Running a business can be challenging, but it is not impossible. There are many different reasons why businesses fail, but understanding the root causes of failure will help you to avoid them in your own business. In this blog post for entrepreneurs for Entrepreneur magazine, we explore five common reasons why business owners lose their shirts and how to avoid these pitfalls!

1. Human error

– Business owners must take responsibility for everything that happens in their companies. This means taking the time to understand what is happening with your business, and making plans so you can avoid disasters before they strike.

2. Competition

– Competition is an inevitable part of business, but it doesn’t need to be a death sentence. You can compete effectively by focusing on what makes your company different and working hard to present that message in the market place.

3. No growth plan

– Setting goals for your company is an important part of growing it. It helps you decide where to focus your efforts, what parts of the business are working and which aren’t. Goals also help all members of a team work together more effectively towards common objectives.

4. Poor team dynamics or discord

– Teamwork is an important part of running a business, and if team members aren’t pulling together it will seriously hurt your company’s ability to perform. Make sure that everyone (including yourself) feels like they’re contributing to the success of the company – you won’t be able to accomplish anything by working against each other!

5. Lack of ambition or drive

– In order to be a successful entrepreneur you must have the drive and determination to succeed. You need an ambitious goal that inspires your team, or else there is no point in even trying! If you don’t believe in what you’re doing it will show, and this lack of passion can kill motivation quickly.