According to Bloomberg, 8 out of 10 entrepreneurs who start businesses fail within the first 18 months. Hard as it may sound, its the truth. What suddenly happens to all that passion, excitment and zeal that characterizes most startups?
Eric T. Wagner who has been an entrepreneur for over 30 years says the cracks in the foundation start well before the brutal day of financial collapse. In his 5 reasons for failure of some small businesses, he says:
“An amazing thing happens when an entrepreneur sees a potential opportunity in the market, or dreams up a new idea for a product/service: they retreat to a cave. In my experience, this is the worst move an entrepreneur can make because complete understanding of your customer is imperative to your success.” A lot of successful entrepreneurs have confirmed that some of their worst failures came as a result of their fear or self doubt.
To overcome thse hurdles, experts often advise that owners of startups should learn to build a smart team, and establish trustworthy networks in their line of business. Successful, entrepreneurs should understand that they must work on their business, not in their business.