“So, why do things go wrong? What can entrepreneurs do to avoid such mistakes which can go potentially fatal for businesses? Or are such failures the rocket fuel that take businesses to the next level? Let’s start by taking a closer look at why failure happens. According to this Emergic.org post, there are multiple areas where entrepreneurs err:
- Too much Vision: This is where the long-term thinking gains precedence over the short-term. In the entrepreneur’s world, crafting the perfect future means starting to live in that imaginary world and disconnecting with the reality of today. (…)
- Wrong Idea: The assumptions behind the business may not wrong. The entrepreneur may be blind-sided: passion for one area could lead to ignoring another area.
- Wrong Product: This is related to the previous point but in this case, even though the problem may have been identified correctly, the solution to address the problem may be wrong. (…)
- Inability to Sell: This is something that technology entrepreneurs can be afflicted by. The belief is: build it, and they will come. Because the entrepreneur believes that the product is a terrific idea, little attention is paid until it is too late on how the selling will be done.(…)
- People Mistakes: People are critical to every venture, and an entrepreneur can make mistakes in hiring or in allocating responsibilities. (…)
- Flawed Execution: This essentially boils down to bad management. Most entrepreneurs tend to be passion-led, rather than process-driven. So, many decisions are made intuitive and ad-hoc rather than backed up with up a lot of deep thinking. (…)