Statistics published in 2019 by the Small Business Administration (SBA) reveal, that “About twenty percent of business start-ups fail in the first year. About half of the businesses fail within five years. By year 10, only about 33% survive”. Every time I come across this kind of data; I feel bad about what most of the entrepreneurs could have been through.

I can just imagine the burden and suffering which an entrepreneur must bear while wrapping up what they aspired to build. Based on my  experience I can say that it’s not those businesses fail, it’s that the entrepreneurs or the individuals are not able to achieve their goals. Though there can be more than what we can see and understand, here are the five key elements, which when left unattended, could increase the chances of business owners quitting the business in pain.

1. Importance of Market research – For some or other reason, people are in a rush to start and turn their million-dollar idea into reality. Apart from being in a rush, cost considerations also play a key role in discouraging an entrepreneur from taking a shortcut and avoiding them from writing a business plan. Now, you may also be thinking that did Steve Jobs, Bill Gates, Mark Zuckerberg, or Jack Ma start their super successful businesses after writing a business plan? No, they did not. One such reason which I can think is that they were in their respective markets when the competition was a lot less than what it is in today`s time. Nowadays, markets are so dynamic and competitive, so it`s imperative to for a business owner to do a thorough research on market size, customer base, capital needs, product acceptability and other key areas. If a business owner disregard importance of this crucial task, he the dependability on luck to reach business goals can increase by manifolds.

2. Value of having a right team – If someone thinks that a one-person army can fight a battle at different fronts and turn up a winner, then I assume that the probability of such a success rate could be less than 2 in 100. Sometimes, an entrepreneur might not be aware of the benefits of hiring the right talent, and other times it can be challenging for them to find the right people. According to an article published on indeed.com, the number one challenge which a small business owner face is to find and hire the right people. So, not having a right team can magnify the risk and may lead to undesirable consequences.

3.   Value of Training- It’s not that every entrepreneur who left their business, left it at the starting phase. Some were forced to shut their shop when they were growing. Apart from many other factors which contributed to such a decision, one most crucial factor is training. The training of the entrepreneur and his team can be seen as the red blood cells of the business. According to Ben Horowitz in his book, “The hard things about hard things”, the productivity of the employees is directly proportional to the training they get with each increment in their role.

4. Importance of Choosing Right business – It is not that only factors beyond control contribute to the failures and success of any business or individuals, lack of Self-awareness contributes to struggles. People have tendency do what others said they are to do, or they start doing that what others are doing. Their inability to assess their skills, abilities, values, and interests, encourages them to take an Impulsive decision or intuitive making approach in the selection of the business. Apart from financial repercussions being in wrong business can also lead to emotional burnout and physical health problems.

5.  Effects of Unmanaged stress – Imagine someone who is having a tough time managing its show, what emotions and feelings he or she will be experiencing managing employees, tough customers and suppliers, and suffering poor financial health. It could not be a desirable state of mind, except for some who might enjoy this entrepreneurial high. Scientific research proves that when we experience stress, our probability of making better decisions is reduced by 70 percent. It might not surprise you, what could be the quality of decisions taken by an individual who is stressed beyond a point. In a blog published in NCFA Canada, 34 percent of entrepreneurs–4 percentage points more than other workers–reported they were worried. And 45 percent of entrepreneurs said they were stressed, three percentage points more than other workers.

With these possible explanations to the entrepreneurs quitting their journey or taking a different path, I can say that life teaches us lessons, and sometimes we do learn from them and change ourselves, sometimes, not always. Is it necessary to first commit mistakes and then take corrective action?

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