Under30ceo.com had a great article a few weeks ago about why businesses fail. The article listed a few typical reasons that businesses fail that we always hear about, such as inadequate funding, poor location, bad management, etc. You can read the full article here.
What made this article unique, and in my mind very beneficial for entrepreneurs, is the list of 6 lesser-known reasons. That list is:
1. Focusing on short-term profits rather than building long-term value
2. Ego business vs. business opportunity
3. Lack of a business plan
4. Bad feedback & white lies
5. Maybe the owner is just a jerk
6. The entrepreneur never took the full leap
Being the owner of a business plan development company, #3 and #6 hit me especially hard because I see it every day. First off, having a solid business plan, whether done from Optimus, another firm, or on your own, is extremely important to success in business. Even if you have no intentions of getting funding, or already have investors who are interested, a good business plan lays the foundation of how your business will operate, how you will market your company, and who your target customer is.
The entrepreneur never taking the full leap is an issue as well. When you have a full-time or part-time job on the side, there is always a backup. When this happens, you don’t necessarily have to give 100% to your business because you always have other money coming in on the side. What happens if you don’t give 100%? The potential success of your business drops significantly. A high percentage of part-time entrepreneurs simply don’t make it.
In similar fashion, I see a number of entrepreneurs who never start their businesses because they don’t want to leave their jobs. I have potential clients call me literally every single day that never leave their jobs to start their businesses. Getting caught in this complacency is very dangerous because you lose sight of your vision and dreams. Why stick with a job paying you a salary working for a boss you despise when you can get the tools necessary to run your own business? Many people are simply too afraid to take the leap. While taking that jump is hard, it’s the most rewarding thing you’ll ever do in your professional career. And it all starts with an idea and a solid business plan.