3 Reasons Why New Entrepreneurs Quit 6 Months after Starting Their New Business
Failure may seem like such a grim word, but it’s a part of life. In business, failures are even seen as opportunities to learn not to do the same mistakes again. However, nobody wants to fail, so we try to and do our best in any venture. If you’re an entrepreneur looking forward to seeing your business grow and thrive amidst a competitive market, you need to know the top 3 reasons why new entrepreneurs shortly after launching their business.
1. Lack of Proper Value Proposition
Every business should be unique, even if you have a couple of competitors in the market. From the very beginning, you must already identify what sets you apart from the competition, and build your branding from there. If you started with a generic value proposition, you will find it difficult to get people to pay, let alone capture their attention. Many businesses fail because they started out this way. If you’re an ice cream brand for instance, what makes you better than then established names out-there? Are your products organic, gluten-free, low-calorie, zero-fat etc.? Determine your brand’s advantages and make people see why your product/service is the best option. That is what we call being unique.
2. You Fail to Address Customer Need
Many new entrepreneurs think that once they have determine the product/service to offer, built a brand and started marketing, customers will start to come and profit will roll in, only to be disappointed. Most of these business owners fail to realize that they need to address their customers’ needs, hence providing solution to a problem. Like most experts would say, don’t enter the business if you’re just in there for the money. Money must be the secondary concern, first is providing solutions through your brand. If you fail to do this, people will try to find solutions elsewhere.
3. Poor Management and Leadership Skills
Lastly, most new businesses fail because the entrepreneur didn’t have enough business acumen to run his employees. Poor management and leadership skills can manifest in many forms. It could be that you’re unable to properly communicate the tasks and expectations to your staff; you’re unable to reconcile conflict within the internal structure and you’re unable to arrive at a quick and wise decision when required. Your staff would easily lose their respect to you as their leader because you fail to live up to their expectations of a wise and great leader. This then leads to a domino effect of poor production quality, financial management and everything in between.
Expect to meet several challenges when running a new business, and prepare for the worst. The first several months of the business is very critical in establishing your brand and image, so it is best to do your legwork before then. It is important to remember that the success of your business does not happen by luck, but through sound and strategic planning and execution.