Top 10 reasons businesses fail

By M.Farouk Radwan, MSc.

I failed more than 20 times

I am not sure how many failed attempts i had to go through because i failed so many times but what i am pretty sure of is that i tried more than 20 times. In my book From 0 to 1 million dollars i said that i became a millionare but that didn't happen before i failed so many times.

It's hard to go through all of those failures without spending some time thinking about what went wrong in each of those attempts. As a result of the continues thinking and analysis i made i came up with the top 10 reseasons businesses fail.

I complied the list here in order to help you increase your chances of success and avoid making those fatal mistakes that could kill any business.

1- Weak faith in your business idea

If you started a business without having much faith in it then sooner or later the setbacks you will go through will force you to quit. Don't start a business unless you have solid faith in your business idea.

2- Thinking that people are like you

Do you like a certain idea? Who told you that people will like it? Some products might be the perfect soloution for your own problems but if your customers have different problems then your product will never make it.

3- Working with the wrong team

Even if you have a great idea this idea can still turn into a mess if you had the wrong team. The team that implements the idea is as important as the idea itself.

4- Not targetting an unmet need

Are you thinking of cloning an existing business? Then you will fail. In order for a business to work it must target an unmet need. Why would anyone bother to join your new social network when Facebook is there?

5- Not understanding your customers

If you don't know your target customers very well you will never be able to provide them with what they are looking for. You won't find unmet needs until you understand your customers perfectly.

6- Lack of passion for what you are doing

Some people succeed without passion but the majority fail. Passion is the thing that could keep you going when everything else goes wrong.

7- No clear marketing strategy

Products don't market themselves even if they are great. You don't have to be a marketing Guru in order to start but you need at least to have a marketing plan.

8- Following a trend

Everyone is making mobile apps so let's make an app. This way of thinking might get you in a place that you don't belong to and as a result you might fail.

9- Low risk tolerence

Starting a business is a risky business. If you can't withstand financial losses or unpaid bills then you need to work on raising your risk tolerence before you start a business.

10- No significant competitive advantage

Want to start a blog? There are millions of blogs out there. What is the signigicant competitive advantage your blog will have that will differetentiate it from other blogs?

It's ok to fail

It's ok to fail but it would be much better if you managed to minimize your failed attempts. By reaading about both success and failure stories you will be able to avoid so many mistakes that others already made.

The business world is tough and each failure can break you if you are not 100% psychologically prepared for it. Yes failure might be unavoidable in some cases but you should at least do your part well before you begin.

I have managed to become a self made millionaire at the age of 28. This didn't happen by chance because i already wrote that goal down five years before i accomplished it. Becoming rich is not about luck, starting big or being intelligent but its all about having certain beliefs about money and life.

In The Ultimate guide to becoming rich i will teach you everything that you need to know in order to become rich.

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