Why do many people fail in business or startup?

Hello guys!!!

In the previous article, I shared with you the topic of whether business is easy or difficult? In it, I analyzed 15 skills & qualities for successful business (READ MORE).

At the request of readers, I continue to write an analysis of the reasons why many people who do business or start a business fail or also known as…. taste bitter fruit.

As you know, I come from a family with parents who were revolutionaries, and no one in my family or clan has ever done business or started a business successfully.

What I have achieved today all comes from my constant learning & efforts to achieve my desired goals. Therefore, what I am about to share with you are practical experiences that I have accumulated in my 28-year career.

First of all, I want to send you a message: “There is nothing shameful if you feel happier being an employee or working for a source of income. By nature, some people are not capable of thinking about business”.

However, if you are motivated and have a big enough desire, starting a business is not too difficult.

According to Japanese-American multi-millionaire Robert Kiyosaki, doing business, starting a business or owning your own business is one of the four ways to make money or get rich.

So, why do so many people fail in business or starting a business? Here are 20 reasons…

1. Lack of market research: Not understanding customer needs and wants can lead to developing the wrong product or service.

2. Weak business plan: A business plan that is not detailed or not tailored to the actual situation can affect success.

3. Poor financial management: Not controlling costs or cash flow can lead to financial crisis.

4. Lack of experience or knowledge: Lack of experience in the industry or in management can lead to wrong decisions.

5. No competitive advantage: Lack of differentiation or advantage over competitors can make it difficult for a business to stand out in the market.

6. Targeting the wrong customer: Targeting a customer that does not have a real need for your product or service.

7. Weak marketing ability: Not having an effective marketing strategy to attract customers.

8. Poor team management: Difficulty in building and maintaining an effective team, or lack of good leadership.

9. Changes in the business environment: Unexpected situations such as economic crises, changes in laws or market trends can have a major impact on a business.

10. Impatience: Many entrepreneurs expect immediate results and do not have the patience to grow sustainably over time.

11. Lack of flexibility: Not willing to change strategies or adjust products based on customer feedback and market conditions.

12. Unclear goals: Without specific or clear goals, the development process can become chaotic and directionless.

13. Lack of investment in technology: Not keeping up with new technology or not investing in technical platforms can cause a business to fall behind.

14. Not focusing on customer experience: Ignoring customer needs and experiences can lead to lost customers and reduced revenue.

15. Poor people management: Not knowing how to evaluate and develop employees can create an ineffective work environment.

16. Ignoring online marketing: In the digital age, not investing in online marketing can reduce your ability to reach potential customers.

17. Over-reliance on a large customer: If a business is too dependent on a large customer, losing that customer can cause serious damage.

18. Internal conflicts: Conflicts within the founding team or between team members can reduce work efficiency.

19. Poor risk management: Not planning for emergencies or not developing a risk response plan can have serious consequences.

20. Lack of passion or commitment: Not having enough passion or commitment to the project can lead to lack of motivation and ineffectiveness in work.

In the early years of my career (from 1996 to present), the only “weapon” I had was the desire to change, the desire to get rich. Most of the knowledge and skills I acquired were self-taught.

I have experienced countless failures, so what I share with you is the truth, the reality.

Please read the above lessons to know how to avoid and prepare carefully before entering the challenging but potential world of business and entrepreneurship to improve the quality of life and help more people (see more business professions and skills for successful business READ MORE).

I am always by your side when you need my advice or guidance.