This document outlines 10 common reasons for failing in new businesses. They include: 1) Funds running out quickly without sales, 2) Lack of trust between partners leading to fights, 3) Hiring a weak team who are not trained well, 4) Wanting too fast growth overnight instead of steady growth, 5) Focusing on small markets close by instead of larger areas, 6) Not getting expected customer appreciation, 7) Hiring too many people without needed skills early on, 8) Bad luck from competitors or technology changes, 9) Inconsistency and not understanding the industry details well, 10) Not taking appropriate risks. Hard work, focus, consistency and willingness to work very hard are needed to achieve success.

1. 10 Reasons of Failing
in New Business…..
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2. If you are passionate,
If you are passionate
then only you should
yy
choose to become
entrepreneur.
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3. You have to learn the industry rules
& have to acquire knowledge to run a
& have to acquire knowledge to run a
particular business.
Without this..chances of success are
negligible.
negligible.
You cannot run businesses by
mere relying upon people.
l i l
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4. There can be 1000
reasons of
reasons of
Failure……
Here are
10
Reasons of
R f
Failing in
Failing in
New
Business….
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5. 1
Normally fund/working capital exhaust quickly.
Usually they get excited quickly;
& they assume that their product will be sold instantly.
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6. 2
Less faith among partners. Instead of believing each
other and divide the responsibilities,
there are fights among each other.
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7. 3
Owners appoint a weak team; and they only want
that their employees should follow them...Rather
than training them to be independent in their jobs.
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8. 4
The owners want very fast...Overnight growth.
The owners want very fast Overnight growth
Actually all successful enterprise grows steadily and
slowly.
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9. 5
These focus upon every small markets/territories of
their convenience.
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10. 6
These generally do not get expected appreciation
from the customers. Most of the times they think
that only walk‐ins are their only target customers.
Further these enterprise think that only way to earn
Further these enterprise think that only way to earn
money is increase in sales.
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11. 7
They prefer to appoint more people with fewer
competencies in starting. This is very dangerous &
can become a reason of failure. Best way is to keep
p
patience till breakevens & till than owners should
work hard at their own and they should appoint less
people with more competencies…..
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12. 8
Sometimes destiny does not support. Many a time’s
y pp y
competitors, new technologies and large
corporations change the horizon of business.
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13. 9
These people do not work hard in right direction and
p p g
are inconsistent. It is very necessary to understand the
minutest detail of the industry/market.
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14. 10
They do not take appropriate risk.
Th d tt k i t ik
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15. I have adapted this presentation from an article published in Economic Times in New
Delhi on 14/08/2009. Having shared all this , I am also reminded the clear cut distinction
drawn by my brother Ravi ji for himself… between achievement and success. He is a
y y j
person who considers achievement as the knowledge that he has acquired or acquiring
through all formal and informal means (he read books all 365 days..) and working hard
(sometimes he sleeps only for 3‐4 hours) and doing everything to his best and putting all
of him in the chosen task He only aim for achievement and normally does not bother
task.
about success. As he takes success as being praised by others which is nice but not as
important or satisfying as achievement is…….
As
A an entrepreneur, you must k
t t know th t t achieve, must fi t get out of th notion of th
that to hi t first t t f the ti f the
ease or rapidity of success in business. Nothing ever just happens in this world.
I am sure you will agree…. that all achievements require burning up of efforts to produce
desired results. Initially you put ten units of effort f one unit of result and then
d d l ll f ff for f l d h
slowly...slowly your momentum will produce ten units of results with each unit of effort.
I hope, you will agree that besides focus and consistency, the only thing that separates
successful people from the ones who aren't…. is the willingness to work very, very hard.
Wish you all the Achievements & Successes !!!
Rajesh Goyal
R j hG l
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grajesh@iacm-india.com, www.iacm-india.com
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