As much as we would all like to run our own businesses, there is a harsh reality to face. The simple fact of the matter is that most entrepreneurs fail. There are many reasons why and it is not a pretty statistic, but it is the harsh reality that entrepreneurs face.
But why do so many hopefuls fall to the wayside? Why is it so difficult to succeed where so many others have failed? Here are a few of the biggest reasons why entrepreneurs do not succeed.
Overbelief in Viral Marketing
We hear about it all the time: viral marketing. Having the next big ad campaign that grabs the attention of the entire online community, making that product instantly recognizable to the masses. Surely, that is the way to a successful marketing strategy.
But the fact is viral marketing is like winning the lottery. It happens enough to make it real but so little that it is a rarity. Proper marketing means spending money to attract customers. If you can’t attract customers, businesses fail.
Getting Funded Means Succeeding
Your business has a great new idea and now you have the backing of venture capitalists. With funding in tow, that means your business has made it, right? Not so fast.
Funding is great and some businesses don’t even get past that stage but there is far too much race ahead to call it a success. In most cases, VCs will try to control the venture they are funding and will then dilute ownership interest. If anything, funding comes with so many strings that it doesn’t feel like it’s worth it.
Relying on Mentors
While it would be great to have someone trustworthy and knowledgeable to turn to, the reality is that we are all human beings. Far too many entrepreneurs lean heavily on a “mentor” who really only knows a little more than the entrepreneur does.
There are some great mentors, but there are others who are glorified cheerleaders. They may not have the skills needed to make the business succeed but offer up advice anyway. That leads to bad decisions and failed opportunities.