Tweet

#1 Reason Entrepreneurs Fail (And What to Do About It)

Guest post by: Stefan Doering

Article Overview: Whenever entrepreneurs get into trouble with their companies, there are many things they can focus on to “fix” it, but there really is only one that trips them up. Always. Learn what it is and what to do about it when it happens to you.

#1 Reason Entrepreneurs Fail (And What to Do About It)

Like most of us, I’ve been consumed by what has been going on with the Qaddafi regime. Libya is the latest Middle Eastern authoritarian state to be struggling and possibly collapsing.

This is no surprise. Authoritarian states tend not to last.

The authoritarian model, where a few people control the fait of many, only lasts when it operates in their people’s best interest.

But usually it doesn’t and the leader becomes disconnected over time. Eventually this disconnection leads to breakdowns with the people it was ostensibly designed to serve.

Just look at what Maummar Muhammad al-Qadaffi now has to deal with.

In business, this is no different.

The more disconnected the decision makers are, the more likely business breakdowns and possibly failures. Some well-publicized and extreme examples are Bernarld L. Madoff Investment Securities, Countrywide Financial, and the American Insurance Group (AIG), among many others.

Don’t think for a second this “disconnection” can’t happen to you. Most likely it already has!

Disconnection can take the form of being in touch with the market you are in, the technology you use, products or services you sell, businesses you compete with, employees and communities you work with and so on.

To be disconnected from any of these at any time is not good for you or your company.

To be disconnected comes from one thing and is the #1 reason entrepreneurs fail:

Ego.

Your ego drives you to do what you do. Many entrepreneurs tell me, “My product/service is the best in our industry.” Really? When was the last time you checked to see what your competitors are doing? Or whether your market or technology has changed and made what you do either #2 or possibly even obsolete?

I cannot tell you how many entrepreneurs tell me crap like that.

We all have an ego that drives us. That is a good thing and also a challenge for most of us.

Being an entrepreneur is very competitive and without an ego driving you, your chances of success decrease. But when your ego takes over is when you can get bit in the &*@$.

For entrepreneurs, ego dominance can show up in many ways. If your company is struggling right now, it is most likely the manifestation of your ego somehow getting in the way.

Ego-driven thoughts can range from, “I have been doing this for many years, I don’t need an outsider [younger person, employee…] telling me how to do things”, to “my company has nothing to do with the environment, so I don’t need to bother” or anything in between.

When your ego has taken over, ask yourself how up-to-date you are on:

· your industry

· your competition

· your competitive advantage

· technology that impacts your business

· engaging your team

· your community and other stakeholders

· your company’s responsibility towards the environment

How you answer these questions is a direct function of how connected you are to the things that make a business thrive in today’s world.

And if you’re like most entrepreneurs, you probably could use some improvement on being connected with these issues.

But it is simple to get reconnected by going back to the basics:

1) Your company’s vision—what are you committed to making happen that inspires everyone around you.

2) Core target market—that customer that generates 80% of your sales.

3) What you really sell—what your product or service makes your customer feel about themselves, their business, etc.

4) Don’t go it alone—engage your stakeholders: employees, customers, communities, investors, and vendors.

I suspect the authoritarian regimes of the Middle East could benefit from using these four principles in getting reconnected with their people. Of course that might mean they would have to let go of the reins, but that might be a good thing for them.

At least they would get back control from their egos.

Action Steps for the Week:

What are you not letting go of that is not going the way you want it?

Get clear on what the core issue around that topic is. Then do the following:

· Let go of what the outcome “needs” to be.

· Open yourself to possibilities beyond what you think what should be.

· Involve your stakeholders in solutions—make it their idea.

· Revisit, recreate or revamp your company’s vision.

· Rebuild your strategy using your stakeholders.

· Leverage your stakeholders in implementing your new strategy.

When your ego steps in, as it most certainly will, say to yourself, “Ego, thanks for sharing and now I have work to do.”

And then get to work!

Related Articles
  Why Some Entrepreneurs Fail
  Creating a Successful Business Mindset
  Entrepreneur's Success Center- Why Businesses Fail
  Work At Home Internet Business - Top Reasons For Failing
  Online Business: "What, No Big Bank Loan?"
  Home Based MLM Business – Why do only 3% succeed?
  The Genius At Work
  Which Half of Your Sales or Management Effort is Working?
  4 Deadly Sales Training Blunder You must Avoid
  Successful Entrepreneurs
  Five Steps to Startup Success
  How to Succeed in Business, Without Setting Your Hair On Fire
  Why Many People Will Fail as Entrepreneurs
  Top Online Business – Your Work Ethic is Important
  Why Failure Is Essential To Online Entreprenurial Success
  Successful Networking: Traits to Look for in a Business Partner
  Operator Error Is Why Most Businesses Fail
  Market your Business like the Pros Do
  How to run a business successfully
  Entrepreneurs Just Get Better With Age

Article Tags: BEST Coaches, business coaching, business development, Ego, entrepreneur training, Middle East, Qaddafi, stakeholder development, Stefan Doering, sustainability



Related Forum Posts
Re: 20 Reasons why you must be a reader - Hi there, It is quite amazing that ten days ago you wrote this post and still wait for responses. I am sure virtually nobody comes to this forum who does not read, so come on help 'ideasprosperity' and list the 20 reasons we benefit by reading books. Reason no 2: We can learn from the successful people what to do and what not to do. (There is so much information on this subject on Evancarmichael) Reason no 3: ............????
Re: 10 Reasons Who Startups Fail & Book Recommendations - Great post,but please edit the headline. I presume it is "10 Reasons Why Startups Fail & Book Recommendation
Re: Are you insane??? - I am not sure as to whether the author is insane or not but I am sure that its not gonna work. Reason is quite simple - If I set my watch 30 minutes earlier I am aware of it and when I am aware I can always tell myself - Its still 30 minutes to go!
Re: What inspires you? - Another inspiring thing is which I really likes "Most People Fail because, their dreams are small". Most people like to engage with something or teh other. If they can truly listen to their inner voice and work towards achieving it, then you can see "miracle in action". So, big changes happen, when you think BIG. If you cannot to think BIG, you cannot do BIG things too. Robert
list building - OK.... I think I get it. Reason I'm curious is that I'm working on a Health product site with a friend, it will fit nicely with the client base on arcamax. We're planning to set up an affiliate program to drive sales and looking for low cost alternatives to generate traffic. We will be creating several reports, and a book is already available. We just need to get the puzzle pieces in place for the site - then get the traffic.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

The Digital Diet by Daniel Sieberg

Top 7 Tips to Real Estate Agents’ Success

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.