by Dr. D Ivan Young, ICF Master Certified Coach

If you feel like you’re a failing entrepreneur, or you think you’re already a failed entrepreneur, I have news for you. That’s part of being an entrepreneur.

But this doesn’t have to be the end for you.

Starting a business was your life’s desire. You don’t quit on that after facing a few setbacks.

So you’ve had ups and downs. You’ve drained your resources and energy. But even if you’re at the point where you have to decide between buying food and buying gas, there’s still time.

I promise you, there is a bright side to being a failing entrepreneur.

For starters, you had a vision, you planned it out, and you took the steps you needed to take to get there. That’s more than most people ever do.

Now it’s time to prove you have what it takes.

So what does it take to transform from a failing entrepreneur into a thriving business owner?

First, let’s look at why entrepreneurs fail.

What Creates Failing Entrepreneurs?

There are a lot of pitfalls that produce a failing entrepreneur.

1. Not doing your research.

When you’re starting a business, you have to know who you’re serving, what they need, and why they need it.

Is there a realistic demand for what you have to offer?

It’s still not enough to know that there’s demand. You have to determine what makes your business unique and why it could be the best choice for your target customer.

2. Giving your customers too many options.

Let me share with you a positive example of a sauce brand that realized the importance of focusing on their strengths.

The business initially offered ten different sauces, but customers found it hard to decide which one to buy. The variety was causing their best products to underperform. Additionally, the shelf life of the sauces was becoming an issue, causing them to lose even more money.

The company recognized these challenges and narrowed down its offerings to four sauces.

By doing so, they were able to fine-tune their focus, concentrate on what they did best, and improve sales before it caused them to go out of business.

The lesson here is that as an entrepreneur, you must continuously reassess your business strategies and make necessary changes.

It’s better to master a few things than to try to excel in everything and fall short.

Whether you’re selling a product or offering services, by aiming to help your customers, you’ll earn their trust and loyalty. This approach will help you build a successful business and make a positive impact in your industry.

3. Not knowing when to pivot.

Entrepreneurs MUST learn to pivot. Starting a business requires you to accept that things will not always go according to plan.

Giving your strategy time to work is important. But if it’s rapidly draining your resources and keeping you up at night without yielding any results, it’s time to pivot.

It pays to consistently revisit your strategies and eliminate procrastination. Putting off critical tasks only delays your success while draining your finances unnecessarily.

Take action to avoid holding on for too long and becoming a failing entrepreneur.

4. Overestimating your resources.

As an entrepreneur, it’s easy to get caught up in the excitement of starting a business. But it’s crucial not to overestimate your abilities and resources. This can be a grave mistake that can take you from aspiring business owner to failing entrepreneur.

To avoid this, you need to do your research.

Consider the required investments, expenses, and the burn rate of your money. You should also have a contingency plan in place in case of unforeseen circumstances.

When estimating the time required to make your business work, be sure to double it.

A personal experience that highlights the importance of these steps was when I decided to flip a house with a relative. Unfortunately, I put too much trust in their expertise and didn’t do my own due diligence.

This led to significant financial loss and the loss of a relationship.

If you want to be successful, you need to plan for both the best and worst-case scenarios. This is especially important if you can’t afford to lose what you’re investing.

By taking these steps, you’ll be better equipped to navigate the challenges that come with starting a business. You’ll increase your chances of success exponentially.

The Effects of Failure on Entrepreneurs

It’s not surprising that some failed entrepreneurs progress to form successful businesses, yet others fail again and again.

Not everyone will benefit from being a failed entrepreneur. Success in a new venture is greatly impacted by your ability to learn from previous failures and make necessary changes¹.

If you’re a failing or failed entrepreneur, the good news is you’ve already fought half the battle.

What I mean is that most people won’t ever start their business because of their fear of failure².

But you did.

You tried, and maybe you failed. Odds are, failing was your worst fear. But failing doesn’t mean that “YOU” are a failure.

Now that your fear of failure has come true or is coming true, you have a unique opportunity. Your mistakes don’t define you; how you bounce back from them does. When your worst business fear comes true, you can only improve from there.

You get to choose whether your failure becomes a lesson that you learn from or a mistake that haunts you forever.

So why are some failed entrepreneurs able to move on and succeed while others never take a chance again?

The Difference between Failing Entrepreneurs Who Succeed and Those Who Never Move On

If you have an entrepreneurial spirit, odds are you’ll want to try again. But does that mean you will?

Many entrepreneurs pursue a new business venture and find success. Then there are those who never recover from being a failed entrepreneur and either fail more or never try again.

So what makes the difference?

Embracing the grieving process can help failing entrepreneurs make sense of their shortcomings and find a way forward³.

In this stage, you can benefit from surrounding yourself with supportive people and taking time to process your emotions.

The healing process usually begins with self-reflection and making sense of what happened and what it’s meant to teach you.

Taking time to reflect and analyze what led to your failed entrepreneurial experience can help you learn more about yourself and what you need to do differently. This process allows you to identify your strengths and weaknesses.

Even if you need to make changes, you probably did some things right.

Now you have the whole picture, so you can expand upon what you did right and improve upon what you did wrong.

You’re not a failed entrepreneur if you make the decision to learn from your experience and move forward with the knowledge, skills, and resources you’ve acquired.

What You Can Do Today – From an ICF Master Certified Coach Who’s Been There

I started my coaching practice with no office and little financial stability.

I met with clients wherever I could, always prioritizing their convenience. However, I knew that I needed an office to be taken seriously as a coach.

When a friend offered to share an office with me, I jumped at the chance. But the rent was $500 per month, which I could barely afford.

To be honest, I was afraid I wouldn’t be able to pay my rent and the rent for the office too.

But, if I didn’t rise to the occasion, my dream of becoming a successful coach could be crushed. I refused to let these challenges stop me from pursuing my dream. Instead, I worked hard and made sacrifices to pay the rent and turn my dream into a reality.

In the first year, I faced many challenges and came close to becoming a failing entrepreneur several times.

But I turned my mistakes into lessons and refused to give up. I used those struggles as an opportunity to learn and grow. Today, I’m proud to say that I’m one of the most successful life coaches in the United States and globally.

I started with nothing and built a flourishing coaching brand.

I’m able to relate to my clients’ struggles and help them achieve their goals, just as I did. So, if you’re facing challenges in pursuing your dreams, know that it’s not easy, but it’s possible.

With hard work, determination, and a willingness to learn from your struggles, you too can turn your dreams into a reality.

The lessons I learned during that challenging time have become invaluable to me and to my clients.

1. Revisit your goals, purpose, and strategies consistently.

If you’re a failing entrepreneur, or on your way to becoming one, ask yourself what you’re doing, what you want to do, and what you need to do.

Do you really need an office space now? Would moving to a smaller office save money and not harm your credibility?

Is your current strategy helping you make progress after a reasonable amount of time?

Are your goals still in alignment with what you value?

2. Figure out where you can improve your skill set and position.

Many failing entrepreneurs fail to ask themselves if they’re as good as they think they are at what they do.

You might be underestimating yourself, or you might be overestimating your abilities. Either way, you have to figure it out so you can learn.

It’s time to focus on how you can enrich your skills and knowledge, as well as how you can improve as a person.

If you focus on being a value add to your clients and those who engage with your business, you won’t be a failing entrepreneur for long.

So if you’ve failed as an entrepreneur, revisit what went wrong, what went right, and what you can do here and now.

You’re closer to success than you think.

And if you need extra support from someone who’s been through it, book a call with me. If we’re a good fit we can work together so you can gain the clarity you need to confidently move forward and leave your failing entrepreneur persona behind.

Contact Dr. D. Ivan Young

Bio – Dr. D Ivan Young is an expert on human behavior and relationships. He’s a Master Credentialed expert on personality type, an ICF credentialed Master Certified Coach, a Certified Professional Diversity Coach, and a National Board Certified Health and Wellness Coach. Dr. Young is also a member of the prestigious Forbes Coaches Council.

3. https://link.springer.com/article/10.1007/s11365-020-00655-0