According to the SBA, “failure rate of startups was around 90%. Research concludes 21.5% of startups fail in the first year, 30% in the second year, 50% in the fifth year, and 70% in their 10th year”. These numbers although frightening, should not deter you. Instead, avoid many of the common pitfalls that lead to failure. Michael Blakey (aka ProducerMichael) Michael Blakey, a famous music producer and YouTuber, uses his platform to inspire new entrepreneurs by providing insight into achieving the millionaire lifestyle. Michael is a true motivator who inspires others with incredible ideas, reviews, advice and life-experiences. Producer Michael is one of YouTube’s most popular luxury lifestyle channels, with over 1.3 million followers. Let’sl take a deep dive into the world of millionaires with the aid of Michael’s videos. ProducerMichael’s videos include successful millionaire tactics that might assist you become a successful entrepreneur. Here are 6 reasons why entrepreneurs fail at new businesses: Not Having Enough Money Lack of sufficient CashFlow is one of the primary reasons a business could fail. Businesses that lack capital and resources struggle to grow and often, are unable to meet unexpected costs that were not anticipated or planned for. Lack of Market Experience Being unable to identify their target audience, conduct market research and pinpoint the demographic of their clients. It is imperative to know the competition, their services, and prices. Calculate the price point for your services; maintaining profits while providing value for money. Entrepreneurs must be able to answer these basic questions about their market in order to run a successful business. If you don’t know who your customers are, what they want, and where else they can get it, you’re likely to fail. Lack of Vision A strong leader has a vision and a mission. They must have the capability to convey that ambition to others in a way that encourages them to follow in their footsteps. Leaders must establish and identify achievable measures of success and timelines in order to recognize what’s working and what’s not. Businesses without well-thought-out long and short-term goals may fail because they lack defined success criteria along the way. Poor Marketing Campaigns You can have the best product in the world, however, if nobody knows about it, you will fail. The importance of exposure is as important as the product itself. Before entering into business of any kind, it is critical to determine how you will inform your target audience of your services/products. Weak Planning and Execution “If you don’t plan, you plan to fail,” is a statement we’ve all heard. The success of any business is directly correlated to the amount of advanced planning and strategies created prior to launch. Poor planning and follow through is one of the main reasons new businesses fail. Not Open to Constructive Criticism Allow opinions of others as well as criticism to serve as a chance to improve. Entrepreneurs often shun criticism because they are blinded by their beliefs. In order to succeed, often failures become part of the growth process, identify what went wrong and create a plan to correct it. Conclusion Even though the failure rate for new businesses is roughly 30% in the first two years, that doesn’t imply you will fail. Avoid many of the pitfalls of starting a new company by: planning appropriately, avoiding shortcuts, open to modifications, but most importantly, ensuring an adequate cash-flow to allow for unexpected events.
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