Why will most startups fail within three years? Entrepreneurship is not only fun; it’s filled with pitfalls. Numerous beginner-level entrepreneurs don’t spend enough time focusing on their financial and business plans. Recognize that these are the secret to long-term success.

In “The Entrepreneur’s Shepherd” by Larry Morgan, the writer identifies the most prevalent pitfalls that kill entrepreneurs and offers real-life strategies to avoid them. The most significant cause of failure for startups is financial mismanagement. Most entrepreneurs low-ball the business expenses and do not budget for surprise costs. They could over-invest in non-critical areas or not raise enough capital to see their business carry them through the initial phases. Without a financial plan, the best ideas in the world will fail.

Another frequent error is not knowing the market. Most entrepreneurs think their product or service will sell without proper market research. Morgan emphasizes the need to test demand before launching. Just because you have faith in your concept doesn’t mean there are enough people out there who will pay for it. Disregarding market research can result in lost time, money, and effort.

In addition, many entrepreneurs also struggle with branding and positioning. They do not distinguish themselves from others, which makes it challenging to be unique in a dynamic market. Morgan emphasizes that successful companies know their value proposition and have powerful messaging for their specific audience. Without this, potential customers might have difficulty understanding why they should use your company over any other.

Another fundamental error is attempting to do it all on your own. Entrepreneurship is complicated, and those who feel shamed fail to ask key experts for assistance. Morgan urges entrepreneurs to surround themselves with a good team, find mentors, and tap into others’ knowledge. A successful experience is hardly just a one-person experience; having appropriate support people by your side can make a significant difference.

Steering clear of these pitfalls doesn’t guarantee success but gives you a more credible possibility. “The Entrepreneur’s Shepherd,” delivers  practical advice on sidestepping these traps and creating ongoing, profitable companies. If you’re committed to starting or expanding your company, learning from the mistakes of others is one of the most innovative things you can do.

What were the mistakes that you have had along the way as an entrepreneur? The most incredible way to prosper is to learn from them, adjust, and move forward.