The Reasons For The Failure Of Top Ten Entrepreneurs

If you are an entrepreneur, you have not yet suffered.

If you haven't made the following mistakes, you'd better try harder.

One

2. failed to make full use of the company.

Heidi Ganahl, the founder of Camp Bow Wow, a pet service company with 200 stores, said: "if I can do it again, I will invest three times the amount of money before.

At that time, I didn't know how much money needed to start a franchise.

Now, in retrospect, if we have more capital, we can be more efficient in building systems, processes and developing sales strategies.

It is said that Camp Bow Wow is the largest franchised marketing shop operated by women in the world so far.

3. you have to do everything.

Allstate Insurance's Lara Laura (Laura Harris) said: "my biggest failure is to personally participate in everything.

My first vacation was on the beach of San Juan, and I was very disappointed in my business failure.

After coming back, I quickly reorganized my company and designed the business process. I no longer control every link.

I define the functions of every job in the office, cross training the office staff, and do spot checks to ensure that the work is carried out smoothly.

Now even if I'm on holiday, I can take an active part in my business.

4., the expansion of company personnel is too fast.

The CEO Joshua Steimle of MWI, an Internet marketing company, founded its first company when he was in college. He committed a mistake that entrepreneurs often make - redundancy.

"I hired a CFO and a vice president of sales, and gave them a 10% share.

These two hiring mistakes have dragged down the business when the company is the most vulnerable. I should hire an ordinary person to manage sales.

In the end, he made CFO leave, but in order to get back the 10% share, he paid a heavy price. After a few years, he had to sell the company because of a loss. He had to remember his valuable experience. He should hire slowly and quickly.

5. showy extravagance.

In 1999, Cheney Yerushalmi (Cheni Yerushalmi) opened online game website Zoomgo. He and his partners invested in office buildings and expensive furniture to cater for the needs of company customers and advertisers.

A year later, the company began to struggle with cash supply and struggle for survival.

His lesson: "control spending, and don't lock yourself in commitments that you can't afford."

In order to make a living, Jeremiah had to rent the company to other entrepreneurs.

In desperation, he founded Sunshine Suites, which mainly provided offices for start-up companies in Manhattan.

6. over commitment and no delivery.

In 2008, Crowd Spring co-founder Mike Kimbarovsky (Mike Kimbarovsky) and Mike Samson founded the creative crowdsourcing project for the global market.

The partners said: "we are e-commerce websites, we can not cope with our traffic or we can not meet the needs of customers".

You can imagine how disappointed the client will be.

They ended up working 7 days and 24 hours a week to rewrite everything, and took several measures to correct them.

Kimbarovsky and Samson realized how dangerous it is for a network company to fail to deliver to customers according to their promises.

They also learned to be pparent about their failures. The Crowd Spring team gave a heartfelt apology to customers and explained the trouble they had encountered, thereby establishing trust among those customers and being respected by customers.

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7. growth is too fast.

Coppy Holzman, founder of Webvan.com, learned a lot from the rapid rise of the grocery store he ran in the late 90s and then went bankrupt quickly in Coppy.

Holzmann said that his partners convinced him that they could scale up quickly and combine WAL-MART with FedEx.

"Attacking too many markets at the same time is the root cause of our failure," he said.

He took a slow and steady growth strategy for his new industry, high-end online charity auction website.

He said: "making our core business satisfy 100% of our customers is our priority problem, which is more important than conquering the whole market".

8. sales representative.

CEO should also be involved in sales.

Scott Stropkay and Richard Watson, co-founder of product and service innovation consulting firm Essential, are struggling in business.

They hired a first-rate professional salesperson, Stropkay, who said, "we underestimated the knowledge we need to sell what we are running.

We do not know that a non professional worker does not know how to use our skills to impress customers.

In the end, they sacked the salesperson, and Essential's partners and boards began to take charge of sales, thereby creating the company's 2010 glory.

Stropkay says the biggest lesson he learned is that if you want to compete with big companies with sales advantages and marketing teams, you need to make full use of your personal experience in the sales process and honor the sales staff's commitment to customers, which will greatly contribute to the project.

9. supplier relationship management is not good.

Monique Hayward relies on management teams and other restaurant owners' opinions to run their own restaurants, cafes and bars.

As a result, when his business began to slide, it became an unforgivable mistake to cooperate with a large company. She could not pay the debts. When Hayward no longer issued a new order to a company, the company even violated the payment plan and forced her to pay back the debt.

She recalled that it was a tragedy at that time.

After that, Hayward began to buy in the local farmers' market and small wholesalers.

"Because we have no credibility with food companies, we must streamline our inventory management," he said.

We can no longer hide behind the invoice, so we began to manage the inventory of drinks every day and soon realized a reduction in expenditure.

10. destroy customer relationship.

Grasshopper Group, an online payment service company, founded Chargify in its first year with free mode.

In October last year, the company sent an e-mail to all customers to announce that their free period has ended. In order to continue to receive services, customers need to pay $99 per month.

Users expressed their dissatisfaction and negative news followed.

CEO David Georgi (David Hauser) explained the reasons for the rise in service prices in a blog entitled "how to destroy the trust of customers in a day". At the same time, the company was not good at communicating with customers and apologizing to customers.

He wrote: "we have destroyed your trust in us.

It took us a long time to build these trusts. Now we may never find such trust again.

We learn more from this mistake than we have learned in the past. We will use our knowledge to change the way we think about Chargify. "

Have you made the 10 mistakes or other mistakes we didn't notice? What have you learned from it?