indicating lack of market opportunities. Young entrepreneurs can use Google search to check whether their areas of interest are crowded or not. However, remember sleeping giants can hit back with a bang. Therefore, young entrepreneurs should not rule out the possibility of sleeping giants waking up.
