Startup Business Failures: Major Causes and Specific Pitfalls

Startup Business Failures: Major Causes and Specific Pitfalls

The time is now! Don’t become a statistic in the startup business failures.

There are articles and checklists abound with advice on what it takes to be an entrepreneur or small business owner, but few cover the skills needed to run a business.

For example, the Small Business Administration has a page that asks, Is Entrepreneurship For You and asks you if you have the following characteristics and skills frequently associated with successful entrepreneurs:

  • Comfortable with taking risks
  • Independent
  • Persuasive
  • Able to negotiate
  • Creative
  • Supported by others

If you did well—meaning you answered yes to these question, it then asks you to proceed to a 20 question checklist. (Access, read and download list)

While all the questions on the list are valid and deserve your attention, the list is incomplete.

Startup Business Failures

According to research conducted by the Statistic Brain Research Institute, the major cause of (startup) business failures can be traced back to the owner’s incompetence (a whooping 46%) (ok, so I actually used the word. Please forgive me.)

This isn’t new news.

I saw the same things (see list below) happening while teaching small business startup courses for a community initiative in Dallas during the late ’90s.

Moreover, it almost breaks my heart when I meet with someone who is up to their ears in trouble because they thought…and they tried to fix…and they hoped…

Earlier I mentioned that the SBA list is incomplete.

Now, that you had a chance to go over the SBA list, as well as the list of major causes and specific pitfalls, I want to introduce you to a few additional questions you should ask yourself.

Here it goes.

Do you have the necessary knowledge and skill to

  1. assess your suppliers ( 9. what suppliers do I need?)
  2. implement your pricing strategies ( 15. how will I price my product compared to my competition?)
  3. finance your business ( 10. How much money do I need to get started?)
  4. keep accurate records and books i.e., bookkeeping skills.
  5. set goal; to gather, organize, and analyze date etc.— the planning skills.

This is just a short list.

There are many more things someone new to starting a business needs to know.

But, I don’t want to overwhelm you.

If you are up to the realities of startup business failures, you might be interested in my article the Top 12 Management Mistakes of Entrepreneurs..

 

Startup Activity: Rate of New New Entrepreneurs

Startup Activity: Rate of New New Entrepreneurs

Startup Activity by Age 1996

Startup  Activity 1996 by age in the US

Number (N) out of 100.000 adults became entrepreneurs in a given month

20-34 — 284(N)

35-44 — 311(N)

45-54 — 365(N)

55-64 — 341(N)

 

Startup Activity by Age 2016

Startup  Activity 2016 by age in the US

Number (N) out of 100.000 adults became entrepreneurs in a given month

20-34 — 216(N)

35-44 — 351(N)

45-54 — 361(N)

55-64 — 352(N)

 

The Star Wars Startup Guide: May The Force Of The Team Be With You. (infographic)

The Star Wars Startup Guide: May The Force Of The Team Be With You. (infographic)

I know you’re wondering “What can I learn in the Star Wars Startup Guide?”

Well, while the epic movie isn’t about startups, there are several epic heroes you can learn a lot from.

More specifically, the heroes you need to join your team.

No, you are not assembling an intergalactic team to man a spaceship etc.. However, you ultimately will assemble a team to help you take your startup to the next level—even if it is only freelancers to help you with some tasks.

But, how do you identify and select the right people—both, freelancers and employees— for the right job? (selecting the wrong people can cost you a whole lot mere than you can imagine.)

Yes, you can hire me to develop a very specific job description for each job, conduct the interview, and even administer the Myers- Briggs Type Indicator (MBTI®) to each prospective applicants. Or, you can learn how to identify and hire “Top Talent” to awaken the Force within and conquer the Dark Side— inside and outside your new organization.

What Hero are you?

You as the founder/CEO needs to have a vision, courage, creativity…

You also need to develop great relationships with your team…through listening and maintaining trust…

In essence, you are the Luke Skywalker of your team.

Read on and discover the traits of Princess Leia, Han Solo, Chewbacca…

Click to Enlarge Image

Star Wars for Startups: A Guide to Building Your Team - Brought to you by Desk.com

Star Wars Startup Guide Summary

If you enjoyed this Star Wars Startup Guide as much as I did when I came across it, why not share it with friends, family and even your associates.

Also, if you want to discover your unique personality traits—your strength and weaknesses, schedule a 15-minute exploratory session about how taking the MBTI® can help you in your business.

Lastly, I would love to find out what you are struggling with the most. Leave me a comment, and I see how I can help.

I do not represent, endorse or sell Salesforce products i.e., direct or through an affiliate partnership. I included the above infographic solely for entertainment and your enjoyment. For more information about personality assessment contact us.

Myers-Briggs Type Indicator, Myers-Briggs, MBTI and MBTI Logo are trademarks or registered trademarks of the MBTI® Trust, Inc., in the United States and other countries.

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