The number one reason why entrepreneurs fail?

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Business

I came across an article this morning that is so spot on that I just have to share. No; the number one reason why entrepreneurs fail may not be a lack of focus, or lack of good ideas, or because they give up too soon, or any of the famous things you have heard. I really am convinced that the answer that this article provides is it. Here is an excerpt:

Peter maintains that telling lies is the No. 1 reason entrepreneurs fail. Not because telling lies makes you a bad person but because the act of lying plucks you from the present, preventing you from facing what is really going on in your world. Every time you overreport a metric, underreport a cost, are less than honest with a client or a member of your team, you create a false reality and you start living in it.

You know the right path to take and choose another, and in so doing you lose control of the situation. Now, rather than tackling the problem head on, you have to manage the fallout from the lie. I know people who seem to have spent their entire careers inflating the truth and then fighting to meet the expectations they have set.

Simply put, when we lie, we create a false reality that we now have to attempt to live in. Very counterproductive and a very clear path to failure. A business running on false metrics and figures is one that is sure to fail. Lying might not be exactly the number one reason why entrepreneurs fail, but I am betting that it comes close.

Do go read the complete article, The Surprisingly Large Cost of Telling Small Lies.

3 comments

  1. I think one of the prime reasons businesses fail is… being in the wrong place at the right time , with the right ideas, but with wrong government in place.

  2. This article is spot on. How many entrepreneurs out there are truthful to themselves ? Sales figures are up now, we now have more than 10 million new users, revenue this year is highest since we started etc. Living in false reality prevents you from dealing with the core and fundamental issues that are confronting the business. There is no antidote that can heal that symptom till the founder or business owner realizes that telling the truth is what create that psychological feeling that is badly needed for him to face the issues head on.

  3. while they say honesty is the best policy, is it, really? telling the (absolute) truth may be the last thing you want to do, in some business instances.

    It is also said that, perception is reality.

    if a business is struggling, or having some trouble, the last thing you want to do is make it common knowledge…it may make the crash more precipitous / swift..

    all in all, common sense is more important than slavish adherence to any platitude.

    there are no absolutes….

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