There are so many reasons why people want to start out a business as there are as many reasons why people are afraid to get into it. For some, it is because of the perceived enormous risks, especially to the uninitiated, although to many it is the lure of a changed lifestyle, a feeling of independence and lets face it, the opportunity of better income and when done right, even wealth.
Also read: 25 Profitable Business You Can Start anytime
The greatest difficulty though is the starting.
Although at the outset, most potential entrepreneurs would never dream of failing, the facts though would eventually seep in.
We have often been told that 90% of businesses fail during the first year of operation and only a small percentage of the remaining ten-percent really make it.
There are many reasons for these failures. It would then be smart to look closely into these failed entrepreneurial ideas and take lessons as to why businesses fails if one is to increase the chances at succeeding. Some examples of failed entrepreneurial ideas are:
Discover your passions and make a business out of it.
Nothing worthwhile in this world has really been achieved without passion and this is very true. However, there have been a lot of businesses built on a passionate desire to sell what one truly believes in that did not make it. Why? Because for all the passion built into it, the market is not primed for it. Another thing is…
Enthusiasm is required if one is to succeed at any endeavor. It is the fuel that fires a person up. It is the motivation that serves as the driving force to start out into a direction and the energy that could supply the individual as the direction is taken. It is also the source, sadly, of frustration.
Also read: 50 Best Online Business Ideas for Female Entrepreneurs
Getting into a business that has been proven to succeed.
Let me site an example. When Internet was just starting, someone in my neighborhood started an internet shop. It did very well and so as with anything that goes well, someone started picking the idea up and opened a shop. It did okay and the idea caught fire. Soon another opened up. As could be expected, the shops started competing for the customers and prices were driven down. Soon afterwards, everyone has access to the Internet and most of the shops eventually closed. Get the idea?
Another example of an entrepreneurial idea that could seriously go wrong is getting into a similar business that someone has done successfully. Make a careful study because unbeknownst to you, you could be getting into a business that has better resources, is better funded, is a niche market that could produce goods faster, cheaper and of better quality. When you get into these niche businesses, you are already on an uphill climb the moment you start.
Even granting that the business that you are getting into is at par with what you have, you could be drawn to a constant head to head battle and when that is done, margins will be the first to suffer.
Getting into a business for very strong profit motive.
Now, what could be wrong with that? Ask any seasoned businessman and he’ll say everything. For one, marketing, merchandising and communication and other goodwill support that is so vital in making your goods compete in the marketplace could already suffer even at the start.
What could be done then?
Take stock of what you have and of what you are. There are things and characteristics unique in each of us that could be trimmed and tapered to the needs of the marketplace. This may be to simplistic but introspection is the first step. You are as different as the person sitting next to you. Surely there is something that only you could do best and in a unique manner that could be offered. Yes. This is another way of saying being passionate about what you do but take a step farther. What is it that will rub your passion on other people. Said another way, will other people really want to buy it? Or how would you make the market to want what you are offering? How would you make them react favorably?
Study, study and study some more. Know your competition and your market well. Do not underestimate the cost nor over project the sales. Nothing is really that new in today’s marketplace. Only the approaches and the processes could differ which could spell a marked difference when you put your personality into it and not someone else who have succeeded before you.
There is a sufficient supply of good books that are immediate for practical business application out there. Many times, when potentially good ideas fail, it could be because the person did not take that much time in discussing the ideas with someone else who is in the know and could be downright honest. It could also result from not coming out with a good business plan or has not taken that much investment at self-discovery and a myriad of other little things.
Finally, do not do things if the only reason that tempts you to do it is the profit motive. You could end up doing things you do not want to do which will not give you the energy required to stick to it.
For other things, there are online schools that could help you gain a better head start and help increase your chances at executing your entrepreneurial ideas.