Don't Set Your Business Up to Fail: The Realities of Entrepreneurship

By John F. Hendershot

Entrepreneurship is one of the most exciting and challenging pursuits imaginable. In Michigan alone, there are over 900,000 small businesses, and nationally, that number surpasses 30 million. Most entrepreneurs begin their journeys with a dream: a skill they’ve mastered, a trade they’re passionate about, or a solution they’ve envisioned to fill a market need. But dreaming is the easy part—turning that vision into a sustainable business is where the real work begins.

Unfortunately, too many entrepreneurs set themselves up for failure before they even get started. Here’s why—and how you can avoid those pitfalls.

The Harsh Realities of Starting a Business

Starting a business comes with significant risks. Entrepreneurs often deplete their savings, take out second mortgages, or even lean on predatory lending products like high-interest credit cards to fund their ventures. These financial sacrifices can be crippling, especially when paired with the pressures of timing market trends, understanding consumer demand, and navigating the broader economic landscape.

If you don’t have:

• Access to capital,
• Knowledge of your industry,
• Competence in business best practices,
• A network of the right people (social capital),
• The right timing and a bit of luck,

Your chances of success are already diminished. Even in the best economic conditions, the statistics are stacked against entrepreneurs. Without preparation and a solid foundation, your business might not survive.

Common Excuses Entrepreneurs Make

Too often, entrepreneurs fall into one of these traps:

1. Overconfidence: “I know more than anyone else; none of this applies to me.”
2. Recklessness: “I’ll just wing it—losing money and time isn’t a big deal.”
3. Procrastination: “I don’t have time for research or planning.”

The hard truth? Even seasoned entrepreneurs who have successfully launched businesses before fail when they ignore best practices. Success in business isn’t about luck—it’s about preparation, strategy, and execution.

The Importance of Coaching and Mentoring

Every entrepreneur needs guidance. But it’s critical to choose the right mentors and coaches—people who have walked the path you’re on and can speak from experience.

Ask yourself:

• How can someone coach leadership if they’ve never managed a team?
• How can someone teach sales if they’ve never closed a deal?
• How can someone advise on contracts if they’ve never negotiated one?

There’s a difference between theoretical knowledge and lived experience. Just because someone has a certificate or degree doesn’t mean they’re equipped to guide you through the real-world challenges of business.

The Value of Experience

For nearly ten years, I worked in banking. I interacted with business owners daily, managed employees, and handled profit-and-loss statements. With an MBA and a Master of Science in Management, I thought I knew business.

But I didn’t truly understand leadership or business operations until I owned my own company. It was only when employees depended on me, and I had to create systems and processes from scratch, that I learned the difference between theory and practice.

Setting Your Business Up for Success

Entrepreneurship is deeply rewarding when done right, but it can be a nightmare if approached haphazardly. Here’s how to set your business up for success:

1. Invest in Research: Understand your market, your customers, and your competition.
2. Seek Mentorship: Find coaches and mentors with real-world experience. Learn from their successes—and their failures.
3. Build Systems and Processes: Create a roadmap for your business operations, including workflows, customer service protocols, and financial planning.
4. Commit to Consistency: Treat your business like a marathon, not a sprint. Success comes from daily discipline and long-term dedication.

A Word of Encouragement

Entrepreneurship isn’t for the faint of heart. It requires grit, determination, and the willingness to learn from mistakes. But with the right preparation and guidance, it can also be one of the most fulfilling journeys of your life.

Think of building a business like exercising. Without discipline, consistency, and the right plan, you won’t see the results you’re hoping for. But with effort and commitment, the potential is limitless.

About the Author

John F. Hendershot is a follower of Jesus, husband, father of three, and entrepreneur. He is the founder of iNFable socks4cause and the author of “New Lenses: 52 Personal Challenges, Thoughts, and Convictions of a Humble Sinner”and “Learning While Leading: A Compilation of Articles.”

John holds a B.A. from Western Michigan University, an M.S. in Management, and an MBA from Cornerstone University. Passionate about leadership development and social causes, he resides in Holland, Michigan, with his family, where they are active members of Central Wesleyan Church.

Entrepreneurship is a journey. Don’t let a lack of preparation or bad advice derail your dream.