Why Businesses Fail


  • 12.5min
  • business
  • Aug 13 2018
Watch the Video

For those of you that don’t know me, I’ve been around business my entire life. My grandpa was an entrepreneur, my parents are entrepreneurs and for the past thirteen years I’ve been running a very successful business. We have a couple hundred licensed agents with our brokerage across Canada and we’re expanding down into the US.

The topic for this Momentum Monday is why I think most businesses fail. These aren’t the only reasons but these are, for the most part, the reasons I believe – within a two or three-year period (some only two or three months) – businesses go under.

Five Reasons Businesses Fail

  1. There’s not a serious five-year commitment.

    You need a long-term vision if you want to be successful in business. There is no such thing as get-rich-quick.

    Are you prepared to weather the storm? Are you prepared to go through the dark days in order to get to the profit?

    Don’t expect to be turning profit your first two or three weeks in business. A lot of people go into business with a short-term vision, only thinking about making money and replacing their current job. People with short-term visions are the first to abandon ship. They’re the first to give up on the dream. They’re the first to switch companies. We see it all the time, people who don’t have a long-term vision are the people that often blame their company or other people when they quit but they never blame themselves.

  2. Their mental game never gets in a peak state.

    How’s your mindset? Are you focusing on personal growth
    ?

    Many entrepreneurs spend so much time working on their business that they don’t have time to work on their mindset. Entrepreneurship is not your typical nine-to-five job – you have to be thinking differently. If you’re not maximizing your personal growth, if you’re not focusing on having a strong morning routine, if you don’t understand what it takes, there will be challenges. In order for you to, not only embrace the challenges, but to move through the challenges you’re going to have to get your mindset to the level that it needs to be at. I think it was Albert Einstein who said:


    “You can’t get out of the problem with the same level of thinking that you went into it with
    .”

    As an entrepreneur, it’s important that you are around good people and reading good books. Eliminate the negative people in your life. If you’re getting drained by people in your life, if things are sucking energy out of you that’s just taking away from you and your business.

  3. There’s a lack of teamwork in the home.

    You can’t do anything without teamwork in the home. You and your partner need to be each other’s number one fans. You don’t always have to a hundred percent agree on everything, but you have to be a hundred percent aligned. When people aren’t in sync at home, I see a lot of the effects in business. It’s a team effort, you ought to be going out as a unit. You want to be meeting people, prospecting people and running things as a unit. You might have different roles, but you have to be on the same page.

  4. They don’t run their business like a business.

    Are you running this like it’s your multi-million-dollar business? Or, are you running this like a thousand-dollar hobby?

    It will start to pay you at the level that you treat it. Are you treating it seriously? Do you have a dress code? Are you punctual? How’s your communication? How’s the tracking of the business? Are you just throwing things against the wall and seeing what sticks, or, are you tracking your progress, trying different things and recording it to see what’s working?

    If you want to earn money doing what you love and enjoy, you need to treat it and run it like a business.

  5. They fail to recognize the magnitude of moment.

    When starting a business, they get all fired up, they do all the research, they buy the equipment, and leave their job but they miss a moment. They come into the business focused on all the wrong things: I finally have no boss. I’m finally going get paid what I’m worth. I’m going to achieve all of our family’s goals and dreams. In the midst of it, they fail to recognize the magnitude of the moment. They fail to understand that this is, for many people, their last shot at doing something big.

    How many opportunities do you get to go back into business for yourself?

    It takes time, energy, resources and commitment. There’s your family and so many other things to consider, but you’re finally in business and this is your shot. So many people just don’t take it seriously and miss it. They fail to recognize that this could be their one shot at doing something big. Nobody else in their family has been able to get to this point, change the cycle and finally have the life that they’ve always dreamed of. For so long, you never got the break that you were looking for but it’s sitting right in front of you. You have all the tools, and, in many cases, you have the system, mentorship and the opportunity.

It’s 2018. this is the best time to be an entrepreneur. There are so many people wasting their time and opportunities. Look, success is happening with or without you. People are becoming successful in business every single day. Businesses are thriving, growing and making money. The only question is, who’s the next person to step it up and get it done. Who’s the next person to take their family from where they are today to where they deserve to be.

Thirteen years ago, I was a baker at a restaurant making $11 an hour. If I earned a thousand-dollar paycheck in a two week pay cycle I was fired up. Eventually, I traded in my cook uniform, and started with a business that had a proven system. I could come in and run the system and the system would start to run my business. Years later, we have a little business that pays us over three-quarters of a million dollars a year. I don’t say that to impress anybody. We don’t have a ton of debt, we travel the world and I get to work every single day with people that I choose to work with, my family, my friends, my sister, my wife. It’s unbelievable but that’s the business and life that I wanted thirteen years ago.

What are you willing to fight for? What do you want? What does buying your life back mean to you?

Don’t miss it. You can’t hold on to your excuses forever. Most people are too busy being broke, they don’t have time to get wealthy. Don’t quit on your dream. Make long-term plans to be successful in business and sink your teeth into it.