The smell of freedom.

Hmm.

The ability to set your own rules, take vacations whenever you want and be financially independent.

That is the goal of most entrepreneurs when they start their business. Despite this, 90% of all starts up fails in their first year. While 96% of the remaining will fail within the first 10 years.

Having your own business can be fun and equally demanding. Most people go into business because they have heard that is the fastest way to becoming financially rich. Others do so for the fun and thrill of starting up something they believe in.

Whatever your reason might be for going into business, there is every possibility that your business may not exist after 5 years.

There are dozens of reasons this might happen. Sometimes it may be due to mistakes most businesses make and often times, it may simply be due to any of the following three reasons.

There 3 Major Reasons Startup Fails:



Trying to do everything by yourself:
If you are in the middle of growing your own business, you will realize that been an entrepreneur is often the most lonely road travelled.

This is because the whole business is built around you. You are the chief CMO, CTO, sales executive, security guard and the CEO of the company.

This can often cast a heavy burden on your shoulder in trying to meet up with the demand that these positions entail. When this happens, three things are possible

You do not pay enough attention to all of this roles
You try to pay same attention to all of them and end up achieving nothing
You get burnt out.
This major reason makes most businesses fail. At the beginning of your startup, you may not have all the business plan and nitty gritty all figured out. This is why it is important to ensure that you only focus on the core of your business while outsourcing many of this task that you can.



Lack of proper understanding of the market:

Recently I was discussing with someone who wanted my advice. He has a business and resides in Lagos but according to him, his market is in Abuja. This immediately made me realize that there is a potential mishap going to happen. Except if he can successfully sell his products online, there is no way he is going to survive staying out of his market zone.

That is what happens when you do not totally understand your market. Sometimes you build products that either the market is not ready for or their product is way too ahead of the market. This can lead to frustrating starts.

Today most startup in the US moves to Silicon Valley. Their main reason is because this is where investors and budding entrepreneurs are. They can easily leverage on the close location of their network to grow their business.

What then should you do?

Create a proper framework for your market. Identify your target audience. Take your time to answer the following questions.
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