Why Startups fail?

Every person desires to become his own boss at some stage of his life. Many think that the capital, good product or services, and skilled manpower are enough to become a successful entrepreneur. Entrepreneurship demands much more than this from you, and that is your psychology. in fact it's a real capital that goes unchecked before anyone takes the decision to start some business under some temporary but impulsive influences. But actual journey depends on your psychological mold that determines whether you can sail through all the odds with the same zeal to become a successful entrepreneur.

Entrepreneurship is not essentially innate quality. It can be developed or modified after analyzing your present psychological set-ups, such as strengths, weaknesses, and shortcomings. There are many budding young entrepreneurs those are ablaze with the passion to become another Steve Jobs or Zuckerberg, but the unfortunate scene is about 80% start-ups are seen being shut down within three years from the day they start! 

Why they did fail? 

They had the passion. They were intelligent. They had sufficient start-up capital. They had the good business plan and revenue model. 

And yet they have failed while most of them are facing depression and other disorders.

This is because though they had everything at hand they didn't try to analyze themselves as to whether they have the perfect psychological base that is required to become an entrepreneur. 

Did they try to get help from the entrepreneurship psychologist's help to remove those psychological barriers when they had started struggling with the unforeseen troubles to get an entry in the field they had thought would be simple? In fact, nothing is simple no matter how the idea is great! 

The common problems faced by the budding entrepreneurs are described by the experts--

1.     Lack of focus

2.     Lack of motivation, commitment, and passion

3.     Too much pride, resulting in an unwillingness to see or listen

4.     Taking advice from the wrong people

5.     Lacking good mentorship

6.     Lack of general and domain-specific business knowledge: finance, operations, and marketing

7.     Raising too much money too soon or inadequate capital.

8.     Wrong forecasts and execution.

9.     Inability to face negative circumstances.

10.  Too much anxiety when calm is required.

These are the few points out of many. You can see that most of the above-listed problems those fail you are the outcome of psychological lacunae those, later on, add to many problems like distress, frustration, and feeling of hopelessness that leads to one after another wrong decision to meet the failure sooner or later.  

These problems can be avoided. Only thing is you need to understand yourself with the help of the expert. You must know whether you have the psychological abilities to take over the venture and if not how the abilities can be gained. You can identify your lacunae in advance and can overcome them with the right help. Entrepreneurship characteristics can be suitably developed to enable you to achieve success! You need an expert or mentor, not only to prepare you but to advise you when the things don't move the way you had expected. Only then you can sail through the rough weathers to see the sunshine of the success!

-Sanjay Sonawani

Entrepreneurship Psychologist & Adviser

9860991205