There are so many reasons why people want to start out a business as there are as many reasons why people are afraid to get into it. For some, it is because of the perceived enormous risks, especially to the uninitiated, although to many it is the lure of a changed lifestyle, a feeling of independence and lets face it, the opportunity of better income and when done right, even wealth.
The greatest difficulty though is the starting.
Although at the outset, most potential entrepreneurs would never dream of failing, the facts though would eventually seep in.
We have often been told that 90% of businesses fail during the first year of operation and only a small percentage of the remaining ten-percent really make it.
There are many reasons for these failures. It would then be smart to look closely into these failed entrepreneurial ideas and take lessons as to why businesses fails if one is to increase the chances at succeeding. Some examples of failed entrepreneurial ideas are:
§ Discover your passions and make a business out of it.
Nothing worthwhile in this world has really been achieved without passion and this is very true. However, there have been a lot of businesses built on a passionate desire to sell what one truly believes in that did not make it. Why? Because for all the passion built into it, the market is not primed for it. Another thing is…
§ Over projection.
Enthusiasm is required if one is to succeed at any endeavor. It is the fuel that fires a person up. It is the motivation that serves as the driving force to start out into a direction and the energy that could supply the individual as the direction is taken. It is also the source, sadly, of frustration.
§ Getting into a business that has been proven to succeed.
Let me site an example. When Internet was just starting, someone in my neighborhood started an internet shop. It did very well and so as with anything that goes well, someone started picking the idea up and opened a shop. It did okay and the idea caught fire. Soon another opened up. As could be expected, the shops started competing for the customers and prices were driven down. Soon afterwards, everyone has access to the Internet and most of the shops eventually closed. Get the idea?
Another example of an entrepreneurial idea that could seriously go wrong is getting into a similar business that someone has done successfully. Make a careful study because unbeknownst to you, you could be getting into a business that has better resources, is better funded, is a niche market that could produce goods faster, cheaper and of better quality. When you get into these niche businesses, you are already on an uphill climb the moment you start.
Even granting that the business that you are getting into is at par with what you have, you could be drawn to a constant head to head battle and when that is done, margins will be the first to suffer.
§ Getting into a business for very strong profit motive. Now, what could be wrong with that? Ask any seasoned businessman and he’ll say everything. For one, marketing, merchandising and communication and other goodwill support that is so vital in making your goods compete in the marketplace could already suffer even at the start.
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