Someone posed a question at Yahoo Answers as to why some people invest money in a business and then quit before they’ve even started. Why indeed, considering that they already plunked down money for the business?
I ventured 10 possible reasons:
- They realized a little late that they are not cut out for entrepreneurship; that they are better off working as salaried employee or find other means to earn income other than starting a business
- They started to have doubts about their capabilities to run a business and their cold feet made them turn away from entrepreneurship
- They realized that their business is a losing proposition so they decided to cut their losses now than waste resources more down the line
- They underestimated the capital requirements of their business and realized that they do not have sufficient resources to successfully start, grow and manage the business – and that they don’t know or can’t get additional funds
- They failed to plan out how the family would be affected by the business; or members of their family objected to the business
- They simply lost interest in the business; and some other interest captured their attention
- They faile to foresee that starting a business means work, LOTS of work, and they decided that they don’t want all these responsibilities
- They fear that they may run afoul of the law and don’t want to risk it (e.g. zoning, regulatory problems, etc.)
- They really don’t know what to do or how to proceed next; and they cannot find someone to mentor or guide them
- Partners or other investors involved pulled out of the business; and these partners either have the knowledge, skills and resources to push the business to success
Let me know what you think of the above reasons.