- About 90% of startups fail – but only 10% fail because of the idea itself. Most fail due to execution, team, or financial issues. (CB Insights, 2021)
- Cash flow problems cause 29% of startup failures. Many founders underestimate how much money they need to survive the first years. (Small Business Trends, 2020)
- 35% to 42% of startups fail due to a lack of market need – meaning even a great idea fails if there aren’t enough paying customers. (CB Insights, 2021)
- 50% of small businesses don’t survive past 5 years due to poor management, lack of discipline, or burnout among founders.(U.S. Bureau of Labor Statistics, 2020)
- Founders who ignore feedback have 2x higher risk of failure. Not adapting to customers or the market is a common reason startups collapse. (Harvard Business Review, 2019)
The truth is, ideas are only as good as the people who execute them – a mantra I learned first-hand from Emmy Nominated Creative Director (and mentor) Ron Gibori.
Having an idea, no matter how smart or unique or interesting, isn’t enough. The difference between success and failure has very little to do with the actual idea, and far more to do with the people who bring that idea to life.
Execution is everything.
Entrepreneurship, then, tends to be a question of habits. Failure isn’t so much a gamble you’re taking on your idea, but rather the result of the way you choose to execute. Nobody sits down and comes up with a perfect idea. Nobody starts at square one with a flawless concept. In the end, success is what comes after an endless stream of pivots, adjustments, good habits, and collaborative efforts.
So, why do so many entrepreneurs fail? It’s not because of their ideas (although, come on, sometimes an idea just doesn’t have legs).
No, they fail because:
1. They don’t know what true hard work actually looks like.
Gary Vaynerchuk has said in multiple interviews that he lacks belief in entrepreneurs that come from privileged backgrounds, or graduated from an ivy league school and now want to play the game of starting a business.
And do you know what? As a kid who grew up extremely privileged, I actually agree with him. Having been raised in that sort of environment, there’s a lot to be thankful for. There’s also a lot you miss out on — the feeling of having to fight for what you want out of life being one of them. That was something I had to teach myself.
Entrepreneurship isn’t like school.
It doesn’t give you clearly defined assignments, and it doesn’t give you tangible measures for success. Those are things you have to give yourself. Most entrepreneurs lose because of this reason and this reason only: they can’t define their own measures of success.
And not only do they struggle to define those measures, but they are shocked by the amount of effort it actually takes to achieve them.
2. They don’t know how to be “patiently impatient.”
I came up with this phrase recently, and it sums up so perfectly this concept of balancing ambition with patience, hunger with contentment. Too often, people think it’s one or the other: you’re either grinding your face off, or you’re slacking.
You’re awake or you’re asleep.
That’s just not true.
The balancing point is to be “patiently impatient.” You have to be aware that great things take time, and to be willing to walk that long road, while at the same time be impatient enough to never accept the status quo. You have to be able to celebrate the wins, yet always be pushing yourself toward the next one.
3. They try to chase what’s popular, instead of what they’re good at.
It astounds me how many people I see trying to start social media apps with absolutely no background or true in-the-trenches knowledge of social media.
That logic is no different than someone deciding to open a taco restaurant simply because they love tacos. The truth is, they don’t know a thing about running a profitable restaurant.
As an entrepreneur, your question should never be, “What do people want?” Your question should be, “What do I know better than anyone else, and what is my market missing that people would want?” True knowledge of your craft will always go farther than someone who hops into an industry for the popularity factor.
Don’t chase trends. Instead, invest heavily in yourself and the things you are the best at.
4. They go at it alone.
Another lesson learned from my mentor, entrepreneurship is not a solo sport.
And the ones that struggle the most tend to be the most hesitant to share with others — whether that’s the workload, or equity, or even their network.
Nothing great is built by yourself. Even if you maintain complete ownership over whatever it is you’re building, you are still going to need other people. You’re going to need someone to design what you’re building, or develop it, or source it, or manufacture it. And to treat others as commodities instead of valuable partners is to set yourself up for failure before you’ve even begun.
5. They don’t know what they don’t know.
The number one cause of failed entrepreneurs has to be this — not knowing what you don’t know.
Especially if you’re strolling up into a new industry, this part of the equation isn’t just crucial; it’s a matter of life and death. You cannot approach building your business with the mentality that you’ve got it all figured out, because you don’t. Even if you have years upon years of industry experience, the moment you think you’ve got all the answers is the moment you stop listening. And when you stop listening, you stop learning, your awareness gets clouded, and you start making decisions based on assumptions.
Always be on the lookout for what you don’t know, yet. And the moment you find something, do not take the posture that you are above it. Take a seat. Humble yourself. You’ll grow and learn faster that way.
6. They don’t stay their lane.
Where do people go off-course? The moment they try to do what isn’t their primary skill set, simply because they can.
For example: the Founder with no creative background who suddenly wants to give creative input.
Staying your lane is a skill in itself. It means being willing to step aside and let someone more knowledgable or experienced drive the car, so that you can maintain your own responsibilities in a different domain.
As soon as an entrepreneur tries to wear every single hat, they’ve started down a treacherous path.
7. They can’t handle the responsibility.
It has practically become a fashion statement to have your social media profile read, “CEO” or “Founder” of something that hasn’t even started generating revenue yet.
That proves how many people want the title and are in love with the idea of being this forward-thinking “entrepreneur” more than they actually want to be that person in the flesh.
Because honestly, being an entrepreneur is a lot less about being recognized as one, and a lot more about bearing the responsibility of serving others. If you have people working for you, they are relying on you to take care of them. It’s you who has to put food on the table. It’s you who has to make sure everyone is happy, fulfilled even. It’s you who has to wake up every single day and direct the ship, regardless of how you’re feeling.
I will be the first to admit that just about every point on this list is a lesson I learned by watching Ron Gibori, an accomplished serial entrepreneur himself, day in and day out. And it hasn’t been until I stepped out on my own and started down the path of entrepreneurship myself that every single one of these points has gone from a thought to a raw, stomach-twisting emotion.
Anyone that thinks entrepreneurship is about being recognized as an entrepreneur, was never an entrepreneur in the first place.
This article originally appeared on Inc. Magazine.
Frequently Asked Questions
1. Do Most Startups Fail Because The Idea Is Bad?
No. Many businesses fail even with great ideas. The real problems are poor planning, weak execution, no cash control, and lack of focus – not the idea itself.
2. How Does Poor Money Management Cause Failure?
Entrepreneurs often spend too fast and earn too slow. They don’t track expenses, pricing, or profit. Running out of cash is one of the top reasons businesses shut down.
3. Can Lack Of Discipline Really Destroy A Business?
Yes. Business needs daily effort. Skipping tasks, delaying decisions, or losing focus leads to slow progress, missed opportunities, and frustrated customers.
4. Why Do Some Founders Fail Because Of Ego?
Some entrepreneurs don’t listen to feedback. They ignore customers, mentors, or market changes. Ego blocks learning – and business growth depends on learning fast.
5. How Does Fear Of Selling Hurt Entrepreneurs?
Many founders love building but hate selling. But without sales, there is no business. Avoiding marketing, networking, or pitching leads to zero customers.
6. Can Choosing The Wrong Team Cause Failure?
Absolutely. A bad partner or lazy team member can slow everything down. Skills, trust, and shared goals matter more than friendship.
7. How Does Burnout Lead To Business Failure?
Working nonstop without rest causes stress, bad decisions, and loss of motivation. Burned-out founders quit too early or lose passion.
8. Why Is Inconsistency Dangerous In Business?
Posting one week and disappearing the next… changing strategy every month… this confuses customers. Success comes from consistent effort over time.
9. Can Lack Of Patience Cause Failure?
Yes. Many quit too soon. Businesses often take years, not months, to grow. Impatience makes founders abandon projects before results show.
10. Is Mindset Really More Important Than The Idea?
In many cases, yes. Skills can be learned. Products can improve. But a weak mindset – giving up fast, blaming others, avoiding responsibility – stops progress.
