Businesses often fail in the first few years due to a lack of planning or no planning at all. Even if you work hard to develop a business plan, they’re commonly fluff. Financial projections do not reflect the actual revenues because, often, it is a new business a founder has never worked in before. It’s a guess — and often a wild one.
Administration will take up enormous amounts of time for a founder, and when a business is new, there usually is only a little help. Work-life balance is not something founders often get at the beginning. All that responsibility lands on the founder, regardless of its management, cash flow, legal troubles, or many other things. This mundane crap will fill your life until you finally find the budget and time to hire it out to someone else.
It is no surprise that burnout became prevalent amongst tech employees during the COVID pandemic, with over 68% reporting that they were feeling more burned out working from home.
Sometimes a business doesn’t have a monetization model from the beginning; sometimes, they do, but unrealistic expectations lead to beliefs that profits will be immediate. It will usually take a year (or more) to find profitability, but sometimes a monetization model will require a pivot because the original plan didn’t work. In the beginning, most of the time, there’s nobody else to blame.
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