Why Do People Fail In Business – Reasons Businesses Fail
If you are able to detect the mistakes of why people are failing in business, you are going to be able to prevent them in your own business, see when your friends make mistakes, and you’re going to be able to help them stay on the path to starting a business successful.
https://www.youtube.com/watch?v=E7bqRRRZ9HA
What is the first mistake that you can avoid? What is the first thing that I’ve seen from coaching more than 300 people over the past few years in starting their own business?
The first thing is that people don’t focus. They want to chase the next dopamine of a new business idea, a new venture, and new thing they want to do. Not everyone should become a serial entrepreneur. In fact, 99% of entrepreneurs should not become a serial entrepreneur. If you are not able to start one business successfully and reach it to seven figures, I don’t believe you should go ahead and start multiple businesses and try to make too many things work at the same time, or give up your first idea just because a new, shiny object has arrived. I see entrepreneurs make this mistake over and over when they are looking for the next opening of the next new idea that is fresh because it is so much fun doing the easy first steps when coming up with new ideas. This leads to failure.
Why does this lead to failure?
They will not reach great results like that. It is exciting to keep starting new ideas, it is exciting to form new partnerships, it is exciting doing the corporation, and it is exciting getting that first sale. People will give up because they never reach that level where their business is solid because they always keep chasing the next dopamine hit. If you are able to avoid this mistake, chasing the next dopamine hit, you will be able to differentiate yourself from so many other entrepreneurs because I see this over and over in entrepreneurs and they fail over and over because of this one mistake.
Set your life up to succeed
The second mistake I see people making one starting a business, which leads to giving up in failure, is that they do not set up their lives properly to support their business. For example, they still live with their parents or people are telling them, “oh you shouldn’t, it is too risky, you should get a job, you should take care of us, and you should spend more time with us then on the business and so on.”
Yes, you should spend time with your family and you should spend time with your friends. However, if you are starting a business you do need to dedicate a certain amount of hours to the business. There is no escaping that. If you don’t want to do that, maybe business is just not for you. But if you do want to do it, you should go out and live alone, preferably, or if you are married then with your spouse, and make sure you have that private space to which you dedicate to building your business and make private time to dedicate to building your business. Tell people you are working on this now.
Find supportive friends. Even if you have to abandon some of your old friends and spend less time with them, it is worth it if you’re committed to building our business because you are going to be able to find new, cool friends who are into business, who want to hustle, and make stuff work. It seems a little ruthless, I know, but if people really don’t want to support you, in some cases that is what you have to do.
Now what else do you need to set up in your life?
You need a good Internet connection. You need to be able to stay in one location and have good sleeping habits. Not go out until 7 AM every single day, but maybe twice per week. I used to go out every single day and party and it was very bad for business. You need to be able to have some stability in your life to build that business on because your business depends on how stable and well organized your life is. If it is complete chaos, your business will be complete chaos. When businesses are complete chaos, they just do not work.
Do not forget
The third mistake I see people make on starting a business is they just forget. They go on a three week holiday because they made $5000 in their first sale, and then they lose all sales momentum when they come back and think, “I don’t know why I was doing this and it just seems more passionate and fun when I travel, have fun, meet new people and have vibes. That just seems more fun and all this business is uncomfortable when being the one in charge. Why don’t I just get a job?”
Then they get a job where they can’t travel anymore and bye-bye passion, hello weekly grind and being stuck in traffic! If you really want success in business, you should focus on the business and focus on building momentum and maintaining momentum. If you do lose it somehow regain your momentum. You need to have the belief that you can keep doing it and will keep getting results.
Change of framing
The fourth reason new people give up and failing business is because they get re-brainwashed by someone with a stronger frame. They meet some business owner and he runs in this $20 million business and he is saying, “That is cool what you are doing, why don’t you come work for me? I am going to mentor you and teach you and everything is going to be just great, but you work on my dream now.” These people then think, “Wow I get to work on his story and his story seems so much cooler than my story. Why don’t I just go join his story and work on his life and his business?” What ends up happening is you have a job.
Why did that happen?
You need to have a balance in your mind and your life that on one hand, you need to be a little bit paranoid with people like should you trust them, should you believe this, should you buy into this, and should you go and work on their story. And on the other hand, you need to have a belief that people are awesome, people want to help, and so on. You need to have a balance of that.
Most people are either too much on the side of paranoid, which is kind of insane, or the other side and they are too gullible – you need to kill these. You can’t be too paranoid or too gullible, but a combination of these two beliefs in your mind. As a combination they are very powerful. This is one of the skills that you need to develop because the world is not black and white. You need to combine the two and that makes you very powerful in your business relationships, your relationships in your life, and also in negotiations and sales.
Personal development stops
The fifth and final reason that people give up and fail in business is that people don’t keep developing themselves. They don’t keep developing their mind, don’t keep reading, they don’t keep up on their skills, they don’t keep developing every little single part of their business to the absolute optimal point. They just coast along, get some sales per month, and they are just happy with that. What happens is, if you’re coasting along and if you are not hustling and making a move forward fast, you are actually going backwards because someone else is (everyone else is) going forward.
What happens is, people fall back on consumerism. “The four Horsemen of poor-pocalypse” is what they call it consists of consumerism, you playing video games, partying all day, and finally depth. Once you have those four things, it is really hard to still be an entrepreneur because you are focused on all these unimportant things in life and you are not focused on creating and building stuff. You were just focused on being a consumer now and you think everything is fine in the world as good as it is. You think you don’t need to change anything, you can add some TV, relax a little bit, and you could smoke a cigar and everything is going to be just fine. Then you end up getting a job and winding up in traffic every morning and you are back to being mediocre.
Do you want that? It sounds a bit harsh, but that happens all the time when a lot of people give up their business like that. Please don’t become one of them. Since you are reading this, just know that I want you to succeed and I know it could sound a little negative at some points, but I want you to learn from the failures and embrace these failures as something you would not accept. Reject them and stay on your path.
That’s what it takes to become an entrepreneur.
