Becoming an entrepreneur is usually the first step to many business men’s success. An entrepreneur is “a person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so” or “a promoter in the entertainment industry”(Collins, 2016) according to Webster dictionary. People have different reasons and motivations for becoming an entrepreneur but the biggest reason is the opportunity to make more money. The very first thing to becoming an entrepreneur is to find a reason or motivation to start a business. If you have none then you are likely to fail and back out whenever the going gets tough. Eighty percent of entrepreneurs fail within the first year of starting up, Forbes gives five
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The customers are the ones who will be buying your product or service and if you aren’t asking them what you can do to make it better or what problems they have with it then you will never find out what the market likes or dislikes about your product. “Your customer holds the key to your success deep in their pain, behavior, dreams, values and the jobs they are trying to accomplish”(Wagner, 2013). The next reason Forbes gave as to why companies fail is that there is not much if any differentiation between one company and the rest of the market. Every company needs something to set them apart from the rest of the businesses in their market or there is no reason for customers to go to them for a product or service versus their competition. Everyone needs a kind of uniqueness to them or they will just be fighting for the bottom scraps of the market hoping enough of the leftover customers stop by and give them enough money to just scrape by(Wagner, …show more content…
If your leader or founder does something really bad and everyone knows or finds out about it, it will hurt the company a lot. One example is when Jared Fogle from Subway. When he was arrested and sentenced to prison for many different charges the whole world knew and many people protested against or stopped eating at Subway. That hurt the company very bad and if it wasn’t already a multi-billion dollar company that could afford to take a hit it would have been one of the eight out of ten that fail(Wagner, 2013). The last reason for entrepreneurs failing in their first year is finding out how to run your company with spending the minimum amount of money to find out mistakes or things wrong with your company. A lot of the time what happens is entrepreneurs spend too much money starting up a company or on marketing and realize that they could have saved the money or spent it more wisely and by that point they will have spent all the money they had and not be able to afford to dig themselves out of the hole they put themselves in(Wagner, 2013). To summarize everything, you must know what you are doing in order to become an entrepreneur. If not you will become one of the eighty percent of businesses that fail after working in the market for one
The customers are the ones who will be buying your product or service and if you aren’t asking them what you can do to make it better or what problems they have with it then you will never find out what the market likes or dislikes about your product. “Your customer holds the key to your success deep in their pain, behavior, dreams, values and the jobs they are trying to accomplish”(Wagner, 2013). The next reason Forbes gave as to why companies fail is that there is not much if any differentiation between one company and the rest of the market. Every company needs something to set them apart from the rest of the businesses in their market or there is no reason for customers to go to them for a product or service versus their competition. Everyone needs a kind of uniqueness to them or they will just be fighting for the bottom scraps of the market hoping enough of the leftover customers stop by and give them enough money to just scrape by(Wagner, …show more content…
If your leader or founder does something really bad and everyone knows or finds out about it, it will hurt the company a lot. One example is when Jared Fogle from Subway. When he was arrested and sentenced to prison for many different charges the whole world knew and many people protested against or stopped eating at Subway. That hurt the company very bad and if it wasn’t already a multi-billion dollar company that could afford to take a hit it would have been one of the eight out of ten that fail(Wagner, 2013). The last reason for entrepreneurs failing in their first year is finding out how to run your company with spending the minimum amount of money to find out mistakes or things wrong with your company. A lot of the time what happens is entrepreneurs spend too much money starting up a company or on marketing and realize that they could have saved the money or spent it more wisely and by that point they will have spent all the money they had and not be able to afford to dig themselves out of the hole they put themselves in(Wagner, 2013). To summarize everything, you must know what you are doing in order to become an entrepreneur. If not you will become one of the eighty percent of businesses that fail after working in the market for one