I Know Why Entrepreneurs Fail.
- Akino Davis
- May 19, 2024
- 5 min read
This Newsletter edition is brought to you by SME Digital. Our Mission is to Develop and Empower the next generation of Caribbean Entrepreneurs to launch and grow successful businesses.
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"Imagine setting sail across the Atlantic Ocean without a compass or chart; that is what it is like to launch a business without the assistance of a coach or mentor."
The journey of being an entrepreneur is a thrilling experience that is filled with aspirations of independence, innovation, and success. Nevertheless, this path can become intimidating very quickly, which frequently sees a great number of entrepreneurs with sparkling eyes fail early on in their journey.
In my two decades as an entrepreneur and as a business coach, I’m guided by three (3) key statistics that inform my approach to coaching new and aspiring entrepreneurs:
20% of new businesses fail within the first 2 years of starting.
87,780 businesses fail each year because entrepreneurs ignore valuable feedback and
70% of startups fail because they scale up prematurely.
When it comes to launching a new business, the landscape is filled with unanticipated challenges and steep learning curves. This is a harsh reality that comes with the territory. What is the primary concern? A significant number of new business owners traverse this complicated landscape without the assistance of a mentor or proper feedback, much like sailors who venture into unfamiliar waters without the use of navigational equipment.
Identifying the Problem.
The attractiveness of entrepreneurship mostly comes with a narrative that is characterized as individualistic: the lone wolf triumphing over the corporate world despite the presence of all odds. Even though this makes for an interesting narrative, it is a dangerous reality. It is common for new entrepreneurs to enter the business sector with a strong sense of passion and determination, but they often lack the expertise necessary to effectively manage the numerous problems they face in the real world.
The major problem in this situation is not simply a lack of expertise; rather, it is a severe underestimation of the significance of mentorship and coaching and the function that constructive feedback plays on the individual. In the absence of these, entrepreneurs miss out on the opportunity to gain knowledge from the triumphs and mistakes of others, and or the expertise and knowledge of a coach, to comprehend the requirements of the market, and adjust their strategy accordingly.
Common Solutions and their Shortcomings.
To overcome these obstacles, new business owners seek out resources on the internet, and books, or enroll in short courses. The use of these tools is beneficial; I have written books and put out courses, but, they cannot take the place of receiving individualized instruction.
Although they offer basic knowledge, they do not provide the individualized guidance that a coach or mentor can provide based on their understanding of the current market dynamics and their experiences in the real world. Furthermore, these resources capture periodic insights and are unable to offer real-time feedback on business decisions, which is an essential component of successful entrepreneurship.
Another typical strategy is to consult with close friends and family members for guidance. However, despite their good intentions, these individuals might not possess the business acumen or objectivity required to offer the kind of constructive criticism that is necessary for development and improvement. More times than necessary, close friends and family will tell you what you want to hear, platitudes, not wanting to hurt your feelings with the needed truth, which ends up doing the entrepreneur more harm than good.
Recommended Solutions and Approach.
Within the context of my role as a Business Coach, I would like to underline the crucial relevance of incorporating mentorship, coaching, and open feedback systems into the core strategy of your entrepreneurial journey:
Searching for the Appropriate Coach or Mentor: You should look for mentors or coaches who have successfully navigated the route of entrepreneurship and are familiar with the industry in which you operate. A good coach is someone who functions not only as a guide but also as a sounding board for your ideas, assisting you in identifying potential hazards and directing you in refining your business strategy.
Creating a Feedback-Rich Environment: Not only should you encourage feedback from your coach, but you should also encourage feedback from clients, peers, and even competitors. Customer surveys, feedback forms, and peer evaluations are all examples of tools that can provide essential insights into how your company is seen by its customers and help identify areas in which it could be improved.
Joining Entrepreneurial Networks: Having access to entrepreneurial networks is extremely beneficial since it allows one to connect with potential mentors, coaches, and entrepreneurs who share similar interests, and industry experts who can offer a variety of perspectives and advice.
Continuous Learning and Adaptation: Make use of the feedback to continuously modify and improve your approach to conducting business. Entrepreneurship is a dynamic endeavor; what is successful today could not be successful tomorrow. Maintain a flexible frame of mind and be willing to adjust your strategies in response to dependable feedback and fresh information.
Formalizing Coaching and Feedback: You should treat coaching, mentorship, and feedback as formal components of your business strategy. Maintain a regular check-in schedule with your coach or mentor, and make it a habit to collect and evaluate comments methodically.
Conclusion.
When it comes to getting started in business, the road to success is rarely a straight one. The journey is a winding path filled with mistakes, lessons learned, and experiences. The significance of feedback and mentorship is something that cannot be denied, and it is the most important lesson that you can learn early on.
If you incorporate these components into your business strategy, you will be able to provide yourself with the compass and map that you require to successfully navigate the intricate waters of entrepreneurship.
Take care not to isolate yourself. Make an effort to communicate, listen, acquire knowledge, and adjust. Always keep in mind that every bit of criticism or advice is a fantastic opportunity for personal development. Your Business Coach is here to help you navigate this process, assisting you in not just avoiding failure but also paving the way toward long-term success.
The world of entrepreneurship is indeed difficult, but if you have the correct tools and direction, it can be an extremely gratifying experience.
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See you in the next article.
Whenever you are ready to take your business to the next level, there are three (3) ways that I can help you:
Becoming An Entrepreneur: Beginners Guide Ebook: An Essential Road Map to Entrepreneurship, packed with insights, strategies, real-life experiences, and advice to turn your business aspirations into reality.
The Business Launch Coaching Program: This comprehensive program, tailored for aspiring and new entrepreneurs, will equip you with the knowledge, skills, and strategies to transform your business idea into a successful venture. Through interactive workshops, expert guidance, and personalized coaching, you'll gain the tools and confidence to navigate the challenges and opportunities of entrepreneurship to:
Enhance your self-awareness and personal growth,
Master effective communication and interpersonal skills,
Set SMART goals and develop actionable plans,
Overcome challenges and build resilience,
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Experience Transformational Growth.
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