12 Strong Reasons Why Small Businesses Fail

Why do small businesses fail? And what can you do to avoid failing in business? I advice you read on to find out. It is no longer news that 99% of all new business ventures fail in the first ten years. Now since the dream of every entrepreneur is to build a successful business, I have tactfully highlighted 12 major reasons why small businesses fail and how you can bulletproof your business against them. If you are ready to learn, then read on.

“There are no disasters in business that you can’t avoid if you see them coming and make the adjustments.” – Boune T. Pickens. Jr.

12 Strong Reasons Why Small Businesses Fail

1. Lack of Managerial Skill

When a small business owner lacks the managerial skill required to drive the business to greater heights, that business is bound to fail. Building a business without the necessary managerial skill in place is a futile adventure. An entrepreneur that wants to succeed must be able to effectively handle the employees, cash flow, production line and so on; or better still; the business owner must be able to hire a good manager to run the business.

2. Wrong Business Decisions

This is common to every human being irrespective of your field. Sometime ago a friend of mine, after carrying out critical analysis on a particular situation came up with a decision he considered favorable. But on implementing that decision, it back fired and at the end of the day, my friend had several lawsuits dangling on his neck.

So whenever you have decided on an action to be implemented on your business, consider asking friends, business partners and professionals for advice. It is going to save you the stress of cleaning up the mess resulting from wrong business decision taken.

“Before making an important decision, get as much as you can of the best information available and review it carefully, analyze it and draw up worst case scenarios. Add up the plus or minus factors, discuss it with your team and do what your guts tell you to do.” – The Mafia Manager

3. Harsh Government Fiscal, Economic and Monetary Policy

This is an open killer of both big and small businesses. As an entrepreneur, you must be on guard to bulletproof your business against the ever changing government fiscal and monetary policies. Since you cannot influence or alter the government’s decisions, you must be ever prepared to swiftly adjust your business to prevent it from being hit by the adverse effect of unfavorable government policies. Instances of such government policies you must be on guard against are business taxes, double taxation, duties and levies, inflation, exchange rates and so on.

“How fast a company can respond in an emergency is a measure of its corporate reflexes.” – Bill Gates

4. Inability to Move Swiftly With Trend and Changing Technology

It is obvious that some people hate change, some resist change while others embrace change. Change is constant, so it is either you align your business with the trend and ride to the top or you remain stagnant and eventually fold up. You also need to constantly upgrade your technological strengths as swiftly as possible.

“Your greatest and most powerful business survival strategy is going to be the speed at which you handle the speed of change. That speed of change is trend.” – Ajaero Tony Martins

As an entrepreneur, you must be on your toes sniffing the air for available trends and new technologies you can take advantage of. Examples of great industrial trends and technologies are computers, e-shops on the internet, automated accounting, e-payment and so on. Remember, trend is your friend, not your enemy.

5 Weak Management

This is the fundamental reason why small businesses fail to survive. A standing rule in the business world is this:

“The success or failure rate of any business is directly proportional to the strength and level of professionalism of the management.”

From the first day of business, a very strong management is needed to ensure the survival of your business. You might say employing professionals such as attorneys and accountant is very expensive but they will do your business good in the long run.

Better still, you can consider bringing in these professionals as partners. By applying this method, you will not pay them salaries while employing their services but they will share in the profit of the business. It is a win-win situation. No matter what tactic you wish to apply, ensure you have a strong management strategy.

“My most important word in business is ‘Strategy’ and the reason is this: The speed at which your business grows is directly proportional to the overall strategy deployed on that business and the team behind the creation of that strategy.” – Ajaero Tony Martins

6. Fierce Competition

Most small business owners are afraid of competition because many profitable ventures have been forced to shut down due to fierce competition. I want to let you know that even if you are the inventor of an idea, that will not stop competitors from coming in.

“In business, the competition will bite you if you keep running. If you stand still, they will swallow you.” – Victor Kiam

So your best bet is to keep an eye on your competitors, utilize every available innovative idea and make your customers happy. You can also implement some of the best protective firewalls to keeping your competitors at bay. These firewalls are: Trademarks, Patents and Copyrights.

12 Strong Reasons Why Small Businesses Fail

7. Wrong Business Location

The location of a business is such an important factor that can never be over emphasized. If your business is located in an interior area than your competitor’s, you are bound to fail. Factors to consider when choosing a business location are road network, nearness to high traffic zone, accessibility and patronage level of customers, population, demographics and so on. For example, imagine a business that sells motivational books located in brothel. What do you expect? Nothing but outright failure.

8. Lack of Knowledge and Experience in the Chosen Field

I don’t need to write much on this, it is self explanatory. You can’t succeed in a field where you have no knowledge and experience about. No more, no less.

“Risk comes from not knowing what you are doing.” – Warren Buffett

9. Bad Debt

This is another reason why small businesses fail. When a business is owed much as a result of free credit line to customers. That business is bound to fail. One key role of an entrepreneur is to keep an eagle eye on the cash flow. Since a business must never be short of cash and customers too must be kept loyal, the business owner must establish a certain credit limit and a fixed time from date of purchase to pay up.

“There is one paradoxical characteristic every entrepreneur must possess to succeed. An entrepreneur must be able to persuade his debtors to pay their debts promptly and at the same, must tactically delay payments to his creditors.” – Ajaero Tony Martins

10. Insufficient Capital

Raising capital is the primary duty of an entrepreneur because cash flow is the life blood of business. Insufficient capital can kill even the most profitable business. In a case where there is insufficient capital and the business is finding it difficult to access funds from bank and investors; the entrepreneur must resolve to bootstrap financing, which is working with the limited cash, eliminating unnecessary expenses, establishing a credit line from suppliers and producing only on demand to avoid tying up resources.

“Business. It’s quite simple; it’s other people’s money.” – Alexander Dumas the Younger

11. Internal Fraudulent Activities

Bad employees can be a chief cause of failure of any business. When you have illegal business transactions and cash siphoning being carried out by employees at the expense of the business, that business is bound to face liquidation. So an entrepreneur must keep a keen eye on the activities of employees with respect to the business.

“There will be times when you will have to be abrasive, even brutal to members of your staff. Don’t worry that your people will say bad things about you because of this. They already have. But in general, try to be pleasant and accommodating. Try to please the greatest number who work for you that you can; antagonize the fewest. Blow smoke.” – The Mafia Manager

12. Lack of Entrepreneurial Skill

I will prefer to call this the ultimate reason why small businesses fail. When an entrepreneur lacks the necessary skills such as leadership skill, cash flow management, sales, persistence and self belief and so on; such an entrepreneur is bound to fail. An entrepreneur is the head and pilot of the business. Consider an airplane being flown by an inexperienced young pilot? The outcome can be better imagined.

In conclusion, these are the 12 chief reasons why small businesses fail. Having noted each one of them, you can strive to avoid them; while growing your business.

10 Business Challenges of Starting a Small Business from Scratch

What are the major business challenges entrepreneurs face when starting a small business from scratch? How do successful entrepreneurs and drop out billionaires handle and solve problems in business? Must an entrepreneur face these business challenges when starting a business?

“Starting a business is like jumping out of an airplane without a parachute. In mid air, the entrepreneur begins building a parachute and hopes it opens before hitting the ground.” – Rich Dad

If any of the above questions is currently running through your entrepreneurial mind, then I will advice you read on as I trash out the top 10 business challenges you will face when starting a business from scratch.

“Without the element of uncertainty, the bringing off of even, the greatest business triumph would be dull, routine and eminently unsatisfying.” – J. Paul Getty

If you are an entrepreneur, then I believe you will be familiar with the challenges associated with the entrepreneurial process of building a business from scratch. But if not, and you dream of becoming one someday; then I think you will find this article worthwhile.

“A business has to be involving, it has to be fun and it has to exercise your creative instincts.” – Richard Branson

I am writing this piece to enable aspiring entrepreneurs prepare in advance for challenges involved with the entrepreneurial process. Please it’s never my intention to discourage or scare you from going into business; In fact, I intend to achieve the opposite. I want you to venture into the business world and start your own business with a feeling of confidence.

“He that is prepared has half won the battle.” – Chinese Proverb
“The biggest challenge you have is to challenge your own self doubt and your laziness. It is your self doubt and your laziness that defines and limit who you are.” – Rich Dad

10 Business Challenges of Starting a Small Business from Scratch

1. Developing the Vision and Business Idea

“To have a great idea, have a lot of them.” – Thomas Edison

Developing a business idea is usually the first challenge faced by every entrepreneur when starting a business from scratch. Finding the right business opportunity or creatively developing an idea is certainly not an easy task. I call “Envisioning the idea” the first true task of an entrepreneur. As an entrepreneur, you must possess the ability to see what others cannot see. While others see problems, you must see opportunities.

“There is far more opportunity than there is ability.” – Thomas Edison

But seeing opportunities is just the beginning. The main business challenge is going to be your ability to forge that opportunity into a business idea. I see this as a business challenge because the process of transforming problems into business opportunities is like trying to turn lead into gold. I call it the entrepreneurial process of “Creating Value out of nothing”; a process that brings innovative products into existence. Below is an illustration of how the process goes.

Identifying a problem > seeing an opportunity in the problem > Coming up with a solution > Forging the opportunity into a business idea > Integrating your solution into a business plan

“A good businessman must have nose for business the same way a journalist has nose for news. Once your eyes, ears, nose, heart and brain are trained on business, you sniff business opportunities everywhere. In places where people see a lot of obstacles, I see a lot of opportunities. At times, there is something instinctive in me that tell me a business opportunity exist even at a place where others see nothing. That is what makes me different, maybe unique. A good businessman sees where others don’t see. What I see, you may not see. You cannot see because that is the secret of the business… the entire world is a big market waiting for anybody who knows the rules of the game.” – Orji Uzor Kalu

Developing a vision is definitely a business challenge because an entrepreneur must sometimes assume the role of a sorcerer. Let me explain in detail. Most individuals are comfortable with the present way of doing things but it is the duty of an entrepreneur to envision and forecast the future.

An entrepreneur must always be ahead of his time or else he will lose his relevance. It is the duty of an entrepreneur to bring into present what is yet to be. It is also the duty of an entrepreneur to bring solutions to other people’s problems. Let me give you some practical illustrations:

“If you want to be rich, you need to develop your vision. You must be standing on the edge of time gazing into the future.” – Rich Dad

a) In the late 70s and early 80s, while IBM saw increase in demand for their mainframe computers, Steve Jobs envisioned a personal computer in every home and Bill Gates envisioned the need for easy to use software for personal computers. That single vision made Bill Gates the richest man in the world and Steve Jobs the most famous business person of the 21^st century.

“Business is going to change in the next ten years than it has in the last fifty years.” – Bill Gates

b) The Wright brothers envisioned a flying machine but they were massively opposed because the thought of humans flying was perceived as impossible. Today, the Airplane is a reality.

c) Back in those days when cars were custom made and exclusively for the rich, Henry Ford envisioned affordable cars for the masses. That single vision made Henry Ford one of the richest men in history.

“You are nuts and you should be proud of it. Stick with what you believe in.” – Trip Hawkins

I believe with these few examples, my point is clear. Developing the vision and idea is the first true task and challenge of being an entrepreneur.

2. Raising Capital for your Startup

After developing your idea, the next challenge you are going to face when starting a business from scratch is that of raising capital. As an entrepreneur, you are the only one that knows business your idea to the core. You are the only one that knows the story of your future.

“Capital can do nothing without brains to direct it.” – J. Ogden Armour

Trying to convince investors about something that doesn’t exist is definitely a challenge. Trying to make them understand that you are trustworthy and equal to the task is not child’s play especially when you are building your first business.

“If you want to know the value of money, go and try to borrow some.” – Benjamin Franklin

There is more to raising capital than just simply asking for money. Most investors want to invest in already established businesses with minimal risk and they want to be sure that they get returns for the risk they took. Most brilliant business ideas never scale through the venture capital stage because the entrepreneur is either not prepared or lacks what it takes to raise the needed capital. Just as my mentor, Robert Kiyosaki says:

“The world is filled with brilliant ideas and excellent products but the world lacks seasoned entrepreneurs.” – Robert Kiyosaki

To overcome the challenge of raising capital, you must develop the ability to sell your idea and vision to potential investors. When I say “sell your ideas“, I mean improving your communication skill and your manner of presentation. In the game of raising capital, you must have a good story to tell; backed by a strong business plan and good persuasion skills. You must know how to pitch angel investors and venture capitalists alike.

“The ability to sell is the number one skill in business. If you cannot sell, don’t bother thinking about becoming a business owner.” – Rich Dad

3. Assembling a Business Team

“Eagles don’t flock, you have to find them one at a time.” – Henry Ross Perot

The third business challenge you will face in the course of starting a small business from scratch is assembling the right business management team. When I talk about a team, I am not talking about regular employees. I am talking about a “strategic round table business team” that will meet regularly to brainstorm on ways to grow your business.

“Individuals don’t win in business, teams do.” – Sam Walton

The process of building a business team starts even before the issue of raising initial start-up capital arises. Remember I said that most brilliant ideas never scale through the phase of raising venture capital. Well; this is where most budding entrepreneurs miss it. Most brilliant ideas and products never get funded because the entrepreneur is trying to raise capital as an individual. A business team is a vital, yet often ignored key to raising venture capital successfully.

“Business and investing are team sports.” – Rich Dad

As an entrepreneur, you are bound to have strengths and weaknesses. That is the more reason you need a business team to cover up or compliment your weaknesses. A team is a necessity for building a successful business. Now finding a business team is just the second hurdle, transferring your passion and vision to your team is the next piece of cake.

“Teams should be able to act with the same unity of purpose and focus as a well motivated individual.” – Bill Gates

It’s your duty as an entrepreneur to make sure your team sees the future you see. They must believe in your possibilities and must also be passionate about making that possibility a reality. If they can’t grasp your vision, if they can’t see the future with you, then they are not worthy being your team.

“My model for business is the Beatles. They were four guys that kept each other’s negative tendencies in check; they balanced each other. And the total was greater than the sum of the parts. Great things in business are not done by one person; they are done by a team of people.” – Steve Jobs

Your strategic business team should comprise your banker, financial adviser, accountant, attorney or legal adviser and any other specialist that will be of tremendous impact to your business. A question on your mind right now might be “how am I going to pay this team” My answer is I don’t know. You will have to figure it out yourself or better still, you can consider bringing them on board as partners.

“Go to the wolf, consider its ways and be wise. A wolf will never hunt alone; it hunts in packs because it knows the power of team work.” – Ajaero Tony Martins

4. Finding the Right Business Location

Is finding a good location a business challenge? I don’t know but what I do know is that finding a good business location at the right price is definitely not easy. How do you get a location that has a rapidly growing population, good road network and other amenities at a good price? Well, you will have to figure out yourself.

5. Finding Good Employees

“If you own a butcher shop, don’t hire vegetarians. To hire the right people, you have to let the wrong people go.” – Rich Dad

Most writers and managers crank up the process of finding good employees as an easy task. They define the process of finding an employee as simply presenting the job description and the right employee will surface. But I think it’s more than that.

“The competition to hire the best will increase in the years ahead. Companies that give extra flexibility to their employees will have the edge in this area.” – Bill Gates

Business owners know how difficult it is to find a hardworking, trustworthy employee. Most employees want to work less and get paid more. Finding a good employee who will be passionate about delivering his or her services is quite difficult. Finding good employees is a minor task compared to the business challenge of forging your hired employees into a team. You may have great employees but if they can’t act as a team, they are worthless and will yield nothing but stagnation. A football team may have great skillful players but if they fail to play as a team, their possessed skill is useless.

“Bringing together the right information with the right people will dramatically improve a company’s ability to develop and act on strategic business opportunities.” – Bill Gates

Employees are your representatives to your customers and the outside world. They are a reflection of your business culture and ethics. If an employee of yours is bad or rude to your customers, it is going to portray a bad image for your company. So you must be careful when hiring employees. Remember the golden rule of business; “Hire slow and fire fast.”

10 Business Challenges of Starting a Small Business from Scratch

6. Finding Good Customers

The sixth challenge you will face in the process of starting a small business from scratch is finding good customers. Note the keyword “good customers.” In the process of building a business, you will come to find out that there are good customers as well as bad customers. You must be on guard for bad customers. Good customers are really hard to find. A good customer will be loyal to your company and will be willing to forgive you if you make a mistake and apologize. A good customer will try to do the right thing that will benefit both himself and your company mutually.

“Thank God for my customers. They buy my products before they are perfected.” – Henry Ford

Bad customers will always look for loopholes in the company’s policy to exploit and make a few gains. Bad customers will always try to exploit the company’s goodwill and look for ways to rip off the company. Bad customers are responsible for bad debts.

Good customers build your business and bad customers will always try to liquidate your business. Just as you fire employees, you must also be prepared to fire bad customers without hesitation. Remember the story of the customer that sued McDonald’s claiming the coffee was too hot.

“You must fire bad customers just as you would fire a bad employee. If you do not get rid of your bad employees, the good employees will leave. If I do not fire bad customers, not only will my good customers leave but many of my good employees will leave as well.” – Rich Dad

7. Dealing with Competition

“In business, the competition will bite you if you keep running. If you stand still, they will swallow you.” – Victor Kiam

Competition is the next challenge you will face when starting a business. Most individuals see competition as a plague but I see competition as a good challenge. I see competition as a benchmark for creativity, the main engine that stimulates innovation and production of quality products at great prices. Without competition, there will be no innovation and without innovation, the world will be stagnant.

“If you don’t have a competitive advantage, don’t compete.” – Jack Welch

I see competition as a welcomed challenge and I want you to do the same. Competition keeps us on our toes and drives us to constantly improve our products and services. But you must be warned. Competition can make your business lose its relevance in the eye of your customers so you must always be on guard.

“The competitor to be feared is one who never bothers about you at all but goes on making his own business better all the time.” – Henry Ford

8. Unforeseen Business Challenges and Expenses

“Smooth seas seldom make good sailors.” – Anonymous

Just as a sailor prepares for unexpected storm, just as a pilot is always on the watch for unpredictable bad weather and thunderstorms, so must an entrepreneur prepared for whatever comes. Unexpected challenges can come in the form of:

Unexpected law suits
Inconsistent government policy
Not being able to make payroll
Unpaid bills and taxes
Unexpected resignation of staff from sensitive office
Bad debts from customers
Loss of market share
Dwindling working capital
Inadequate stock or inventory

“A company’s ability to respond to an unplanned event, good or bad is a prime indicator of its ability to compete.” – Bill Gates

These business challenges, if not handled properly can ruin your plan to build a successful business. Another challenge you must expect is an unforeseen increase in business expenses. If not handled properly, it might result in constant negative cash flow and eventually; business failure.

9. Keeping Up With Industrial Changes and Trends

“In three years, every product my company makes will be obsolete. The only question is whether we will make them obsolete or somebody else will.” – Bill Gates

Change in trends is a challenge you must be prepared for when starting a small business. Trends have made and broken lot of businesses. I know a lot of profitable businesses that have been wiped out by slight industrial changes and trends. A typical example is the Dot com trend, where many established industrial based businesses were wiped out by new web based dot com companies.

“How fast a company can respond in an emergency is a measure of its corporate reflexes.” – Bill Gates

When the Dot com era began, business owners were left with only two options. Either they join the dot com train or they get crushed by the dot com train. Seasoned entrepreneurs know that trend is a friend and are always willing to swiftly adjust their business to the current trend. Keeping your eyes open to spot trends is really a challenge but the big task will be your ability to quickly use the trend to your advantage.

10. Exiting the Business

“In the world of business and investing, your exit is more important than your entry. A good thumb of rule is this; exit before you enter.” – Robert Kiyosaki

When building a business from scratch, you are going to face the challenge of determining your exit strategy. Just as the quote above states, you have to plan your exit strategy before you even start the business. Most entrepreneurs run their business without any plans to exit and even if they have an exit strategy, they find it difficult to implement it.

“Always start at the end before you begin. Professional investors always have an exit strategy before they invest. Knowing your exit strategy is an important investment fundamental.” – Rich Dad

Before starting a business, it is advisable to plan an exit. Lack of an exit plan is the primary reason why most businesses crumble after the death of the founder. An exit strategy is very important to the long term survival of a business. now how do you plan an exit strategy? There are benchmarks you can use to determine your exit from any business. Most smart entrepreneurs will use a certain benchmark as a target and once this specific target is reached, they exit the business. Examples of such benchmarks are:

Annual sales
Annual Turnover
Asset Base
Market Saturation
Customer base, subscribers or number of users

Now when it comes to exiting a business, there are three strategies you can apply. You can choose to exit a business in any of the following ways:

a) Turning over the business to professional managers

When your business reaches a certain stage of maturity, you can exit by turning it over to professional managers. In this case, the business still belongs to you but you are not involved with its day to day affairs. You will have to give up administrative role to assume the role of a watchdog. When you exit in this manner, you will have more free time to look at other projects or retire.

b) Selling the business privately

In this case, you are exiting the business by selling it to a private investor. In the business world, it is called M&A (Mergers and Acquisitions). Exiting your business this way means that after the sale and transfer of assets is complete, you have nothing to do with the business again.

c) Taking the company public

The unique thing about this type of exit strategy is that while you are selling your business (in form of shares) to public investors, you still maintain control over the business. Please before you apply any of these exit strategy, I will advise you consult with your attorney or legal adviser. But ultimately, it’s up to you to decide the exit strategy you want to apply; but always remember “your exit is more important than your entry.”

As a final note, I want to state clearly that challenges come only to make you stronger; so don’t faint in the face of challenges. Stand tall; keep moving your business forward and I will see you at the top.

How to Handle Business Failure and still Succeed

Have you experienced a business failure in the past? Are you currently experiencing business challenges? Are you on the verge of business failure? Are you afraid of starting a business because of the fear of failure? Do you fear failure? Do you see failure a sign of defeat? If your answer to any of these questions is yes; then please read on because I am about revealing the secret to handling business failures and making a success out of it.

"The business empires built by successful entrepreneurs were erected on the foundation of past failures." – Ajaero Tony Martins

I once wrote an article “50 Failure Quotes from 50 Successful People” and I backed it up by sharing with you stories of successful entrepreneurs that failed before hitting success. I have also shared my personal experience about how I failed and went to become successful. You can read about it below.

How to Start a Business from Scratch: My Entrepreneurial Journey so far

Please before I go on, I want to state categorically that I will not in anyway be highlighting the causes of business failures or how to avoid them. I have dealt with such topics extensively in the past. You can check them out below.

10 Causes of Business Failure You Must Watch Out For

12 Strong Reasons Why Small Businesses Fail

Recession Strategies: How your Small Business can Survive a Recession

15 Common Business Mistakes You Must Avoid When Building a Business from Scratch

10 Reasons Why You Will Never Build a Successful Business

In this article, I will strictly be sharing with you practical tips for bouncing back to success from failure. I will be telling how to handle business failures and make a success out of it. I have failed countless times and the steps explained below are exactly how I handle my failures. Though this article is strictly written for entrepreneurs and business owners; anybody can make use of its lessons. If you are prepared to learn, please read on.

Now how do you handle business failure? How do you recover from a business failure? Well, you are going to find out below.

How to Handle Business Failure and still Succeed

1. Be prepared to fail

In the article “How to Start a Business from Scratch: My Entrepreneurial Journey so far,” I shared four hard core business lessons I have learn; mind you that these business lessons were self learned (lessons from personal experience). My lesson one in that article was:

“The fastest way to build a successful business from scratch is to fail fast.” – Ajaero Tony Martins

And this lesson is the truth in its entire. The first and the best way to handle business failure is to prepare for it in advance. I know this sounds crazy but it’s probably the best strategy for handling business failure. Nobody wants to fail and that’s why majority end up becoming failures.

Everyday I come across budding entrepreneurs who are excited about their new fool proof business ideas. But what these entrepreneurs fail to understand is that business is a game of probability; where you have a 50 – 50 chance of either failing or succeeding.

And with business failure come emotional pain on the part of the entrepreneur. I have seen and heard of entrepreneurs committing suicide just because their business crumbled. When my mom lost her lucrative business to fire, I knew the amount of courage it took her to bear the loss and start all over again. At the site of the incident, a business man who couldn’t stand the sight of watching his sweat go up in flames attempted to jump into the fire. If not for the intervention of on-lookers, that man would have been history.

That’s exactly why you need to be prepared in advance for the D-day. Nobody prays for failure but if it comes; you just have to face it. That’s what makes you an experienced entrepreneur. Now how do you prepare in advance for business failure?

You prepare in advance to handle business failure by changing your perception towards failure. Just as my mentor “Robert Kiyosaki” says “No one is doomed to bad luck.” Sometimes, unplanned shit happens but I will rather prepare myself for it ahead of time than to carry the illusion that things will never go wrong.

“Things never go smoothly.” – Jeff Bezos

You can also prepare for business failure by giving your business your best shot, while expecting the worst. Expecting the worst may lead you to setting up a landing haven; which in this case will be a contingency plan. A pilot learning how to fly an airplane will never be allowed to practice without a parachute; so must you also never start a business without an escape plan.

A contingency plan is the reason why successful entrepreneurs start new businesses despite their failures; it’s the reason why I am still in the game of entrepreneurship. I have had successes and failures in business but that doesn’t still erase the odds. I might be back to square one tomorrow; but I am not afraid to lose it all because I have prepared my mindset to handle even the worst situation.

2. Don’t take failure personal

The message above is straight and precise. If you’ve been hit by a storm in business; don’t take it personal, it’s just life. Don’t go banging your head against the wall because you won’t solve anything that way. Don’t go criticizing yourself; don’t regret ever starting a business.

The fact that you failed in business doesn’t mean you are doomed to bad luck. It’s not your destiny to be a failure; failure and success is all about choice. Instead of talking down on yourself, cheer yourself up; you’ve just proved that you have the nerve to handle risk.

Starting a Business: It Takes More than Just an Idea

It takes guts to start a business and fail; and you’ve just built one and lost it. Most people will remain average because they lack such guts; they may die poor because they lack the courage to risk failure. Most people will never know what it feels like to lose a million dollar business and that’s why they will never build a billion dollar business.

3. Take responsibility

“Making mistakes is the privilege of the active. It is always the mediocre people who are negative, who spend their time proving that they are not wrong.” – Ingvar Kamprad

Taking responsibility for your actions is an essential ingredient to handling business failure and making a success out of it. Don’t go looking for whom to blame. If you were bad at cash flow management; admit it. If your business crumbled based on the decision you took or the business move you made; don’t deny it. Admit it and move on. Making mistakes is what makes us human.

"Only those who are asleep make no mistakes." – Ingvar Kamprad

4. Let your emotions flow

When you’ve lost a business; just let your emotions flow. Cry if you must and don’t feel bad about crying but I will prefer you do it in your closet. Don’t even think about hurting yourself because your predicament is just a phase that will come to pass. Allow your emotions flow because that moment of pain and tears will turn out to be one of your memorable and most inspiring moments in life.

5. Analyze the situation

Analyze the situation and circumstances surrounding your business failure. Where did you go wrong? What did you do wrong? What caused the failure? What would you have done to prevent the failure that you failed to do? These are the questions you should be answering at this point in time. If you don’t find definite answers to the questions; then you are bound to repeat the feat again.

You can also pick the pieces or leftovers of your failed business. They may prove useful in your next business venture.

6. Take note of the lessons

This is probably the most important element to converting your business failure into success. You will be a fool to lose a business and not learn from the experience. In fact, this experience may turn out to be a priceless asset in the long run. Yes, you’ve fail and there’s nothing you can do about it. One of the most important questions I always ask someone who has just lost a business, contract or an idea is this:

What did you learn from your failure?

If you can’t answer this question confidently; then more business failures await you. The lesson from your business failure is very important because it will form the foundation on which you will build a successful business. If you want to know how to turn your business failure into a learning opportunity; then read the article below.

How to Learn From Your Mistakes in Business

"Behind every adversity is an opportunity. If you lament over the adversity, you will miss the opportunity." – Ajaero Tony Martins

7. Resolve to succeed

"Get mocked at for as much as you can, fail as much as you can but don't quit. Let every mockery, every failure, be a source of inspiration for you to reach for greatness and that greatness will silence your critics." – Ajaero Tony Martins

You can either use your business failure as leverage to greater heights or as a spade to digging your grave. The choice is yours. Instead of being cowed by your failures; use your business failure as a stern resolve to succeed. Each time I fail; I resolute to strive harder and smarter to cover for my losses and failures. Failures don’t weigh me down; instead, failure inspires me to success. You should strive to use your failures positively.

“When I see a barrier, I cry and I curse, and then I get a ladder and climb over it.” – John Johnson

8. Start again

"Starting a business is like building a ship and embarking on a voyage, armed with a plan, a map and a team. You have to sail with uncertainty against storms and unpredictable weather. If your ship sinks, it's either you quit or you swim back to shore, build a new ship and sail again." – Ajaero Tony Martins

You have failed, cried your eyes out and learned some lessons. But the question now is: will you have the guts to start a business again? The word of God made me understand that the glory is not in the falling; but by rising each time we fall.

Just as I said earlier; “I am not afraid of failing, I am only afraid to quit the entrepreneurial process having come this far.” In the business world, you are not yet defeated until you quit the game. As long as you are still in the game; even if you are hanging by a finger, you can always start again.

"You can always quit, so why quit now." – Rich Dad

As a final note, this is my eight step guide to handling business failures. These are the exact steps I take whenever I fail to breakthrough in business. Before I draw the curtain close, I want you to know that failing in business is a painful experience; but it’s worth it if you go about it positively and make a success out of it.

Famous Business Failures of Successful Entrepreneurs

Have you experienced business failure in the past? Are you afraid of starting a business because of the fear of failure? Do you fear failure? Is failure a sign of defeat? Are there individuals who failed and still went on to succeed? If you desire an answer to any of these questions, please read on.

I got the inspiration to write this article when a woman lamented to me that one of the biggest mistake she made in life was to quit her plum job to start a business. I got home and reflected over the words of that woman and felt compassion for her.

I reflected over my own life and realized that I have been in the same shoes as the woman. I had regretted starting a business on several occasions. I remembered how I felt and still feel each time I fail; I usually feel bad because nobody likes been associated with failure. Failure makes you look like a dumb; while success puts you in the hero position. Failure makes you feel alone.

So I am writing this article for those who feel alone in their dark moments; I am writing this for those who feel downcast because they’ve failed. I am writing this to let you know that you are not alone. I have also been through the failure process and I am still going through it now. But I am not also alone; I have successful entrepreneurs and role models that have failed woefully in the past.

“Success is a poor teacher. We learn the most about ourselves when we fail, so don’t be afraid of failing. Failing is part of the process of success. You cannot have success without failure.” – Rich Dad

In this article, I will be sharing with you some of the spectacular business failures faced by these successful entrepreneurs. I am not sharing these business failures with you to get you excited; I am doing it to let you know that every successful entrepreneur in this world has gone through a stint of failure in business. Take a closer observation at the entrepreneurial path of the drop out billionaires and you will see that their successes were built on past failures.

“The business empires built by successful entrepreneurs were erected on the foundation of past failures.” – Ajaero Tony Martins

Do you think you are a failure in business? Do you think you are alone? Then read this:

Famous Business Failures of Successful Entrepreneurs

1. Henry Ford

Henry Ford failed twice in business before he finally went on to build the Ford Motor Company; and became one of the richest men in the world. He has this to say about his business failures:

“Failure is just a resting place. It is an opportunity to begin again more intelligently.” – Henry Ford
“If I lose a billion dollars, I will have it back in less than five years.” – Henry Ford

2. Thomas Edison

Thomas Edison went through a lot in life as an entrepreneur but his most spectacular business failure was his famous light bulb invention. He failed 10,000 times trying to invent the light bulb and after the 10,000^th time; he succeed. Today, his company General Electric is one of the most powerful companies in the world. Thomas Edison has this to say about his business failures:

“I have not failed. I have just found 10,000 ways that won’t work.” – Thomas Edison
“Many of life’s failures are people who did not realize how close they were to success when they gave up.” – Thomas Edison

3. Robert Kiyosaki

Robert Kiyosaki in his best selling book “Rich Dad’s Before You Quit Your Job” explained how he built a successful business (Nylon and Velcro Wallet Company) from scratch and lost this business due to incompetence. With experience from the failure of the Nylon and Velcro wallet company; he went on to build “The Rich Dad Company.” This is what he has to say about his business failure.

“There are no mistakes in life, just learning opportunities.” – Robert Kiyosaki

4. Colonel Harland Sanders

Colonel Sanders started out as an entrepreneur at the age of 66; when he developed a “Chicken recipe” business idea. He took this business idea to different restaurants and he was turned down over a 1,000 times. These rejections formed the foundation on which Kentucky Fried Chicken was built and this is what Colonel Harland Sanders has to say about his initial failures.

“I made a resolve then that I was going to amount to something if I could. And no hours, nor amount of labour, nor amount of money would deter me from giving the best that there was in me. And I have done that ever since, and I win by it. I know.” – Colonel Harland Sanders

5. J. K. Rowling

Harry Potter series is one of the best selling books in the world but what most people will never know is that the author “J. K. Rowling” was turned down several times by publishers. Instead of being deterred; she went on to become a billionaire author and this is what she has to say about her initial failures.

“What’s the worst that could happen? Everyone turned me down; big deal.” – J. K. Rowling
“Never be ashamed! There’s some who will hold it against you, but they are not worth bothering with.” – J. K. Rowling

6. Martha Stewart

Martha Stewart successfully built her company “Martha Stewart Living OmniMedia” from scratch and became a billionaire. But she made a mistake (insider trading) that negatively affected her reputation and landed her in jail. Being an entrepreneur with guts; she refused to be cowed by her mistakes and she bounced back to fortune and fame. This is what she has to say about her mistake and resulting failure.

“I know I have a very tough five months ahead of me, but I understand, too, that I will get through those months knowing that I have the ability to return to my productive and normal life, my interesting work and future business opportunities.” – Martha Stewart
“My new motto is: When you’re through changing, you’re through.” – Martha Stewart

7. Larry Ellison

Larry Ellison dropped out of college twice; and bounced from job to job without a direction. His adopted father told him that he would not amount to anything in life. But Larry Ellison started Oracle from scratch and went on to become one of the richest drop out billionaires in the world and this is what he has to say about it.

“The most important aspect of my personality as far as determining my success goes; has been my questioning conventional wisdom, doubting experts and questioning authority. While that can be painful in your relationships with your parents and teachers, it’s enormously useful in life.” – Larry Ellison
“I have had all the disadvantages required for success.” – Larry Ellison

8. Sir Philip Green

Sir Philip Green is a British billionaire and owner of one of the world’s largest retailing chain but what most people will never know is that Sir Philip Green went through four business failures before making his first million at the age of 33.

9. Donald Trump

Donald Trump is a savvy real estate billionaire that has gone through bankruptcy; not one but twice. He once had a personal debt of $1billion and corporate debt of $9billion but he courageously pulled himself out of the mess and this is what he has to say about his business failures.

“Anyone who thinks my story is anywhere near over is sadly mistaken.” – Donald Trump
“Sometimes by losing a battle, you will find a new way to win the war.” – Donald Trump

“I was relentless even in the face of total lack of encouragement because much more often than you think; sheer persistence is the difference between success and failure.” – Donald Trump

10. Richard Branson

Richard Branson is one of the few entrepreneurs that inspire me the most. He has gone through thick and thin; and has been on the verge of business failure on countless occasions. His first business (student magazine) failed despite showing strong potentials.

Richard Branson has also painfully shut down or sold some businesses just to survive; but despite all, he still emerged stronger and more successful. You can read about his business experience, failures and successes in his best selling book “Losing My Virginity: How I’ve Survived, Had Fun, and Made a Fortune Doing Business My Way.”

“We have always had a pretty competitive ferocious battle with British Airways. It lasted about 14 years and we are very pleased to have survived it.” – Richard Branson
“To be successful, you have to be out there, you have to hit the ground running, and if you have a good team around you and more than a fair share of luck, you might make something happen. But you certainly can’t guarantee it just by following someone else formula.” – Richard Branson

As a final note, these are the top ten entrepreneurs I chose to share their failure stories with you. The reason i shared these failure stories is to make you see that there is no shortcut to success and there’s nothing like overnight success. Every successful entrepreneur paid a price.

I still want you to know that you are not alone. I have had my own share of business challenges and I am still fighting it out. Just be strong, stay focused and stick to the entrepreneurial process. I will see you at the top.

Small Business Survival: How to Prevent Your Business From Failing

When it comes to business failures, mistakes in business and business challenges; I bet I have written a lot on this business blog with respect to those subjects. So today, I want to deal strictly on how to prevent your business from failing. If you interested in reading my published articles with respect to the subjects mentioned above; below is a quick link for you.

10 Causes of Business Failure You Must Watch Out For

12 Strong Reasons Why Small Businesses Fail

13 Undisputable Reasons Why Many Entrepreneurs Fail To Succeed In Business

10 Business Challenges Entrepreneurs Face When Building a Business from Scratch

15 Common Business Mistakes You Must Avoid When Building a Business from Scratch

How to Learn From Your Mistakes in Business

Since you have gotten a quick glance at the article list above, let’s get back to business. Statistics shows that 99% of all businesses started, fail in their first five years. Now what’s the cause of such high rate of business failure? I can’t answer that here because I’ve explained everything in previous articles; just check the articles listed above to find your answer.

In this article, I want to simply share with you how you can get your business off the list of the 99% failures; I want to share some tips that will help prevent your business from failing. If you are ready to learn, then below are eight ways to prevent your business from failing.

Small Business Survival: How to Prevent Your Business From Failing

1. Prepare for failure

“Prepare for bad times and you will only know good times.” – Robert Kiyosaki

Preventing your business from failing starts with you the entrepreneur because the survival of your business rest solely on your shoulders. Get yourself ready to fail but do all within your power to avoid failure and you will never fail. One of the primary reasons entrepreneurs fail is because they fear failure and that fear of failure prevents them from trying new innovations on their business.

“Most people say that the fear of failure is the beginning of hard work; that might be true in the world of employees and academic professionals but it’s doesn’t work that way on the street. When you fear failure, you become over cautious and over cautiousness is a requisite for failure. I believe the fear of failure is the beginning of failure. Entrepreneurs don’t fear failure; they thrive in the face of failure.” – Ajaero Tony Martins

As an entrepreneur, I will advice you prepare to face failure should in case it shows up. Preparing your mind for failure will help you bounce back quickly to success when you fall. Another way to prepare and prevent failure is to keep learning how to build a business. The business world is dynamic so you shouldn’t be static. After all, entrepreneurship is a process; a journey, not a destination. Use every free time you have to learn something and increase your knowledge; It will help your business in the long run.

2. Be careful of the decisions you make

"I have made tough decisions, always with an eye on the bottom line. Perhaps it's time America was run like a business." – Donald Trump

You are an entrepreneur and that makes you the pilot of your business. Therefore, the survival of your business tomorrow is dependent on the decision you make today. So don’t make hasty decisions; if you are in doubt over the effect of a decision you are about to take, discuss it with professionals and sleep over it. Even if it means seeking advice from external advisors; do it. A piece of advice from a seasoned professional can prevent your business from failing.

“Before making an important decision, get as much as you can of the best information available and review it carefully, analyze it and draw up worst case scenarios. Add up the plus or minus factors, discuss it with your team and do what your guts tell you to do.” – The Mafia Manager

3. Watch your cash flow

"The most important word in the world of money is cash flow. The second most important word is leverage." – Rich Dad

Cash flow is the life blood of business and I believe you have heard that a couple of times. Always keep an eye on the cash flow and work closely with your accounting department to keep your cash flow strong. Effective cash flow management is the bedrock of business growth.

"Know your numbers' is a fundamental precept of business." – Bill Gates

Make sure there’s a continuous flow of cash into your business even if it means making a few strategic moves on your creditors, debtors, suppliers, customers and investors. A business with poor cash flow management or a consistent negative cash flow is as good as dead.

"There is one paradoxical characteristic every entrepreneur must possess to succeed. An entrepreneur must be able to persuade his debtors to pay their debts promptly and at the same, must tactically delay payments to his creditors." – Ajaero Tony Martins

4. Move your business swiftly with the trend

"In today's rapidly changing world, the people who are not taking risk are the risk takers." – Rich Dad

On countless occasions, I have heard from successful entrepreneurs that trend is a friend; not an enemy and I think that’s the truth. Your ability as an entrepreneur to rapidly align your business with the changing trend can be a competitive advantage for your business.

"A company's ability to respond to an unplanned event, good or bad is a prime indicator of its ability to compete." – Bill Gates

Be swift to carry your business along with the current or upcoming industrial trend and innovation. Taking advantage of every available trend can help your business stay on course and prevent it from failing. Remember, trend is your friend.

"Every company can choose whether to lead or follow the emerging digital trends." – Bill Gates

5. Increase your sales and marketing budget

"The aim of marketing is to know and understand the customer so well that the products or service fits him and sells itself." – Peter F. Drucker

One of the silly mistakes made by most managers during a recession or decline in sales is to cut back on the marketing budget. Instead of cutting back on the marketing budget, I advice you spend more on marketing. Instead of going into hiding, I will advise you do some marketing and let your customers know you will stand by them; while at the same time letting competitors know that you are still in the game.

"Advertising is the mouth piece of business." – James R. Adams

How To Create A Successful Marketing Strategy That Suits Your Budget.

How to Create a Targeted Viral Marketing Campaign that Attracts Potential Customers

How To Write Charming Sales Letter That Holds Your Prospect Spell Bound.

6. Build good relationship with your employees

"We treat our people like royalty. If you honor and serve the people who work for you, they will honor and serve you." – Mary Kay Ash

Your employees are part of your business so treat them as you will wish they treat your business. Occasionally surprise them by either sending them an unexpected birthday gift or acknowledging their extra effort in presence of other staff. If possible, give incentives and promotions to staff with outstanding performance. It will encourage them and also motivate others to strive for excellence.

"People are definitely a company's greatest asset. It doesn't make any difference whether the company's product is cars or cosmetics. A company is only as good as the people it keeps." – Mary Kay Ash

How to Motivate Your Employees

7. Hire employees slowly but fire them fast

“If you own a butcher shop, don’t hire vegetarians. To hire the right people, you have to let the wrong people go.” – Rich Dad

Hire the right people in sensitive positions. You will know they are the right people after testing them. Never compromise the quality of your staff in the name of cutting cost; it will hurt your business in the long run. Another golden rule to preventing your business from failing is to fire employees fast.

“There will be times when you will have to be abrasive, even brutal to members of your staff. Don't worry that your people will say bad things about you because of this. They already have. But in general, try to be pleasant and accommodating. Try to please the greatest number who work for you that you can; antagonize the fewest. Blow smoke.” – The Mafia Manager

Do not hesitate to let go of bad members of your staff. If you don't get rid of them fast, they will negatively influence or demoralize other good employees with their bad attitude and inevitably, your good employees might leave.

"You must fire bad customers just as you would fire a bad employee. If you do not get rid of your bad employees, the good employees will leave. If I do not fire bad customers, not only will my good customers leave but many of my good employees will leave as well." – Rich Dad

8. Take care of your existing customers

"There is only one boss; the customer. And he can fire everybody in the company, from the chairman down, simply by spending his money somewhere else." – Sam Walton

Do you know that your customers are your company’s greatest asset? Without them, your business will not be in existence. From analysis carried out by the marketing experts, it has been reveal that it costs more effort and resources to find new customers than to retain existing ones.

"Business is not just doing deals; business is having great products, doing great engineering and providing tremendous service to customers. Finally, business is a cobweb of human relationship." – Henry Ross Perot

What if your customers abandon your business, will your business stay afloat? I leave you to answer the question. If you must know; existing customers are the most important key to small business survival. Treat them with care and they will spread the word about the wonderful experience you gave them.

"Courteous treatment will make a customer a walking advertisement." – James Cash Penny

One of my small business survival strategies during my early startup days was to stay true to our customers. My team and I established a closer relationship with the customers; provided excellent services and dealt with customer’s complaint with utmost priority.

"Spend a lot of time talking to customers face to face. You will be amazed at how many companies don't listen to their customers." – Henry Ross Perot

We did this because we knew the implication of losing one customer and beside that; our competitors were looking for an opportunity to poach our customers so we had to be on guard. If you interested in learning how to keep your customers loyal and happy, the articles below will be helpful.

"Customer service will become the primary value added function of every business." Bill Gates

How to Keep Your Customers Happy and Loyal Using Creative Gifts.

How to Use the Word “Free” to Influence Your Customer’s Psychology and Sell Your Products Fast

I believe with these few small business survival strategies, you can prevent your business from failing. Always remember that your chance of either failing or succeeding in business depends entirely on you, so be wise.

13 Reasons Why Entrepreneurs Fail to Succeed in Business

Are you an entrepreneur? Are you going to succeed in business or not? Though I am not wishing you failure, I will like to provide some pointers to why most entrepreneurs fail in business and how you can avoid business failure. All I ask of you is willingness to learn and an open mind; and you will see the point I am driving at.

This article is really going to be personal and touching. Why? The reason is because this article will force you to take a look at your life. Many individuals hate being told the bitter truth but I will be using this article as a medium to tell you the straight truth; so it’s up to you to learn from this truth.

The reason I am writing this article is because I have seen many entrepreneurs fail to succeed in business despite having brilliant ideas and a wonderful business team. These entrepreneurs fail not because they were destined to fail but because of some little overlooked factors.

Even with the best economic policy and the right market or product, these entrepreneurs and many more will still fail to succeed in business. The fault lies neither with the economy nor the product but in the entrepreneur. So without wasting your time; I am going to reveal 13 undisputable reasons why entrepreneurs fail to succeed in business. If you are ready to learn, then grab a cup of coffee, sit back and follow me as I spell out clearly the reasons why most entrepreneurs fail.

13 Reasons Why Entrepreneurs Fail to Succeed in Business

1. Lack of a well defined purpose

“Definiteness of purpose is the starting point of all achievements.” – W. Clement Stone

Lack of a well defined purpose is the major reason why entrepreneurs fail to succeed in business. I have come across a lot of entrepreneurs living without personal purpose; not to talk of business purpose. They have no dream, no mission, and no target. This type of entrepreneur wakes up in the morning and say "let me go out and see what today holds for me." They operate their business with no set goal.

If you take a closer look at these entrepreneurs, you will observe that their life is driven by fate. They believe in luck and simply take whatever comes to them with this sentences "such is life" or "life is unfair." These entrepreneurs have lost control of their destiny.

"Control your destiny or someone else will." – Jack Welch

I have a friend who happens to be an entrepreneur. He plays the lottery weekly, hoping to hit millions one day. He goes to his business daily hoping that one day; he is going to make a kill.

The funny thing is that he has faith that he is going to make it big but the problem is that his faith and hope are channeled in the wrong direction. The truth is that entrepreneurs like this friend of mine will never succeed in business. If they do, then luck is probably on their side.

2. Inability to aim above mediocrity

Okay, you must have probably scaled through the first point; that means you have a set goal, purpose and some North stars you are aiming at. If the situation described above suits you, then I say congratulations. If you have a set goal, you are one step ahead of the pack but a question I want to ask is this:

Are you aiming above mediocrity?

Is your goal challenging enough?

I am poised to ask this question because I have entrepreneurial friends who are goal getters but the problem with this business friends and associates of mine is that they fail to aim above mediocrity. Entrepreneurs in this category take their time to set goals but they set small goals; they set goals they know they can achieve easily.

This may sound ridiculous but I want you to know that there are entrepreneurs with this kind of mindset. They don’t want to fill guilty of not achieving their set goal; they don't want to stress themselves or go beyond their comfort zone so their best bet is to set small achievable goals.

An example of such is an entrepreneur with a current year turnover of $1,000,000, setting the goal of achieving a turnover of $1,050,000 in the coming year. Now what stops this entrepreneur from setting a turnover goal of about $2,000,000 – $2,500,000? The answer is mediocrity. They don't want to pay the price for success; they don’t want to leave their comfort zone.

"Those who dream small dreams, continue to live life as small people." – Rich Dad

If you are in the category of entrepreneurs described above; then it’s high time you change your perception towards goal setting. If you continue to operate under the same perception of setting small goals, you might not fail but you will definitely not be among the outstanding achievers.

“Aim for the moon. If you miss it, you may hit a star.” – W. Clement Stone

3. Lack of self discipline

This is another undisputable reason why entrepreneurs fail to succeed in business. The worst thing about an entrepreneur that lacks self discipline is that there is no remedy. He can never succeed in business even if placed in the best economy. Discipline starts with self control and self control is a product of a strong self imposed personal standard.

4. Procrastination

"Show me a failure and I will show you a man, who does today, what he should have done yesterday." – Ajaero Tony Martins

I read in a book that procrastination is time’s natural assassin and I know that’s the truth. Procrastination is as a result of laziness and strong resistance to leave your comfort zone. But let's face reality, every one of us has at one time or the other procrastinated. There is nothing wrong in that, but the evil comes when it becomes a habit.

5. Over Cautiousness

"He, who insists on seeing with perfect clearness before he decides, never decide." – Henry Frederic Amiel

Over cautiousness is probably the utmost reason why entrepreneurs fail to succeed in business. Some call it fear and others call it analysis paralysis but it all boils down to one point; inability to take action despite tremendous proof. I have seen investors turn their back to excellent investments simply because they are being over cautious.

I have seen entrepreneurs with the right business idea, the right plan and everything needed to start but they just do not make a move. They are waiting for the perfect economy; the perfect trend and the perfect time. They want all lights to go green before they leap. The sad news is that in business, all lights never go green.

“It’s the duty of an entrepreneur to grab one piece and start the business, the remaining two pieces will be found along the way. Finding the remaining two components may take a year or more than 10 years; the point is, start with what you have.” – Robert Kiyosaki

Successful entrepreneurs are known to start with what they have at hand and pick up the rest along the way. The truth is that over cautiousness is the brain child of fear. An over cautious entrepreneur is simply afraid of failure and no one plays a game with fear and win.

“Don’t fear failure so much that you refuse to try new things.” – Louis Boone

6. Lack of persistence

"Press on. Nothing in the world can take the place of persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent." – Ray Kroc

Is persistence a requisite for success? My answer is a resounding yes. Successful entrepreneurs such as Bill Gates, Ray Kroc, John D. Rockefeller and Henry Ford emphasized the importance of persistence in building a business. If these successful entrepreneurs are all pointing towards persistence as a key to success; then, it’s definitely a must have to achieving success in business.

"Most people give up just when they are about to achieve success. They quit on one yard line. They give up the at last minute of the game one foot from a winning touch down." – Henry Ross Perot

Lack of persistence is the primary reason why entrepreneurs fail to succeed in business. Some entrepreneurs start their business on a very good note with high expectations but if their expectations are not met, they get weary and just when they are about to breakthrough; they quit and say "it doesn't work." They quit when just a little more persistence should have made the difference between success and failure.

“You can always quit, so why quit now.” – Rich Dad

“Quit now, you will never make it. If you disregard this advice, you will be halfway there.” – David Zucker

7. Bad business associates

“Be careful of the environment you choose for it will shape you. Be careful the friends you choose for you will become like them.” – W. Clement Stone

Just as friends will either push you up or pull you down, the same is applicable also to business associates. There’s not much to be explained on this because the lesson is clear. If you take advice from non entrepreneurs or your most trusted friends are not entrepreneurs; then your chances of succeeding in business is slim. No more, no less.

"Seek advice on risk from the wealthy who still take risks, not friends who dare nothing more than a football bet." – J. Paul Getty

"It is better to hang out with people better than you. Pick out associates whose behavior is better than yours and you will drift in that direction." – Warren Buffett

8. Lack of focus

"The sun ray does not burn until it is brought to a focus." – Anonymous

I have come across entrepreneurs who are on a quest to create multiple streams of income when they have not being able to grow a single business. Please forget the multiple streams of income shit. Start a business and focus on it. Even if it’s your dream to own multiple businesses; start with one and then diversify when you made it in that business.

"The wise man put all his eggs in one basket and watches the basket." – Andrew Carnegie

"Concentrate your energy, your thoughts and your capital.” – Andrew Carnegie

Bill Gates worked on Microsoft for years; Warren Buffet did the same with Berkshire Hathaway. Observe both men; multiple streams of income did not make them rich; a single business did.

"The men who have succeeded are men who have chosen one line and stuck to it." – Andrew Carnegie

9. Unnecessary Spending

"Watch the costs and the profits will take care of themselves." – Andrew Carnegie

Most entrepreneurs spend money on impulse; they lack control over their personal cash flow. If you cannot control your personal cash flow, I wonder how you can control that of your business.

"The most important word in the world of money is cash flow. The second most important word is leverage." – Rich Dad

"The philosophy of the rich and the poor is this: the rich invest their money and spend what is left. The poor spend their money and invest what is left." – Rich Dad

10. Lack of enthusiasm

"Enthusiasm is the sparkle in your eyes, the swing in your gait. The grip of your hand and the irresistible surge of will and energy to execute your ideas." – Henry Ford

I don't really know what to write about enthusiasm because it is self explanatory. Enthusiasm is simply passion, self encouragement or zeal. No great business can ever be built without enthusiasm on the part of the entrepreneur. If you are not enthusiastic or passionate about your business; you will fail out rightly.

"Every tomorrow has two handles. You can take hold of the handle of anxiety or the handle of enthusiasm. Upon your choice so will be the day." – Brian Tracy

11. Inadequate Capital

"Capital can do nothing without brains to direct it." – J. Ogden Armour

Cash flow is the blood of business. Inadequate capital can ruin a business; in fact, lack of capital is the major reason why entrepreneurs fail. Entrepreneurs sometimes might come up with winning ideas or strategies but lack of capital will hinder its implementation. There’s a lot I can write with respect to capital but I will save the space.

“The primary duty of an entrepreneur is to raise capital. An entrepreneur must continually raise capital from investors, customers and suppliers. If an entrepreneur cannot raise capital; he ceases being an entrepreneur.” – Robert Kiyosaki

12. Lack of integrity

"It takes 20 years to build a reputation and only five Minutes to ruin it. If you think about that, you will do things differently." – Warren Buffett

Above all things, your greatest asset in business is your reputation. Most entrepreneurs fail to succeed in business despite the fact that they have sufficient capital. They fail because they lack integrity. All over the world, investors, customers, suppliers are looking for entrepreneurs they can trust.

“The most important thing in your business relationships is your reputation for honesty. If you can genuinely and sincerely fake honesty, you will be a success. Never doubt it.” – The Mafia Manager

Let me tell you a secret you don't know. With integrity, you can start a business with none of your own money. Some entrepreneurs fail to deliver when given a credit line. As an entrepreneur, you should preserve your integrity like gold. You must honor your words and agreement; avoid shady deals and sharp practices.

13. Desire for instant gratification

"You know you are on the road to success if you would do your job and not get paid for it." – Oprah Winfrey

This is a fundamental reason why entrepreneurs fail to succeed in business. They desire instant reward; they want to get rich quick now. However, they fail to recognize that it takes time to build a successful business. There is no short cut to success, you must give your business time to grow and yield profits.

“Patience; it’s the most important attribute to creating wealth, it’s the greatest business asset. Wait for the right time to make your moves. Let your business grow naturally, not by pressing your luck.” – J. Paul Getty

"I never attempt to make money on the stock market. I buy on assumption they could close the market the next day and not re-open it for five years." – Warren Buffett

As a final note, my advice to you is this; don't just read this article and dump it. Instead, read it and analyze your life to see where you are lagging behind. Use this article as benchmark to avoid business failure and I will see you at the top.