Even if you fail, being prepared for this type of event will allow you to gain experience and give you a better chance of success down the road. You can also comfort telling yourself that you are not alone: some of the biggest names in business, from Bill Gates to Walt Disney, and even Steve Jobs, failed in their first ventures before they found the super successes. that we know today.
So why is your first business likely to fail? Find out in seven reasons.
1. You are (probably) not an exception
There are several variations on the exact statistic, but most studies agree that the vast majority of businesses end up failing. Some say that around 4% of companies are over 10 years old, and more than half perish in their very first years. It is comforting to believe that you are the exception to the rule or are more likely to be successful than your peers. But statistics suggest that’s not the case.
2. You are inexperienced
There is a reason seasoned professionals are bound to be more successful than amateurs: product experience, skills and knowledge. If this is your first time starting a business, you will not have any prior experience to lean on when making certain decisions, setting direction, or facing tough challenges.
Indeed, other professional experience, such as being in a managerial position, significant knowledge of your field or recurring work with other entrepreneurs can substitute for a certain level of experience here. But until you’re in the driver’s seat, you won’t know what it takes to run a business.
3. You won’t take any risks
First-time entrepreneurs tend to be more conservative than their more experienced counterparts. A reaction partly due to a lack of confidence, which itself stems from a lack of experience. Part of this is that newbies have access to fewer resources than their more experienced counterparts.
And that means they are less able to tolerate financial instability and are more dependent on the success of their business. The more conservative path can potentially lead to win, but taking risk sets you apart from your competition.
4. You don’t have enough contacts
Likely, you will not have an extensive network when setting up your first business, even though this will play a significant role in the success of your start-up. Your contacts will provide you with potential customers, partners, suppliers, and even employees. And if you’re lucky, maybe even investors or mentors who can advise you.
5. You can’t rely on your instincts yet
When properly developed, your intuition can become a valuable tool for your strategy and decision making. The “right” instincts are usually the product of experience: great chess players can “sense” if their playing actions are correct, almost unconsciously, for they have played a thousand times. Likewise, seasoned entrepreneurs can detect which options are better than others, and have a greater likelihood of leading their respective businesses in the right direction.
6. You are too impatient
When you start working on your first business, you are often nervous and impatient. An enthusiasm which, on the other hand, can end up becoming an obstacle to your success. If you are too impatient, you will tend to go in many different directions simultaneously, pursuing different ideas simultaneously rather than focusing on the specific and immediate needs of your business.
7. Others will not take you seriously
The sad truth: Most people, including investors, partners, employees, and customers, won’t take you seriously if you’re a first-time entrepreneur. They are well aware that less experienced entrepreneurs are much less likely to be successful than others, and may refrain from supporting your business simply because they have a slightly lower chance of succeeding with you behind the wheel. .
All of these factors might sound daunting, but the real lesson here is that failure in your business isn’t the end, it’s a start . Every failure in your life, from small, discreet mistakes to tragic events, will teach you something and give you the experience you need when you decide to grab the next opportunity. If your first business fails, your second may be more likely to be successful. Successful entrepreneurs thrive on failure, so don’t think of failure as a word to avoid. Instead, think of it as an essential step on the path to achieving your entrepreneurial dreams.
and here TIPS TO PREVENT YOUR BUSINESS FROM FAILINGYOU MUST TO KNOW
