Why do people stop when starting a business?

Why do people stop when starting a business?
1. Poor Execution
When you're the boss, the only place you should point fingers is at the mirror.
As I have described elsewhere about business ideas and opportunities, crisp execution—rather than a clever idea— is vital to the success of new businesses. It stands to reason, therefore, that poor execution is the downfall of most startups that go bust. There are several ways you can avoid execution failure. First, you should conduct an honest evaluation of your skills and only pursue opportunities that are aligned with your strengths. Entrepreneurs who are blinded by greed or arrogance are more prone to getting in over their heads. It's also wise to surround yourself with talented people who aren't afraid to speak up when you're headed off a cliff.

Companies with inept leadership usually fail in the first year or two, but even established companies can stumble badly when they outgrow the capabilities of the founding team. Bill Gates led Microsoft from inception to its current position as one of the largest and most successful companies in history, but this is seldom the case. As a founder, you need the discipline to know when to hand over the reigns to a professional manager who can take your business to the next level.

2. No Viable Market
What if we launched a business and nobody showed up?
Each day, entrepreneurs from the "build it and they will come" school of business invest their money in a cool idea with the hopes that customers will magically appear once they open the doors. All too frequently, these hopes turn out to be in vain. History is replete with ventures that crashed and burned because the founders spent all of their time and money developing a product without bothering to consider how to attract customers. Even worse, many did not really understand what customers valued and were willing to pay for. (Remember the "dot bomb" era of the not-so-distant past?)

It's imperative to research and validate the market before you launch your business. Talk to prospective customers and find out what they really need. Chances are, you will end up with a much more compelling offering than what you initially dreamed up on your own. Remember, find the customers first, then look for a solution.

3. The Owner gives up too quickly
Any new business will be lucky to break even in their first year. Many people new to business often assume that they are going to make a fortune within 12 months. In reality less than 80% of new start-ups make a profit in their first year.

4. Advertising
There is zero point in doing a single leaflet drop to all your potential customers. There is no point in doing a single advertisement in your local newspaper. Advertising is all about repetition. Many of your potential customers will not buy your products until they have seen your marketing material at least half a dozen times.

5. Branding
Every single piece of your company has to scream out your brand including your brochures, websites, delivery vans and the uniforms that you and your staff wear.

6. Ability to close the sale
This is really an art form in itself. Some people are naturally good closers but others have to learn by reading and studying the art of closing a sell. The more you practice the better you will become.

7. Location
Location is very important to the chances of your businesses survival. Often you will have to pay more for a decent location but it can make the difference between just getting by and turning a decent profit.

8. Ability to get on with other people
We all know that we have to treat our customers with respect but what about our suppliers. If you do not pay your suppliers on time they will start quoting you higher prices. If you are rude to them they might stop doing business with you altogether.

9. Lady Luck
Some people are really unlucky; there is no getting away from this. Just hope and pray that Lady Luck smiles at you, especially in the first year.

10. Demand and USPs
Small businesses often overestimate the demand and usually have no unique selling proposition built in to their products. If people only ever need to buy one of your widgets and you make millions, chances are that you are heading for a point of no return.
Examine all the points above. If you feel that you have an answer to most of them then you are ready to take the plunge and start your own business.