Many entrepreneurs know these by heart. It doesn’t hurt to check in. It’s nice to be aware.
Here are the reasons:
1. No Game Plan (on paper)
Writing a plan takes the thought or idea (ether, air) and actually makes it a thing real. Pen to paper is a very physical thing. It makes the intangible, tangible. Some entrepreneurs underestimate the power of writing things down. Try it to see if there is a difference.
2. No Money
If you decide to do something, you have to charge for it. If no one wants to pay you, reevaluate it. Many small businesses begin this effort without setting a dollar amount for their effort. This is a bad start. You need revenue and even the smallest company needs revenue to make it stable.
3. Business Opportunities are Limited
Sometimes, a good idea can and will not be a great business. This is caused by the people not wanting to buy your service or product. Do market research first. Check to see who wants to buy it.
4. Unable to Execute
An idea is not worth any money. It is about the execution of that idea. You must be able to make even the good decisions and do the work.
5. Competition is Too Much
If you do not have competitor then your idea is maybe out of market. However, too much competition kills a business. Business is math.
6. They Have No Intellectual Property
You need to be more than just a trademark, copyright, and registered to own something. You also need to have your intellectual property patented.
7. Inexperienced Team
Having a team will be a great start. Investors want to see people with experience. The ones that know what to do and how to handle things. So, look for someone experienced when you make hiring and employment ads.
8. Resource Requirements are Underestimated
Your cash is not the only capital needed. Your additional resources such as marketing budgets and contacts, vendors partnerships, and others need to be well managed.
9. Small Marketing
Your business should have great promotions and it is should be assessed and executed by professional team. If you have nice product or service, you also need great marketing so people will buy it.
Remember: It’s a Brand first. Then, comes the Design, then Communications strategy and finally, Advertising and marketing. This sequence works like math.
10. Early Giving In
Most entrepreneurs are really serious at first. They get tired sooner and they are become exhausted trying. Instead of being that way, you should keep on going, slow and steady, and always try your best. Improve a little each day.
Now, learn from failures and be one of few entrepreneurs who are successful the very first time they establish a business.