Spotlight on CEO: Why Most Entrepreneurs Fail, from IOOGO CEO Josh Alballero
We live in a world full of ideas, with the ability for many people to take those ideas and turn them into businesses. This attraction to entrepreneurship is important for the economy, it is part of what drives job creation, innovation and technological growth. For many people, the idea of starting their own business is a lifelong dream, however, once they get there, they find themselves watching that dream fail. The Bureau of Labor Statistics estimates that nearly half of new businesses will fail within the first five years. Josh and Kristy Alballero, the Texas-based husband and wife team who successfully started their own business, IOOGO, share 7 common reasons entrepreneurs fail.
- Poor planning and not enough research – Too often entrepreneurs fail because they set out to open a business without doing the right amount of research and planning. Planning establishes a game plan and roadmap, research helps to understand the market and the potential customer, without this information a business can fail quickly.
- Not the cheap – The quality of an idea does not matter if it is not presented to the right group of customers. It comes down to planning and research, and not spending enough time knowing the market, as well as the specific customer base and target audience that the business is going to serve and attract.
- Try to do it all – When starting a new business, entrepreneurs will think that they have to take responsibility for everything and do everything for the business themselves. It is admirable to be willing to try to solve a problem, however, all too often entrepreneurs try to solve or solve something that they simply do not have enough knowledge or skills to do. Trying to do too much on your own leads to emotional, mental and physical exhaustion, which is why many entrepreneurs cite in retrospect why their business has failed.
- Get out of the cape – Entrepreneurs are often distracted, no longer focusing on why they started their business in the first place. People often think that they need to do more, all the time, to always try to grow and take on too many new projects to give their business the attention it needs to thrive.
- Not having an open mind – Not being open to new things, new perspectives and new ways of doing things can handicap an entrepreneur. Again, while it’s easy to believe that your own opinion and way of doing things is right, this isn’t always the case.
- Wrong type of marketing or not enough marketing – Too many people think that marketing and advertising are the same things, or that just posting a random post on social media will be enough. A business will not succeed if no one knows it, too many entrepreneurs make this mistake.
- Set measures of success that are too high – Often entrepreneurs enter into it expecting to see huge profits or immediate growth. Dreams of being the biggest name in the industry right away are unrealistic, a truth many entrepreneurs don’t realize until it’s too late.
Believing in your own idea and investing in it is not wrong, however, to be successful as an entrepreneur you have to look at the big picture. Planning, research, attitude, mindset, openness to criticism and new ideas are just some of the ways entrepreneurs can prepare for success. Understanding why others have failed and trying to avoid those same mistakes is a step towards entrepreneurial success!