10 Reasons Why Most Entrepreneurs May Never Overcome Their Barriers by Sherese Duncan (MY BIZ Coach) (2542 hits)
Based on a survey Effició, Inc. conducted with 100 small business owners two to seven years in business, with zero to twenty employees, their strategic initiatives failed. Why? There were several reasons, but for this report I want to share with you the most common reasons based on the three main barriers mentioned:
1. They did not know how to be strategic. In business there are a lot of so called ‘buzz’ words that sound good but they’re not always understood. The survey revealed that most of those surveyed knew the definition of strategy and being strategic but they did not know how to be strategic. Being strategic means thinking in the future while functioning in the present.
2. They did not view their business as an investment. Most of the respondents had a savings account but didn’t know the return they were getting on their money. This may seem small initially but it’s very important to know the returns on any investment. Your business is an investment and you should expect a return on that investment. Returns can be in the form of wealth, profit, income, or cash.
3. They had a great marketing program but no infrastructure to support business operations. This is the center of failure, confusion, and disconnect within small business. It’s necessary to implement a stellar marketing program, but if you don’t have the infrastructure in place to not only support your marketing but also the full business internally and externally – you will ultimately go bankrupt.
4. They did not focus on creating a business model based on their vision. Creating a small business based on value creation is very different than one based on building a family business to be passed down – this should be defined in the beginning. In business, there are several terms to learn as you have discovered. But one of them is very important in your business development. It’s called a Business Model. A business model is a tool that contains a set of elements and their relationships used to describe the business logic of a company and it provides a simplified representation of how that company conducts business. The question becomes what are the elements and how are they related? And most importantly, does the company follow its own business model?
5. They did not establish their culture. Culture is what gives your company direction, focus, passion, and personality. Think about it this way, have you established the experience you want all those that interact with your business to have? If not, it’s probably why you’re not reaping the results you’re shooting for.
6. They did not focus on long-term goals; they were focused on the fast-track to success. Short-term results (successes) should be a focus but not in lieu of long-term sustainability. If you want your business to provide for you for the rest of your life you have to focus on both and celebrate them all.
7. The owners did not function as a leader and innovator. Leadership is another one of those ‘buzz’ words that we know and understand but we don’t always know how to implement the concepts. Next, in order to lead you have to be innovative and forward thinking. If you only operate in the moment, you will lose to your competition every time. You have to lead with innovation and insight.
8. They did not have a clear definition of success. For some, the word Success brings thoughts of money and recognition. But for entrepreneurs, I’d stay away from defining success based on recognition and money only. When clarifying your definition of success, try defining success from your client’s point of view. For example, “I’ll know I’m successful when my clients are clear, consistent, and comfortable with where their business is and where their business is headed.”
9. They did not clarify who their BUYING target clients were. When you clarify a buying target market (those who not only need but want what you offer) you’re better prepared to know where to find them and how to persuade them to buy your solution. You can easily develop messages that will appeal directly to them. Without clarifying your buying target, you’ll waste time, effort, and money. Drum roll please….
The number one reason why Most Entrepreneurs Will Never Overcome Their Barriers based on our survey…
10. They did not engage in focused, structured education and stuck to it long enough to see results! It’s not enough to analyze the business; you have to analyze your skill sets and continue to grow all the time. Not only you, but also your employees. If you don’t have a Business Continuing Education Program set up for you and your team – do it now. It starts with a personal SWOT analysis. Surprised? After my years of working with entrepreneurs, I’m not!
The realization of the importance of mindset, skills, and execution has to come naturally. I can’t make you take this seriously – that’s your choice. But, I can show you the results of making it a priority. I bet you’re thinking about all the reasons why you can’t, why you won’t, or why you haven’t…I call them excuses.
Thanks for sharing this. I think many of us who are entrepreneurs or aspiring entrepreneurs have run into one or more of these pitfalls. Learning these lessons the hard way tends to be expensive in the long run!
Friday, November 7th 2008 at 9:32AM
Jon C.
It is already hard for and minority to be successful in todays economy. Than you have these things that is added to the up hill claim. It was nice of you to post this. I hope all of us listen and not make these mistakes in the future.
Friday, November 7th 2008 at 4:31PM
Timothy Griggs
