Why do Most Entrepreneurs Fail?
Many ‘experts’ say, “Entrepreneurs fail because they are under capitalized.” This fear of being “under capitalized,” this lack of money as well as the absence of a steady paycheck, is what keeps most people clinging to job security as an employee. But it’s not why entrepreneurs fail.
While being undercapitalized is a challenge, it is not why most entrepreneurs fail. It’s a lack of entrepreneurial education, real-world business experience, and guts.
Every entrepreneur I’ve ever talked to says they are “under capitalized.” They never have enough money to meet all the financial obligations required as an entrepreneur, let alone the capital needed to grow their business. Yet, somehow, true entrepreneurs keep going. Then one day, for some entrepreneurs, the money starts pouring in. It may take years.
I always find it amusing when I hear people say, “Oh, she was lucky.” Or “They’re an overnight success.” Few know or appreciate the real story behind entrepreneurial successes. The reason they succeeded is they learned the secret. The secret to leadership.
The primary reason why most new entrepreneurs fail is simply because they lack the core training, the core strengths they need to withstand the rigors of being an entrepreneur. Some people call it guts. Others call it perseverance. In the military, it might be put this way: “Stand up, get off your butt, stop feeling sorry for yourself, stop pouting, stop sucking your thumb, and get going again. Your mama is ashamed of you—because your mama is tougher than you are.” I think you get the point here.
Another important reason why most entrepreneurs fail is because our educational system trains people to be employees, not entrepreneurs. The world of an employee is very different from the world of an entrepreneur. One big difference is the concept of paychecks.
If you think about it, you’ll realize that the person who signs your paycheck controls your life. Shouldn’t that person be you? It probably should be, if you are strong enough.
If an employee does not receive his or her “paycheck” they quit and go looking for a new job”. Most entrepreneurs must be tough enough to operate, sometimes for years, without a “paycheck.”
The military taught me a toughness I greatly valued later as I became an entrepreneur. The leadership I learned through the military gave me the tools I needed to become an entrepreneur.
I just wrote 8 Lessons In Military Leadership for Entrepreneurs so I could teach you the lessons learned through my training in the Marines. If you want to be an entrepreneur, then this book will teach you some important and hard lessons. And… it’s easier than going through boot camp.