9 major causes of entrepreneur failure

 

In the vast sea of commerce, many entrepreneurial enterprises often fall into the dark like a meteor after a short period of glory. We can use and modify the famous saying "most successful companies are similar, while failed companies have their own unique characteristics ." Why? There are only a few ways to succeed. There are endless ways to fail.

Wrong partner

If you need money from a partner to start or maintain the company, or the partner helps you design the idea of the company, or he has the skills you need, ask him to join. Do not use a partnership to hire a person, or you need him to play a drum for you. For the choice of investment partners, it is best to find out the source of investment, it is best to own funds, to avoid the loss of the "chain debt" cycle due to poor management. To choose a business partner, you must find a real expert to bring about certain technical and business channels. It is best to fix the issue of distribution and loss sharing after making profits for an enterprise in the form of a contract. Once a dispute arises, it is easy to handle it by legal means.

Low standard employment

People often have the idea that they should first rush to hire outstanding talents in the future. This is a big mistake. Incorrect results often take a long time to appear. To hire someone, you must maintain high standards and be patient until you find the right person to help you start your business. Then, you can do your best to let them do it. In this way, you will get twice the result with half the effort.

Flashy

Which line has the rule, and which line has the benefit. A high cost may not be a small business, and a low cost may not be a big business. Large investment, high profits, but high risks, low investment filial piety, earning a stable money. Therefore, investment entrepreneurs should not be jealous.

Fraudulent customer

It is the foundation of business. Do not think that "if there are too many Chinese people, one person will make enough money after one slaughter ". This not only ruined our reputation, but also buried many business crises. We dare not say that there is no fraud in the mall, but the more serious the business is, the longer the intention or the greater the intention, the more the scam style is useless, our goal is to achieve ourselves and be a "respectable entrepreneur ". We have no reason to lower our standards of human beings to align ourselves with unscrupulous businessmen.

Disorganized management

Without rules, you cannot build a square. No matter how small your company is, there must be clear rules to follow. Even if you are a private enterprise, you cannot take the company as a home owner, necessary financial, personnel, wages, dividends, and division of labor systems must be established, and they must take the lead in implementation. In this way, the boss can establish a prestige, and the business will improve, and management will also benefit.

Focusing on "righteousness" and "profit"

During the investigation and analysis of entrepreneurial enterprises, we found that more than 70% of entrepreneurs emphasize the loyalty of entrepreneurial employees, rather than the interests of employees. Once an employee asks for the benefit, the entrepreneur is deemed to be unfaithful, thus affecting effective communication and even cooperation with each other. This phenomenon is especially common in small enterprises. Interest is the fundamental material basis for the survival and growth of any employee. If entrepreneurs ignore this problem, they will not only fail to attract excellent talents, but their existing talents will also be lost.

Light Talent Training

As enterprises focus on business growth during the start-up period, many enterprises can only use talents, but ignore the training of talents. In today's ever-changing knowledge and technology, this human resources environment has made many entrepreneurial employees often feel empty-minded and insufficient. This will inevitably lead to many entrepreneurial enterprises in the rapid growth period, the quality of old employees is difficult to cope with the new growth and development of enterprises, enterprises have to introduce high salaries of talent.

Inch by inch

It is not a fault that enterprises must make money. However, if you make money for your sole purpose, it will lead to many problems: focusing only on immediate interests, ignoring long-term investment, failing to improve the morale of ordinary employees, and lack of long-term plans. As mentioned in the fable, when capturing a butterfly, the more chaotic you are, the more you cannot catch it. On the contrary, when you sit there quietly, the butterfly will fly onto your shoulder. Of course, it is impossible to sit quietly in the business field. However, chasing too much money will make you lose the candle.

Be cautious

Many new entrepreneurs tend to be cautious and do not dare to fight big battles. But this is wrong, because the failure of the small battle may not be the same as that of the large Battle School. Why don't you let it go and lose yourself? If you win, it will be the Grand Slam. Here, the only thing to measure is whether the risk is the same as the expected return. Do not take the risk for something that is not worthwhile. However, if it is worth it, it will not be crucial.

Underestimating competitors

Suspicious people sound like bad things, but in business competition, it is essential for all successful people. Bill? Gates and Andy? Graf is the two most successful entrepreneurs and the two most suspicious people. No matter how successful their company is, how much market share they have, and how many times they have covered the magazine, they are always considering the next competition. They manage the company as if someone will crush them tomorrow. They are always very alert. This is not redundant. Do you still remember the days when IBM monopolized personal computers and text star WordStar monopolized Text Processing Software? At that time, how absolutely did they lead the giants? However, they lost to competitors who were much smaller, more enterprising, and more flexible than them in the twinkling of an eye. Remember, the market you own will be desired by others and may be snatched from you. Never underestimate your competitors.