Why people fail in Business:

Why people fail in Business

India is one of the fastest emerging economies with GDP growth of 7.44%. Government of India is focusing on programs like Startup India and Make in India to encourage aspiring entrepreneurs to start their own ventures. Everyday lots of new startups starts in India, a survey done by Times of India published on Aug 09, 2017 stats that 83% of workforce prefers to become an entrepreneurs, literary it’s a very big number, there is a saying out of every three MBA graduates  one want to start his or her own business. There is very high potential as far as policies, environment, scope are concern.

Yet, huge amount of new startups dies every year; study says 90%of startups fail within their 5 years of inception of their venture. The figures are frightening, but this also shows the potential and scope an individual have to start their own venture. Today, let’s have a look on the factors because of which any startup or new venture fails. If we can keep in mind these things, we can avoid losing the game and as study shows that only 5% of adult Indians establish own business (report issued by economic times on March 19, 2018). Before starting with the reasons there is a great saying in Hindi i.e. “Iss duniya me kathinahiyo ki kami nahi, haara wahi jo lada nahi” means “There are lots of obstacles in paths of the journey, and the one who didn’t fight with those obstacles losses everything.”

1.       Lack of Research:

Usually, people think they are fully equipped with the information and knowledge but mostly new entrant’s jumps into the business without proper research. This is the biggest reason why any startup fails. To avoid this one should study and do the research on industry as a whole, study your competition, study micro and macro environment affecting your business. Questions like why’s and how’s need to analyze carefully. Sometimes a small ignorance can lead us to big disaster. If you have experience in the same industry it’s an added advantage but if you are not then you need to go little extra mile and do your research and study carefully before entering into the venture. To know more about how to find a career click here https://bit.ly/2UZRjqa

2.       Wrong SWOT analysis:

It is the part of your research, SWOT analysis done on regular basis. If you are entering into the business and once you are in the game too. SWOT as we all knows stands for Strength, Weakness and Opportunities, Threats. As a startup one need to do analysis of strengths and weaknesses of self, also of industry in which they are planning to enter. Also, you need to analyze possible Opportunities and Threats to their business on continuous basis. In SWOT, SW is the analysis depends internally and OT depends on external factors. So now focus on the all the factors and analyze the situation and act so.

3.       Lack of Innovation:

This is one of the prime reasons that today we are living in India with harsh reality that today most of the youth in India is just educated and low at knowledge gain; shown in the research done on post graduation students. Today lots of initiatives and programs are successfully running not only in India but in other countries to overcome with the problem, and in my view we need to upgrade our education system to solve this issue. It’s time for entrepreneurs make themselves more innovative and creative in solving issues and problem related to business and personal lives. To innovative you need to open up your mind, connect with nature, upgrading your knowledge and skills primarily and you can start innovate gradually.

4.       Misreading challenges:

One always misread challenges, issues or situations merely due to lack of knowledge, ignorance, over confidence, greed etc. Sometimes challenges are internal as well as external, the ability to analyze challenges is an art which one can learn with their past decisions, visualizing future of your business, Study about competition etc. In business world, what needs is calculative on the amount of risk you can bear; think over parameters on which survival and success of your business depends. In business nothing is right and nothing is wrong, it’s all about situation, behavior and knowledge which leads your decision a big hit or a failure.

5.       Fear of failure:

This is the biggest reason which no one in the world faced in their life time not ones but multiple times. To know more on how to overcome fears just click https://bit.ly/2SxIUxM . Any business ventures need lots of decisions to make and to make decisions one need confidence in self and the system which he or she is developing in their business. Generally, fears comes when there is uncertainty and risk, in business acumen usually you dealt in with so many situations full of these things, here your guts play a very important role to move ahead. Again it is very common and most destructive feeling and the one who overcome with this will certainly creates history.

6.       Over thinking:

Thinking is pervasive and yes it fits in business as well. As business owners, we need to think a lot on various stuffs and accordingly make any move. We think about finance, marketing, quality, PR, sales, inventory, competition, global situations etc and as a startup we think a lot and sometimes we over think which a matter of great concern is. As an entrepreneur we need to know when to think, how much to think and when to stop thinking because over thinking leads to confusion and confusion creates indecision and this will leads to grow fear on situations which are not at all present. We think about the people who never tried entrepreneurship and usually takes their views to tackle your challenges, it’s a problem because these people are not at all know the kind of struggle and challenges you are dealing in and just throwing pieces f advises, and we start thinking over their advises. Strictly speaking don’t follow such advises.

7.       Negative self talk:

One of the basic natures of human being is that we do a lot of talk to ourselves and most of it is negative only. It’s a fact no one can argue on this. When things are not going in a planned way our negativity starts capturing our minds and once it started it’s a never-ending process. It’s a human nature to think negative but you can overcome with this feeling by doing meditation, exercise, small walks in fresh air, taking deep breaths etc. Every entrepreneur needs to fit mentally and physically which clears out negative thoughts and start focusing on positive energy.

8.       Fear on finances:

There is a saying that self confidence https://bit.ly/2Syc7IO  of a person is directly propositional to the amount of money he or she have into their pockets. It’s not universal yet it is an important factor which we can’t ignore. As an entrepreneur most of the time we struggle with the inflow of money into business and which is a matter of concern. In this situation usually most people stuck and give up. What you need to understand here is that it is just a temporary phase which will pass by. We had seen that most of the people give up when they are at the verge of getting success. Just focus on how you can increase the inflow of money and the best solution is start selling your product or services, once it started things will work out accordingly. How to do sales effectively just click here https://bit.ly/2GuS7jQ

9.       Lack of motivation & passion:

Now, here is the glitch because many a times people enter into any new venture just their peers are doing that or looking for the profit margins. I am not saying that is bad but initially what you need to analyze is about your capabilities, limitations, personal challenges, your passion, are you really want to start that or not, are you motivated and how long did you motivated before starting your venture these are some of the serious questions which one need to ask self. Never make impulse decision; you need to hear your inner voice which says it all.

10.   Involving family into business:

When you start a business usually in India people questions you why you want to business rather asking what business you want to start. It all started from family, friends and relatives, acquaintances etc. When you start working on your venture try not to involve your family and friends into business decisions. Important tip here: Generally, we discuss business matters with family and friends who are doing jobs and not business. They are not risk takers, not at all experience in owning a business so its better not to take their advice’s every now and then.

11.   Fail in finding a mentor:

We all need a proven mentor in our professional lives and to find a good mentor is very difficult yet it’s not impossible. Make a note that age doesn’t matter to become a mentor, what counts is the amount of experience and level of success.  Every entrepreneur need to find out proven mentors and keep oneself open for learning new things. Most people fail because they don’t have mentors.

12.   Don’t focus on core expertise:

When money is not flowing in and managing things will go from tough to tougher many of the new bee’s loss their focus and start exploring new ventures to sustain the inflow of money. This will make things worse because you nether focus neither on your business nor to the new job or venture you enter. Never put your nose in different kind of ventures simultaneously at primary stage of your business, just focus on your core competencies and explore more avenues within that only. Once your business stables and money is no more a concern then you can think of diversify.

These are the reasons if you work in these things you will surely overcome the hassles which you faces in your everyday life as an entrepreneur.  Failing in not the end of the world what you need to do is to keep faith in your capabilities and decisions and you will see your destination where you want to lead your business. If you have your own experience to share please comment below this helps to the people who are in need.