Top 3 Reasons why Entrepreneurs Fail

3 rookie mistakes entrepreneurs make that have proven to be fatal for their careers

Setting up your own business always involves risks and no one guarantee you success at the beginning. It is the decisions that you make along the way, that have the most impact on the fate of your business. You can’t control all the factors (and remember that you should not try to either) but there are certain sure ways that have proven to be fatal for businesses. Here are top three rookie mistakes that entrepreneurs make, which plummets their business down the rabbit-hole.

1.     Don’t be an accidental entrepreneur

So let’s begin with the foundation. Before jumping to the planning and execution phase, STOP! And ask yourself if this is what you really want to do and why you want to do it. Be honest with your answers because you can’t and shouldn’t lie to yourself. Ask yourself what is your long term goal with this.

Before starting anything, you should be absolutely clear about it in your mind. And no, don’t confuse this with having an entirely perfect business plan penned down from day one. This is not possible and things are bound to change along the way. But you should know your goals with choosing an entrepreneurial path. If you are in it just because it is the next cool thing for the decade, then chances are that you will fall into the trap of being an Accidental Entrepreneur and that is not a good start.

2.     Know your product and audience

Now that we have established that you have chosen this career path for yourself and not just stumbled upon it, we can go ahead with the preliminary phase of doing market research. I get it, crunching the data and collecting market surveys is not a dream task but it is just one of those fundamental steps that can’t be skipped. I can’t stress on this point enough, on how important it is to know your customers.

We have entered the realm of digital marketing, and people are blasted with tons of information through internet every single day. If you are not completely aware of the needs of your customers you are going to be another failed product that will land in junk folders. So know your audience and build a product that they need or be proactive enough to create the need for that product.

3.     Communication is the key

So now you have made the product and have successfully marketed it to your targeted audience. Another common mistake that entrepreneurs make is that they don’t communicate with their customers. Don’t think that your job is done once your product has reached the customer. No, the real work actually begins after that.

The experience that your customer will have with that product is going to determine whether that person is going to come back to you or not, so be extra careful. Answer queries on time, listen and respond to feedbacks and most importantly be open to criticism. Building a loyal customer base is extremely important for any business to be successful.

Above all, be open to experiences. Understand that you will make mistakes, but it’s how you react to them that make a whole lot of difference. Begin by knowing yourself, then follow to knowing your audience and build a relationship with them for a thriving business.