8 Reason Young Entrepreneurs Fail (And How To Avoid Them)
In this article, I'll discuss mainly on young entrepreneurs. Precisely, on reasons young entrepreneurs fail, and also shed light on how to avoid those failures.
Being specifically made for young entrepreneurs doesn't write you off the benefit of reading this post if you're not a young entrepreneur.
This writeup is valid for every category of entrepreneur.
The no. 1 reason young entrepreneurs fail is due to lack of experience. Inexperience has pushed a lot of young entrepreneurs into making costly decisions. Some are lucky to survive some of these disasters while most aren't.
Mistake made, especially in the financial aspect of business, hinders the grow of young entrepreneurs and make them fail.
If you're going into business as a young entrepreneur, the very first thing you should do is to get experience.
How do you get experience?
Go for internship program, intern somewhere relevant to your desired business, or, have sufficient knowledge along the line before scaling up (Be sure of your card before placing a huge stake on your business).
2. Absence of Business Plan
Young entrepreneurs tend not to know, or, overlook the importance of business plan.
Their not having a business plan, condition them into running business by trial-and-error.
Unfortunately, most time trial-and-error...fail!
Before starting a business, go make a business plan. Plan your business before starting out. Write out how you'll get raw material, make products and get them delivered to clients.
Know in details, how your business will be managed.
3. Lack of Funds
Inadequate cash flow has stopped many young entrepreneurs from going far in their entrepreneurial journey.
Money is an integral asset in every business, lack of it undermines the growth of many business. It stop them from attaining success.
As a young entrepreneur, you should make sure to secure enough funds before going into business.
Some of the source of gathering funds include, but not limited to bank loans, grants, angel investors, family and friends, and personal savings.
4. Having No Mentor
Forget about people trying to paint entrepreneurship to be fun...it's no joke.
Running a business is not easy.
Going into business without having a business coach is like placing your bet on a blind horse.
Even in life, to be successful...you must have a mentor. If you have none...go get one.
as a young entrepreneur, you are most likely to fail if you do things yourself. Seek people in your niche to mentor you.
Don't settle for learning things by trial-and-error....you'll fail if you do things that way.
5. Early Loss of Interest
Due to various reasons, young entrepreneurs tend to lose interest rapidly.
They forget the fact that entrepreneurship is a marathon and not a race.
They forget that even in life, it takes a while to record a significant amount of success in anything one is doing.
If you're a young person who is thinking of going into business, rub it off your mind that you'll become overnight success.
Hustle! Strive hard, work day and night, be committed and always remain focus.
At the end, it'll pay off and you'll be glad you keep going when things are tough.
6. Fierce Competition
The business world doesn't care about the age of an entrepreneur. No one cares what your age is.
Older people who are likely to have garner experience over time tend to pull off fierce competition.
Young entrepreneur get overpowered and discouraged, they couldn't keep up with the competition in business, eventually they quit.
To deal with fierce competition, do your assignment well.
Know the industry you're getting into, team up with other entrepreneurs and learn.
At the long run, you'll grow and have fair skill in your arsenal to compete.
Banks and investor usually avoid young entrepreneurs, they have little or no faith in young entrepreneurs, they consider them as novice.
They want to entrust their money, time and resources in people they deem fit and capable of handling them.
Young entrepreneurs do not fail among the favourable category of people who are given most opportunity.
Hence,they get demoralized and pullout when they seem not to find a way out.
If you're a young entrepreneur and want to succeed in business.
Network and meet different people, doing this, you'll open yourself to new people, new opportunities will locate you and you'll grow experience from there.
Thanks for reading.
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