Starting your own business is no easy task. It involves a lot of hard work even before you can score a single client or earn your first bucks. It takes a steel will to decide of starting a business as there is always the risk of failure. But once you make up your mind to say good bye to that 9 to 5 job, all that freelancing works and decides to be your own boss, you start your own business. And guess what; You FAIL. Yes, you read that right. It is very likely that you will fail in your first business endeavour. The truth about entrepreneurship is that you’ll be losing money half the time. Every businessman, from Steve Jobs or Bill Gates to Richard Branson or Walt Disney, have faced failure I their careers. Almost half of the start-ups funded by venture capitalists fail after their fifth year in operation.
The big question that now arises is if all start-ups face failure, why don’t they learn from others mistake. The answer is; we don’t know why. According to a report by StatisticBrain, the number reason for a start-up to fail is emotional pricing of the products by entrepreneurs i.e. they price their product higher than is required to survive in the market and refuses to adjust to the market conditions. Other top reasons include No knowledge of pricing, Lack of planning and No knowledge of financing.
What this means for you then? It is simple. If you look at the above reasons, you will yourself understand that if those entrepreneurs have been a little bit more prudent and consistent, they would have made it. The fact is, you will fail when you start and that will be great for you. Once you fail, you will be able to look back at the mistakes you made and will learn and be more prepared for the next time. There is no substitution for practice and experience. No Phd will enlighten you the way your failure will, so take it as a stepping stone for your future. Nobody makes there first million dollars without losing something (remember The Social Network). The sooner you start, the sooner you will fail and the better it will be for your future.