Two Main Reasons Why Startups Fail

Entrepreneurship is a true test of resilience. Nobody starts a business because of the 90% failure rate, rather in spite of it–  you believe your idea is unique enough to beat the odds. But things are bound to go wrong for even the most successful entrepreneurs and though it’s painful, failure is a right of passage in this world. In this session, we talked about why so many businesses fail, and what we can learn from others’ mistakes. 

Ascertain not just the cost of opening your business, but staying in business, at least until you can survive on sales revenue.

1. Your startup’s oxygen is running low

Inadequate funds are a top reason businesses close their doors. Colin pointed out that you could have the best idea in the world but without the money, you don’t have that “oxygen” your startup needs. Finances and funding need to be sustainable in order to hire, advertise, and scale, so implementing a budget and financial strategy early on is important. Ascertain not just the cost of opening your business, but staying in business, at least until you can survive on sales revenue. 

“You can’t outsource the entrepreneur.”


2. Who cuts the cake?

Management and the systems in place are also to blame for many companies going under. Who you hire early on matters– and be clear on why you hired them. We discussed with the audience a ‘too many cooks in the kitchen’ scenario with no one really in charge. Someone has to have the final say, or days would be spent discussing ideas with no execution. While you want a team that works closely and well with each other, be intentional about delegating tasks and expectations. It’s crucial to devote time to developing a strong business plan and forming a management team before putting your plan into motion. 

Be sure to listen to the full replay above for even more lessons on failure and resilience in entrepreneurship.

Thinking Differently in Business

In a recent crossover episode of The Complete Entrepreneur and Serial Entrepreneur: Secrets Revealed, we discussed how unique cognitive styles contribute to entrepreneurial success....

Global E-Commerce Growth Tips

In the world of e-commerce, where competition is tough and consumer expectations are high, having a well-thought-out strategy is more than just beneficial—it's crucial...

The Hidden Costs of Capital

In the dynamic world of entrepreneurship, securing capital is a pivotal step for those aiming to expand their ventures. However, this endeavor is not...

AI Entrepreneurship: Key Tactics

In an age where artificial intelligence (AI) is reshaping the technological landscape, entrepreneurs stand on the cusp of a transformative opportunity. A recent Open...

Sales-Driven Entrepreneurship

Entrepreneurs often immerse themselves in product development, overlooking the crucial role of sales in business growth. A recent crossover episode of The Complete Entrepreneur...

AI Revolutionizing Business Efficiency 

The business world is undergoing a major transformation with the rise of artificial intelligence (AI), offering entrepreneurs unprecedented opportunities for growth and enhanced efficiency....