Some Reasons Why Entrepreneurs Fail

In my 25 + years working with professionals inconfidence to take risks and fail.    Successful
Business Development, universally I've discoveredentrepreneurs are not only goal driven and goal
that they have learned to think like entrepreneurs. oriented; they have learned to execute the process
This is what has allowed them to rise to the top ofof strategic and tactical goal setting and planning. 
their profession. Each would tell you that along theVisualizing goals, writing them down and putting
way they have learned how to think differently.  together a detailed plan for achievement provides
True entrepreneurs struggle with their businessthe confidence and motivation to prevail.  More than
opportunities for a variety of reasons. Among thejust business or operational plans, they have goals
most obvious are a lack of capital, lack ofand plans for all the important roles in their life. 
understanding about marketing, and personnel issues.They have learned early that if they arenít working
However, from my own entrepreneurial experiencetheir own plan they are probably part of someone
and knowledge of others, there are three majorelseís goals or plans.  They chart their own
reasons individuals fail in entrepreneurial ventures.destiny, embrace risk-taking leadership positions,
They tie the success of their business with their ownmake adjustments as required and prevail over a
self worth.course of time.  
They neglect to set realistic goals and plans forTolls
themselves and their business.Finally, entrepreneurs understand that there is a toll
They are not prepared to pay the price of success.to pay.  To be successful in any role in life you must
True entrepreneurs with the right thinking prevailbe prepared to pay full price one time.  There are
over a period of time.  They have learned toreally no overnight successes as an entrepreneur.  In
understand the axiom Roles, Goals, and Tolls.fact, Iëve heard it said that overnight success
Rolesgenerally takes 15-20 years.  One of the early tolls
Successful entrepreneurs, in contrast to those whothat entrepreneurs are quite often forced to face is
struggle, have learned to separate their roles in lifethe ìre-makingî of themselves that can include
from their self worth or self-identity.  Theygrowing beyond their current circle of contacts. 
understand that role performance or failure with theirSince most people tend to stay within their own
own venture is not a judgment of them as anpsychological comfort zone, they begin to lose
individual.  People who tend to equate theiridentity with the risk taker.  They are comfortable
self-worth to their composite role identity arewith the type of person who is more like them. Quite
inherently risk-adverse and look to maintain theoften the entrepreneur moves on to a different
status quo.  Being able to differentiate these twocircle of associates who understand the journey. 
identities allows them to be risk prone vs. riskStepping out, being your own person and venturing
adverse, a key ingredient to success as aninto the risk prone unknown is lonely by itself. 
entrepreneur.  Individuals who have risked failure,Consequently, there can be a newfound stress in old
experienced it, and learned from it, have not onlyrelationships.  Itís been said before that pioneers
learned how to differentiate their role identity fromget shot in the front and the back, and only through
their self-identity, they have learned the lessons ofa process of differentiating role performance from
risking and failing.  They understand that early failureself-worth, being risk prone, prevailing through
in ventures is a natural part of successful startups.adversity, sticking to your goals, and adjusting your
They are able to embrace those experiences, learnplans will you be prepared to pay the daily toll.   
from them quickly and move on.  This is critical toAn entrepreneur has much to learn in order to be
success as an entrepreneur.  They must be willing tosuccessful, including the day-to-day mechanics of
face and deal with early failures in order to prevailrunning a business, producing products, delivering
over time.  services, making money and dealing with people. 
GoalsThe biggest challenge of all is developing an
Even though much is said and written about goalsunderstanding of themselves. They come to grips
and plans being necessary for success as anwith what they want and what motivates them; this
entrepreneur, few people learn the mechanics ofsustains their willingness to prevail over the long term
successful goal setting and planning. Itís not the planagainst adversity.  Successful entrepreneurs have
but the planning that is important, and the goallearned to transform their thinking, allowing them to
setting process allows them to develop theprevail where others fail along the way.