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REASONS OF ENTREPRENEURIAL FAILURE

BY: RABIA RASHEED & WAJIHA HAQ. REASONS OF ENTREPRENEURIAL FAILURE. YOU HAVE EVER FAILED…???. FAMOUS FAILURES. HAVE YOU EVER FAILED?. DIFFERENCE BETWEEN LOSER AND FAILURE. The tale of entrepreneurship doesn't always have a happy ending, and raising money isn't always the answer. .

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REASONS OF ENTREPRENEURIAL FAILURE

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  1. BY: RABIA RASHEED & WAJIHA HAQ REASONS OF ENTREPRENEURIAL FAILURE

  2. YOU HAVE EVER FAILED…???

  3. FAMOUS FAILURES

  4. HAVE YOU EVER FAILED? DIFFERENCE BETWEEN LOSER AND FAILURE

  5. The tale of entrepreneurship doesn't always have a happy ending, and raising money isn't always the answer. you miss 100% of the shots you don't take. Wayne Gretzky

  6. REASONS OF FAILURE • No Viable Market  What if we launched a business and nobody showed up?

  7. NO VIABLE MARKET • Market Research • Talk to Your Customers • Identifying Customer Needs

  8. POOR EXECUTION • Evaluation of Your Skills • Choosing Correct Opportunities • Professional Team & Manager • Discipline is Important

  9. Too Much Leverage  Give me a lever long enough and I will bankrupt my company

  10. TOO MUCH LEVERAGE • Delay Making Investments • Delay Taking on Fixed Obligations

  11. Undercapitalizing the Business • Lack of Competitive Advantages  Never bring a knife to a gunfight!

  12. UNDERCAPITALIZE THE BUSINESS • Don’t Underestimate the Time and Capital to Reach Breakeven

  13. LACK OF COMPETITIVE ADVANTAGE • Good Location • Proprietary Technology • Cost Structure that cannot be Replicated • Create Additional Barriers with the Passage of Time

  14. Competing Head-to-Head with Industry Leaders  Better sharpen those elbows...

  15. COMPETING WITH INDUSTRY LEADERS • Sharpen Your 4Ps’ Strategies • Develop a Professional Team

  16. Picking a Niche That is too Small  Don't be a market of one!

  17. PICKING A NICHE THAT IS TOO SMALL • Specialize in Niche Market • Niche Should Support Your Business • Customers Should Not be Expensive

  18. Breakup of the Founding Team  Breaking up is hard on you -- and your company.

  19. BREAKUP OF THE FOUNDING TEAM • Handle Disagreements Carefully • Structure Agreements • Treat Every Employee Fairly • Respect Everyone’s Point of View and Interest

  20. Poor Pricing Strategy  The price is right?

  21. POOR PRICING STRATEGY • Focus on Pricing at Earliest Stages of Business Plan • Pricing Based on Cost Structure • Pricing Based on Product’s Perceived Market Value

  22. Growing too Fast  What goes up...

  23. GROWING TOO FAST • Move Progressively • Finance Fixed Assets with Internal Cash Flows • Focus on Cash Flow Rather Than Profitability

  24. HEARD STORIES OF FAILURE TO SHARE…??

  25. SOME OTHERS REPORT… • Loss of revenue • Poor business models • Management/operational issues • Lack of capital • Credit/debt issues

  26. Lack of planning • Trying to make a hobby into a business • Inexperience in managing a small business • Poor record keeping and financial controls • There is a difference in oppurtunity and new idea • Dependence too much on a single client

  27. Poor selling techniques • Inferior quality customer service

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