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Top 7 reasons your first startup is doomed to fail
Not everyone wants to think about their startup failing, but it's likely going to happy. I remember reading some statistics not that long ago and it said that 4 out of every 5 startups tend to fail within their first 3 years. That means only 20% of the businesses starting up this year will make enough money to stay open while the other 80% close their doors within the first 3 years. That's pretty crazy, right?
Now don't let this get you down, you need to learn from failures and keep going. If you can fail and get back up, you are going to be successful eventually
Failing is a part of life and I know I've done it plenty of times, but I've also succeeded plenty because I learn from my failures. If you keep doing the same thing over and over again and failing, you're not learning. You're living on hopes and dreams instead of crunching data to figure out what went wrong.
In this discussion I'm going to go over the top 7 reasons your first startup is doomed to fail.
Reason #1: You're likely not an exception
There have been various studies done on why businesses fail and the reasoning is all over the place. It could be from poor management or micro managing everything and not letting employees do their own work. It could be from poor marketing due to inexperience and stubbornness to outsource the work. It could be that your market is extremely flooded and you can't compete with big store prices because you need to squeeze every penny out of your sale in order to profit.
You can't think that you're an exception to the rule of not failing. If you think you are an exception, you already have one foot in the grave.
Reason #2: You don't have enough experience
When it comes to experience, there's no guessing why a professional in the field will make more than someone just starting out. You need to gain experience and over time that will bring in skill sets and knowledge of what to do and what not to do. Think of the SEO market, people get into selling services prior to having a vast amount of experience and they burn out fairly quick. This is due to them not having the knowledge to run the campaigns or the skill sets to do anything else. They begin to get charge backs and eventually go under.
Reason #3: You're not a risk taker
Experienced business owners know that you need to take some calculated risks in order to stay ahead of your competition and bring in the sales. A new business owner probably won't invest in certain aspects of their business and take risks because they simply don't understand the importance of branching outside of their comfort zone.
New business owners have much more riding on their first business succeeding than an experienced business owner who has already branched out into multiple income streams. An experienced business person will usually take some risks in the beginning and figure out what works and what doesn't. After they streamline everything, they will then increase the profits as much as possible while also working on other income streams coming into the business, unlike most first time business owners.
Reason #4: You don't have a large network
A professional network is key when it comes to becoming successful with your own business. When you're starting out, you likely don't have anyone in your network that can be a key player in your road to success. Over the years I've built up my professional network and I can ask anyone for help if I ever need something done, and they will be there. I do the same for them and this is our relationship
Your competitors have been building their network for years, and you're just starting out which will be difficult for you.
Reason #5: You're untested
When it comes to being tested, you need to understand this isn't a written exam. Your instincts will be tested over time and you will gain knowledge and a feel of what to do and what not to do.
Do you think a grand master chess player thinks as much as you do when playing chess? Nope! They can feel what's right and what's wrong before they start looking into what piece to move and why. This instinct only comes with years of practice and also plenty of trial and error.
This also means that seasoned business veterans can likely feel which way a business needs to be pushed in order to have the highest potential of success.
Reason #6: YOU OWN A BUSINESS! YAY!
When it comes to running a business for the first time, most owners are overly excited and that's never really a good thing. Being happy about opening up your own business is great, but if you're overly excited about it, you'll likely miss a few game changing things that could benefit you in the long run. This will inevitably hurt you and possibly make it so that you have to close your doors.
You'll need to get focused and work on one thing at a time. Try not to get pulled into too many different directions and understand that you can have other people help you out, you don't have to do everything yourself.
You also never want to expand too early. Work until you get burnt out due to having to be at your store or managing your online sales for 12 hours a day, then bring someone on board of hire a VA (virtual assistant). Bringing a team on board too early will only halt your success early on and make it so that you are at a higher risk of failing.
Reason $7: You don't have authority yet
Most people won't take you too seriously when you launch a new business for your first time. This is because you're still green and don't know exactly what is going on just yet. I've heard plenty of stories of people starting up a business and they were going to rely on investors to help fund everything, but then the investors shunned them and they were left with a failing business. Investors won't take you serious if it's your first business unless you've been alive for a few years and showing profits.
Remember that every failure has a silver lining, and that's experience. You need to pick yourself up whenever you fail and get back to work. No one is ever successful the first time, not even Mark Zuckerberg lol. How many websites do you think he tanked prior to launching Facebook? Probably hundreds lmao
A lot of entrepreneurs will start up multiple businesses, which means that they are going to fail at least once. They will learn from the failures which means their second, third, fourth, and fifth business venture will likely be more successful from the experienced they've obtained along the way.
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