Why Entrepreneurs Fail

5 + years working with professionals in Businessentrepreneurs are not only goal driven and goal
Development, universally I've discovered that theyoriented; they have learned to execute the process
have learned to think like entrepreneurs. This is whatof strategic and tactical goal setting and planning.
has allowed them to rise to the top of theirVisualizing goals, writing them down and putting
profession. Each would tell you that along the waytogether a detailed plan for achievement provides
they have learned how to think differently.the confidence and motivation to prevail. More than
True entrepreneurs struggle with their businessjust business or operational plans, they have goals
opportunities for a variety of reasons. Among theand plans for all the important roles in their life. They
most obvious are a lack of capital, lack ofhave learned early that if they aren’t working
understanding about marketing, and personnel issues.their own plan they are probably part of someone
However, from my own entrepreneurial experienceelse’s goals or plans. They chart their own
and knowledge of others, there are three majordestiny, embrace risk-taking leadership positions,
reasons individuals fail in entrepreneurial ventures.make adjustments as required and prevail over a
They tie the success of their business with their owncourse of time.
self worth.Tolls
They neglect to set realistic goals and plans forFinally, entrepreneurs understand that there is a toll
themselves and their business.to pay. To be successful in any role in life you must
They are not prepared to pay the price of success.be prepared to pay full price one time. There are
True entrepreneurs with the right thinking prevailreally no overnight successes as an entrepreneur. In
over a period of time. They have learned tofact, I‘ve heard it said that overnight success
understand the axiom Roles, Goals, and Tolls.generally takes 15-20 years. One of the early tolls
Rolesthat entrepreneurs are quite often forced to face is
Successful entrepreneurs, in contrast to those whothe “re-making” of themselves that can include
struggle, have learned to separate their roles in lifegrowing beyond their current circle of contacts. Since
from their self worth or self-identity. Theymost people tend to stay within their own
understand that role performance or failure with theirpsychological comfort zone, they begin to lose
own venture is not a judgment of them as anidentity with the risk taker. They are comfortable
individual. People who tend to equate their self-worthwith the type of person who is more like them. Quite
to their composite role identity are inherentlyoften the entrepreneur moves on to a different
risk-adverse and look to maintain the status quo.circle of associates who understand the journey.
Being able to differentiate these two identities allowsStepping out, being your own person and venturing
them to be risk prone vs. risk adverse, a keyinto the risk prone unknown is lonely by itself.
ingredient to success as an entrepreneur. IndividualsConsequently, there can be a newfound stress in old
who have risked failure, experienced it, and learnedrelationships. It’s been said before that
from it, have not only learned how to differentiatepioneers get shot in the front and the back, and only
their role identity from their self-identity, they havethrough a process of differentiating role performance
learned the lessons of risking and failing. Theyfrom self-worth, being risk prone, prevailing through
understand that early failure in ventures is a naturaladversity, sticking to your goals, and adjusting your
part of successful startups. They are able toplans will you be prepared to pay the daily toll.
embrace those experiences, learn from them quicklyAn entrepreneur has much to learn in order to be
and move on. This is critical to success as ansuccessful, including the day-to-day mechanics of
entrepreneur. They must be willing to face and dealrunning a business, producing products, delivering
with early failures in order to prevail over time.services, making money and dealing with people. The
Goalsbiggest challenge of all is developing an understanding
Even though much is said and written about goalsof themselves. They come to grips with what they
and plans being necessary for success as anwant and what motivates them; this sustains their
entrepreneur, few people learn the mechanics ofwillingness to prevail over the long term against
successful goal setting and planning. It’s notadversity. Successful entrepreneurs have learned to
the plan but the planning that is important, and thetransform their thinking, allowing them to prevail
goal setting process allows them to develop thewhere others fail along the way.
confidence to take risks and fail. Successful