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Why Entrepreneurs Fail

 

True entrepreneurs are struggling with their business opportunities for a variety of reasons. The lack of capital, lack of understanding about marketing, and personnel issues are among the most obvious. However, from my own entrepreneurial experience and knowledge of others, there are three main reasons for individual failures in entrepreneurial ventures.


1)They tie the success of their business to their own worth.

2)They neglect to set realistic goals and plans for themselves and their businesses.

3)They're not prepared to pay the price of success.

True entrepreneurs with the right mind prevail over a period of time. They have learned to understand the Roles, Goals,

Roles 

Successful entrepreneurs, unlike those who struggle, have learned to separate their roles in life from their self-esteem or self-identity. They understand that the performance or failure of their own venture is not their judgment as an individual. People who tend to match their self-esteem to their composite role identity are inherently risk-adverse and seek to maintain the status quo. Being able to differentiate these two identities enables them to be risk-prone vs. risk-adverse, a key ingredient of success as an entrepreneur. Individuals who risked failure, experienced it, and learned from it, not only learned how to distinguish their role identity from their self-identity, but also learned the lessons of risk and failure. They understand that early business failure is a natural part of successful start-ups. They can embrace these experiences, learn from them quickly, and move on. This is crucial to success as an entrepreneur. They have to be willing to face and deal with early failures in order to prevail over time.

Goals

Although much is said and written about goals and plans that are necessary for success as an entrepreneur, few people learn the mechanics of successful goal setting and planning. It is not the plan, but the planning that is important, and the goal-setting process allows them to build confidence to take risks and fail. Successful entrepreneurs are not only goal-driven and objective-driven; they have learned how to implement the strategic and tactical goal setting and planning process. Visualizing the goals, writing them down and putting together a detailed plan for achievement gives confidence and motivation to prevail. More than just business or operational plans, they have goals and plans for all the important roles in their lives. They learned early that if they're not working on their own plan, they're probably part of someone else's goals or plans. They chart their own destiny, adopt risk-taking leadership positions, make adjustments as required, and prevail over time.

An entrepreneur has a lot to learn in order to be successful, including the day-to-day mechanics of running a business, producing products, delivering services, making money and dealing with people. The greatest challenge of all is to develop an understanding of themselves. They come to grips with what they want and what motivates them; this maintains their willingness to prevail against adversity over the long term. Successful entrepreneurs have learned to transform their thinking, allowing them to prevail when others fail along the way.

In the end, entrepreneurs understand that there is a toll to pay. You must be prepared to pay full price one time to be successful in any role in life. As an entrepreneur, there are really no overnight successes. In fact, I've heard it said that overnight success generally takes 15-20 years.

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