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4 Reasons Entrepreneurs Fail and How You Can Avoid Them

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4 Reasons Entrepreneurs Fail and How You Can Avoid Them

So you know you want to go the route of the entrepreneur, blaze a trail and help people along the way. But how? You’ve heard the often quoted stat that 90% of all new businesses fail within the first five years. But what causes these failures? If you know what to expect then you can plan how to steer clear.

Here are four reasons entrepreneurs fail and how to avoid them:

1. Trying to do it alone

The story of the lone individual, working tirelessly in a garage (or at a laptop) and becoming a self-made millionaire is just that, a story. No one makes it alone. According to multimillionaire entrepreneur Jordan Harbinger,The best people in any field always get coaching.

You need a coach. It’s possible you have a mentor at this point. A mentor is often someone from your recent past, such as a college professor, manager from a job you’ve had or a friend who is a little further along the life journey than you. are A mentor offers free advice, allows you to bounce ideas back and forth and encourages you. Mentors are people of value in your life. But a mentor is very different from a coach.

You pay a coach for their expertise. Generally a coaching relationship is for a specific number of sessions over a defined period of time, along with some communication between sessions. Although a coach will encourage you, that’s not the primary focus. A coach looks at where you are, helps you discover where you want to be and walks you through the process to get there. The best coaches give you very practical steps to reach your goals, then hold you accountable for taking those steps. Your coach will push you further and faster than you thought possible. They will do more for you than any mentor because, in part, the success of the coach is dependent on a satisfied client. Clients who succeed with the help of a coach are exceedingly happy.

“Sometimes you have to do what you don’t like to get where you want to be.” –Tori Amos

2. Quitting instead of pivoting

Let’s make this very simple. Most new businesses don’t fail due to lack of cash, a poor market or a bad location. Most new businesses fail because the owner decides to quit, when what they should do is pivot. There was a time, not that long ago, that Apple was about to go bankrupt. The company had been losing money for a dozen straight years and poured over $100 million dollars into a failing product, the Apple Newton. By early 1997, Apple was in serious trouble. Had Apple stayed on the same path they would have faded into oblivion.

But that didn’t happen. Today Apple is worth over $700 billion. Why? Because Apple pivoted. They hired back one of the original founders (Steve Jobs) who cut the Newton immediately, made a deal with the previous enemy (Microsoft) and reinvented both the categories of portable music players and cell phones (with the iPod and iPhone). Many other amazing devices followed.

When you are in the midst of what you think is the end, it’s probably not. It may be the end for a particular idea, method or product, but it’s only the end for your business if you quit. Entrepreneurs who succeed know when to pivot.

 

3. Expecting they’ll love everything about being an entrepreneur

Most entrepreneurs are excited about the idea of working for themselves. They assume that every hour of every day will be filled doing creative and fulfilling work. When that’s not the case they often stop trying and look for the thing that will allow them to have every day and hour filled with creative work. The process repeats itself over and over. It’s a futile pursuit.

The good news is that many hours will be filled with doing creative and fulfilling work. The bad news is there are things you’ll still have to do that you don’t love. Successful entrepreneur and New York Times best-selling author Jon Acuff recommends every budding business owner create a “grit list”. These are the 10 things you absolutely despise doing, but must be done anyway.

I won’t belabor this point. Just know that while building your business you still have to do some things you don’t enjoy. Create your grit list of these things – then next to each one write down the value they bring to your business.

 Why do I have to fill out an expense report? That’s not my dream. You have to fill out an expense report because expense reports must be filled out.” – Jon Acuff

4. Not having a plan

You need a plan for your business. Not a 10 year all-encompassing plan. Those never work out. A plan for the next year. Perhaps as long as 3 years. The plan should have goals and action steps. It’s as simple as that. Then write it down. Your odds of accomplishing the goals on your plan go way up if you write it down.

On a personal level I had a recent business that was failing. Do you know what I did? Hired a coach, created a plan, pivoted when my coach suggested it and did what needed to be done. Did it work? Yes. If not you wouldn’t be reading this article.

 

Creating a successful business has no secrets. It’s really not about avoiding the wrong things, it’s about doing the right things. If you’ll hire a coach, pivot when necessary, know that some things just must be done and have a good plan then you’ll find yourself in that small group of new businesses that have wild success!

Which one of these four things do you need to implement into your business strategy to help your business?

I help people develop amazing relationships and love what they do every day. I'm a writer, speaker and coach and you can read my articles on great sites such as the Huffington Post, Addicted2Success, the Good Men Project and Lifehack. Happiness in life and passion in your work are my goals. Meet me at TroyStoneking.com and Troy Stoneking on Facebook.

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9 Comments

9 Comments

  1. Awais Afzal

    Jul 18, 2018 at 8:14 am

    Everyone fails at first glance. But sometimes we need someone who can really help us and teach us where we actually made mistakes. The young entrepreneur should always pay attention to another successful entrepreneur as how they manage their things and takes a decision. But it comes gradually. So a one should always have some patience.

  2. Hunter

    Mar 2, 2016 at 2:40 am

    I feel that I have been guilty of doing all of these things. I think that the hardest part of letting people in is being afraid that they will not understand my thought process or plan. With that comes the fear that they may try to convince me to change my idea or to do it a different way. The worst case possibility is if they try to explain that the idea or concept will not work at all. Pivoting instead of quitting applies to all aspects of our life. It’s like doing homework. If I can’t find the answer in my textbook, I can either give up or I can seek it elsewhere or ask for help.

    I feel that the last two go together. An important part of the plan that most people overlook is how they will deal with the aspects of entrepreneurship that they don’t like or can’t cope with. Entrepreneurship comes with the intended difficulties and long hours, but many people don’t consider the emotionally stressful and taxing side of it.

    This was a good reading and a great thought provoker. I enjoyed the read and look forward to more. Thank you for sharing.

  3. Stephen Osoko

    Dec 28, 2015 at 4:48 pm

    Awesome post. Trying to do it all alone was definately something I felt was the way to success in my early days however I’ve learned that you need some help along the way, be it from mentors, fellow entrepreneurs etc.Once again, great post!

  4. Robb Gorringe

    Nov 26, 2015 at 12:17 am

    Hi Troy,

    I like your recommendation of the “grit list”. It’s so true. There’s just some things that you’ve got to do.

    I also enjoyed what you said about having a plan, but making sure its not too far out ahead. 1-3 years is best. I tend to agree. Sometimes our goals are so “dreamy” that they’re as unreachable as outer space.

    Great article,

    Robb

    • Troy Stoneking

      Nov 29, 2015 at 11:00 pm

      Thank you Robb. Man, those “long term” plans are just WAY too far out for me…and I suspect most other people as well. I appreciate your kind comments!

  5. Shaf

    Nov 25, 2015 at 2:04 pm

    You know I generally renegade online article advice on success and development as rehashed politically correct content that provides zero value – because most of the Internet is like that. I thought the same about this site when I saw feeds on Facebook. Today I read through some articles like this one and have to say this site is different. You did hit on finer points that makes a difference on the path to building a business… and also in many aspects of life

    • Troy Stoneking

      Nov 29, 2015 at 11:04 pm

      Thank you Shaf. I do my best when I write, speak, consult and coach to make things as practical and concrete as possible. If it’s not actionable it’s not worth sharing.

  6. Addicted 2 The Grind

    Nov 23, 2015 at 2:57 pm

    Often times people fail because they are not willing to put in the work. If you work hard and smart you should see results. (#2 ^ ) Most people do quit to early because they don’t see the results fast enough. You have to be patient and put it the work. Great Post

    • Troy Stoneking

      Nov 29, 2015 at 11:01 pm

      You nailed it. I’ve been guilty of slacking off myself…more times than I care to admit! We have push through. Thanks for the great input!!

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Entrepreneurs

5 DIY Skills That Will Take Your Entrepreneurial Journey to New Levels

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An entrepreneur can be any person who builds and operates their own business. Entrepreneurs take on a greater risk than that of people who are employees of a business. Because of risks such as financial uncertainty, business oppositions and career stability, entrepreneurs possess unique skills not everyone has.

Make no mistake, entrepreneurs aren’t always born with these skills. Many obtain their business expertise by learning and growing in their industry. Whether you are struggling with your startup plan or wish to make your startup standout, you’ll need a specific set of skills to thrive.

You may already know some of these skills but you simply need to improve them. Take a look at these 5 DIY skills every entrepreneur needs:

1. The Ability to Communicate Eloquently

Every entrepreneur needs to be an effective communicator whether you’re a solo entrepreneur or you run a company with over 600 employees. You need to understand how to communicate effectively with business partners, customers and employees you deal with on a daily basis.

If you have underdeveloped communication skills, the growth of your business will suffer. Your success at getting your point across clearly can be the difference between sealing a deal and missing out on a potential opportunity.

When you’re an entrepreneur you should be able to express yourself concisely in the following scenarios:

  • Clearly explain policies and procedures to customers and clients
  • Answer any questions about your products and services
  • Public speaking during conferences or presentations
  • Friendly but fair demeanor towards your employees

Effective communication can foster excellent relationships with customers, employees and business partners. In turn, your relationships with everyone involved in the business will improve morale and efficiency.

Here are a few ways you can improve your communication skills: Active listening, understanding non-verbal signs, maintaining eye contact, assertiveness and dealing with different points of views.

2. A Talent for Sales

Having a talent for sales is a skill that will help you go far as an entrepreneur. This is especially true if you’re a merchant. If you’re selling goods you need to be able to sell anything and be knowledgeable about your product. As an entrepreneur, you’ll also need to know how to sell your business ideas to potential investors

Sales representatives are known for their tenacity. They’re extremely persistent in their pursuit to sell. Persistence is important in a business because a sale rarely happens on the first contact. Such resilience is vital to entrepreneurs who have to experience failure before succeeding.

Having a talent in sales will make you a successful entrepreneur because you’ll excel in these areas:

  • Share ample knowledge about products and services
  • Strategic prospecting
  • Building rapport with clients
  • Sourcing new business effectively
  • Gaining customer loyalty

Sales reps care about results but the way they achieve this is by being relentless and never giving up on their target.

3. Excellent Problem Solving Skills

In any business, there will be a few obstacles you’ll need to overcome in order for your business to grow. The good news is there will always be a solution to every problem; you simply have to think outside the box.

In order to solve problems effectively, you need to be extremely decisive. Sometimes this will require you to make decisions on the spot when a problem arises. As a novice entrepreneur, know that it’s acceptable to make mistakes; sometimes your decisions won’t be the best but they will help you grow your problem-solving skills.

Not everyone will agree with your products and services but this is a good way to test your problem-solving skills. For example, you’ve started up a food business but people may not be happy that there are no animal-free options. The way you can solve this problem is by implementing vegetarian and vegan dishes to your menu.

4. An Aptitude for Negotiations

Entrepreneurs face many challenges, especially when presenting innovative ideas to help expand the business. One skill needed which can guarantee the success of any entrepreneur is the ability to negotiate. Excellent negotiation skills can help you close deals and gain a positive reputation. While not all entrepreneurs have negotiation skills you can learn if you apply yourself.

An effective negotiation skill is to always be prepared. Have all your documents in place when you’re having a meeting and be equipped to answer any questions or inquiries effectively. When negotiating, always keep your emotions under control. Know that everyone has different opinions and you must be responsive in a professional manner when dealing with these views.

Make sensible compromises when negotiating. This means you shouldn’t give away anything unless you’re receiving something in return. Both parties need to understand this concept and need to accept any changes going forward.

If you’re negotiating because a problem arose with your products or services, try to write up policies and procedures for your company. Make them visible to all people connected to the business so you’re always covered legally.

5. Be Knowledgeable in your Field

No one will do business with someone who doesn’t know their own products and services. That’s why it’s imperative to have ample knowledge of the products and services you sell. You can then answer questions on the spot and give your clients in depth detail about what you can offer them.

A successful entrepreneur knows all the ins and outs of his or her business. This includes how products work, the materials used to manufacture them and if they’re safe to use. Make sure you know the process of your business and how you conduct your services. This will build excellent rapport with your clients.

Becoming an entrepreneur is something many people wish they could achieve but not everyone is brave enough to take the risk. What people don’t realize is that the skills are within reach if you’re only willing to learn. Simply tap into them by expanding your knowledge and build skills through experience.

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The Secret to Becoming the Most Desirable Person to Do Business With

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Marketplace distinction is a very important factor in business today. You might have discovered that several other businesses offer the same or similar solutions that you do. This creates tough competition to get customers.

Being first to the market often gives an initial edge but that doesn’t last as innovation and marketing strategy changes the expectation and taste of customers. Blockbuster Video was once an industry leader but now it is eclipsed and out of business because of Netflix. There was a time Blackberry phones were at the top of the smartphone world as well. Now they have been outclassed in that market.

You must have noticed also that the companies with the best products and services are not always the ones with the best business. In fact, it is a common notion that smaller companies often offer better services than their larger competitors. This perhaps is because of the fact that they have smaller clients and can offer more tailored solutions and customer service. However, the majority still keep rushing to the largest companies in the industry. The common assumption is that the product or service is better, but in several cases, it’s not.

Becoming the company with the best business in the industry depends on how desirable you are to do business with as an entrepreneur. And if the business is a large corporation, the business depends on how desirable the managers and company representatives are as well.

We live in a day and age where clients and customers are emotionally driven towards making a purchase and then create a logical reason to back up their emotions. Nobody buys if the logic says yes but the emotions say no. This is why several companies today are trying to associate their brand with known social vices. You do remember the Nike ad with Colin Kaepernick and the Gillette ad that sparked a lot of discussion on social media. You don’t have to go that far if you don’t want to as there is another way.

“Know what your customers want most and what your company does best. Focus on where those two meet.” – Kevin Stirtz

There is a local community I once had to live with. The community was famous for its spiced roasted meat. It was sold on the street by the locals. When people come around to buy from them and speak English, they sell at their usual prices. But if you approached them and spoke their native language, they will be beaming with smiles and you can walk away with as much as a 50% discount. Why? The most beautiful thing to the ears of any person is their own language, especially when they least expect it.

This can be flipped into the business world too. Instead of triggering an emotional downpour on social media, you can target your audience and make them yours. It is the way to become the most desirable person to do business with. Speak the language of your customers.

Below, are the 2 steps to becoming the most desirable person to do business with whether you have a big company or are a one person operation:

1. Identify where your customers are

It’s difficult to know who your customers are without knowing where they are. A smart way to learn where the customers are is to conduct a survey of the customers you have already and find out how they learned about your company. The survey will seek to understand their reason for doing business with you and it might not be what you think.

The survey should also seek to understand what all your current customers have in common. It might be another product or service offered by another company complementary to yours. It might be a certain location. It might be a specific industry. The purpose of this is to pinpoint a waterfall of potential clients.

2. Identify what your customers want to hear

You have probably heard of trigger words. Yes, they do exist but they vary depending on the type of clients or customers you serve. You learn the words by listening to them. The purpose is not to manipulate the customers but to create an emotional connection with them when you talk about the solution you offer them. There are clients who walk away from the solution they need just because they did not connect with the one offering the solution. So make sure you are listening to them and figuring out a way to create an emotional connection.

The decision of the client to do business with you is not hinged on how awesome your product or services are, rather it is based on how well you understand their problem. They are going to know how well you understand their problem with how fluent you speak their language. And that is the secret to being the most desirable person to do business with.

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3 Ways You Can Get Back to Basics While Accelerating Your Business Growth

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Young kids are a living, breathing, walking and talking reminder of how important the basics are. They usually underestimate simple everyday tasks and create new chaos in the process. This creates a real time reminder for themselves, and everyone around them, of how important getting back to the basics are. If you have ever watched a baby try to walk or eat, something you do every day, this is very clear.

A growing business is much like a growing child. Rapid growth during the first few years, independence and confidence as the idea grows into a profitable business, and eventually adolescent rebellion once the taste of success comes in. As a business grows, change becomes inevitable, and can very often be unmanageable and overwhelming.

A business can also experience growing pains. From adding staff, to something as simple as time management, the growth of a business can sometimes be more stressful than the death of a business. Success hinges on adaptability, but it is equally important to take time to recognize what got you started when the business was just an idea.

Here are some of the stages your business may be going through, and the way to adapt and grow effectively and efficiently:

1. The terrible twos

As your company grows, the expectations of it and you will change. You are no longer the new kid on the block with limitless potential. Sticking to your core values and adapting to change becomes a full-time balancing act. Very often this early onset of success allows you to hire more people and expand your reach. Especially in companies experiencing hockey stick growth, you may have forgot to create a corporate culture when it was just a few of you in a garage.

Even if you are in an early stage of your company it is important to document the work you are doing and create Standard Operating Procedures (SOPs) and expectations of every task you are completing alone. Once you hire someone, it will be much easier to train them if you can hand them a document telling them this is how you do it.

“Without continual growth and progress, such words as improvement and success have no meaning.” – Benjamin Franklin

2. The tween years

People can get so busy working in their business that they forget to work on it. Be sure to notice the borders of your company and plan how to broaden them. As a company now with profits, employees and resources, you’re keeping busier than ever, but not sure what is next. Much like a child still needs their parents for some of the basics like food and shelter, during this stage of business, coaches and mentors are so important. Be sure to surround yourself with people who are where you want to be and learn from them. This is the make or break point for many businesses so make sure you are working and surrounding yourself with the right people.

3. Entrepreneur adolescents

Many teenagers feel like an adult, because physically and mentally they feel like they are there, but socially and economically they are not even close in most cases. Success can be blinding and create this same false positive for a growing company. Success can create a comfortable bubble that can distract from further growth. The comfort can create slip-ups and mistakes. Be mindful, and don’t let progress slow you down.

During this stage of business, coaches and mentors are still a key factor to success. They may not be the same ones you had in earlier stages, but the great thing about today’s market place is you can find someone out there to get the advice and guidance you may need. In this phase it very well can be a peer or someone on the same level. 

So, what can you do about this day to day? Read below:

1. Back to the Future

Go back to old emails, files, photos, and reminisce. Every venture has a beginning. The photos and emails you have recorded and collected can be just as much an inspiration as your current goals and challenges. Make sure you have the TimeHop app on your phone, this will help jog your memory.

2. Get feedback

Talk to clients and get feedback. We get many chances to talk to new clients, but make sure you go back and question old clients to understand their perspective on your work and business. Ask them about the changes they have noticed and whether the same kind of qualities are still there when they started with you.

“No company can afford not to move forward. It may be at the top of the heap today but at the bottom of the heap tomorrow, if it doesn’t.” – James Cash Penney

3. The Social Network

Networking is key as well, both on and offline. Listen to new people and new customers. You will see plenty of new faces along your journey up, make sure you are receptive and accepting of the new kinds of ideas these people bring along with them. Rigidity can kill a business. Make sure you are networking with the right people online via social media. During all stages of growth, it is so important to be networking in person locally, and make sure you get on a plane and go to an event!

Remember, a business is run by people, and as a CEO and Entrepreneur, you are a person. Make sure you keep growing your business, because if you’re not growing your dying.

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Entrepreneurs

3 Strategies for Entrepreneurs to Stand Out Before, During and After Networking

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Oftentimes, entrepreneurs spend a good amount of time networking to create leads and fill knowledge gaps. Networking events and conventions offer a high level of excitement and engagement, but how do you keep the momentum going and stay in front of potential leads without spamming? How do you actually have people follow up with you directly?

Below, I have listed 3 strategies to help you stand out before, during and after networking:

1. Be consistent with your brand on social media, or don’t be on it.

Most people have an online presence, and you’d be hard pressed to find someone without a social media account. Especially those with a product or service to sell. Even if the pictures posted to your social media account are only pictures of you and your dog, those images communicate a brand, and that’s what followers come to expect when they interact with your page.

If you connect with someone at an event, and they visit your social media profile, is your most recent post reflective of who you are? Is it a pillar in your brand? Another aspect to consider is that everyone has their go-to platform, therefore, it is important to be active on multiple social media platforms. That being said, if you are not active on a particular platform, your business and networking prospects can be harmed.

You may want to consider doing away with the social media platform you’re not active on. If you live on Instagram, don’t be on another social media platform that you are not going to put effort into, or consider outsourcing it. The key here is post networking, you want people to see you regularly, and consistently with the same message.

2. Publishing your own book is the modern-day business card.

With today’s technology, many entrepreneurs debate on the need for a business card, and in a networking event, you can apply a variety of techniques both with and without one. That being said, when someone asks the proverbial networking question “What is it that you do?”, handing them an autographed book that tells your story and about your area of expertise is hard to forget.

It gives credibility in your field and positions you as an authority. It’s easier than ever to self-publish your knowledge, and being a published author opens doors. It allows others to know and learn more about you, not unlike the podcast and your online presence, but it also helps take your personal brand and business to the next level. With a book, you also become an expert in your industry, and it paves the way if you have the desire to speak at conferences and/or events adding another level to your networking.

3. Having a course or mastermind will allow you to stand out from the crowd.

With the first two mentioned above in place, people want to connect with you before, after and during a networking event. So how do we keep teaching and networking with them? The book you authored can be turned into an online course. Each chapter offers the chance to go deeper into the material, and therefore go deeper into the brand and business.

It serves as a companion piece for those who read your book, and with the completion of the course or mastermind group, they have the necessary tools to accomplish the goals outlined in your book. Your mastermind can be delivered in several ways. You can do a weekly call with a group and almost run it like a book club.

The other option is through a Facebook group where you do a weekly live explaining the topics in each chapter, and answer questions in the comments. The final option for the busy entrepreneur is to create a prerecorded webinar or online course that can be accessed 24/7 by current and potential clients.

Networking is the key to success for any entrepreneur, but the money is in the follow up. These three simple things give you credibility, allow you to connect with more leads in one session and create a consistent and clear personal branding message for you online. Remember, your network is your net worth.

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