I have personally advised, worked with and mentored more than 1,000 entrepreneurs, CEOs and several billionaires. There is a common and consistent thread that cuts through all of them – They make similar mistakes, fall into familiar traps and share common traits, no matter where they come from, what their background, how big they are and which industry they compete in. Almost all of them share these two qualities:
Excitement about a business idea or opportunity
Optimism about future success
Entrepreneurs tend to be irrationally optimistic about their Business venture or idea. This is why some of them succeed and are able to keep going no matter what the odds. This is also the main reason why many of them fail!
Entrepreneurs often get so giddy that they lose perspective and get blindsided by their optimism. I have observed 7 common traps they fall into. I call these traps – the 7 Deadly Sins of Entrepreneurs!
They create a business based on an untested idea
They develop a product without a customer
They build a business without a business model
They don’t build a strong team
They do not learn and adapt quickly
They try to get bigger without getting better
They don’t differentiate themselves
Most businesses fail due to poor strategy, leadership or execution. According to a study by Bloomberg, 8 out of 10 businesses fail within 18 months. This is both staggering, unfortunate and avoidable.
The bottom line is this – the staggering failure rate is the inevitable consequence of the fact – most Entrepreneurs begin their journey without the right skill sets, without proper guidance, perspective or mentorship.