Fundamentally there are 5 languages of failure that an entrepreneur needs to be careful about:
Blame: Blame is when you feel the problem is someone else and not you.
Guilt: Guilt is when you feel the problem is you and not anything else or anybody else
Helplessness: Helplessness is when you feel nothing can change, nothing can be different or better
Indifference: Indifference is when you do not care to get affected by the result and the problem is not your problem
Limitation: Limitation is when you feel that the current status is the best that there can be.
These were the reasons an entrepreneur needs to steer clear from, but from an organizational perspective, you can avoid these failures:
Market Problems: A major reason why companies fail, is that they run into the problem of there being little or no market for the product that they have built.
Business Model Failure: Most common cause of failure in the startup world is that entrepreneurs are too optimistic about how easy it will be to acquire customers. They assume that because they will build an interesting website, product, or service, that customers will beat a path to their door.
Poor Management Team: There is a well-proven saying: A players hire A players, and B players only get to hire C players (because B players don’t want to work for other B players). So the rest of the company will end up weak, and poor execution will be rampant.
Running out of funds: A key job of the CEO is to understand how much cash is left and whether that will carry the company to a milestone that can lead to successful financing, or cash flow positive.
Product Problems: This can either be due to simple execution. Or it can be a far more strategic problem, which is a failure to achieve Product/Market fit.
