Entrepreneurs shoulder an incredible amount of responsibility when it comes to the direction and strategy of their business. With so many potential pitfalls that can spell the end of your venture, it is vital to be aware of some of the biggest barriers to the success of your business.

1.  Uncalculated risks

We are all familiar with the idea of the risk-taking entrepreneur, often because the most well-known have a penchant for taking chances. Richard Branson for example built his empire on a bold and fearless approach to business.

While it’s important for leaders to develop their business instincts, operating on gut feelings alone, especially when not tempered by experience or data, can pose unnecessary risk. That same attitude can result in huge success but equally to a swift downfall if these risks are needless or uncalculated.

2. When to validate

Bringing a new idea to market requires an appetite for risk. While it’s important to take the time to really understand and get to grips with the sector you are operating in, it is not always possible to validate an idea before bringing it to market.

Research from CBInsights cites the primary reason why startups fail as a lack of demand for their products or services, with 42% failing for this reason. So, while complete validation may not be feasible, and indeed, being an entrepreneur often means bringing a product to market that does not necessarily stack up against ‘sensible’ validation, such as Elon Musk’s Tesla, or Steve Job’s iPhone, an approach of continuous improvement and refinement is crucial.

It is important to have a solid grasp of the value of your products or services, especially in terms of their unique selling points and the needs of your customers. This will assist in the process of continuous refinement, and allow you to validate what you can, where you are.

3. Under-capitalisation

Your business lives and dies by its cashflow, and one of the biggest reasons for failure is running out of cash before managing to turn a profit. CBInsights found in their survey that 29% of ventures failed for this very reason.

Too often, it takes more capital than anticipated to get a business up and running. These issues are often compounded further when revenues are overestimated, and expenditure is underestimated. Factor in the time it can take to gain traction, and many entrepreneurs are left in a rather precarious financial position.

It is important to remember that money owed on paper is not the same as money in the bank. Ensuring a healthy cashflow at all times and keeping a firm handle on costs is one of your most important responsibilities as an entrepreneur.

4. Overcoming adversity

Success in business requires perseverance and the ability to forge a path forward even when times are tough. Plenty of businesses fail simply because those in charge of steering it through harder times do not stay the distance.

Failures are a part of the process, and something that every successful entrepreneur has likely experienced multiple times. The fear of setbacks should not paralyse you into inaction, but rather should act as an important learning experience.

Overcoming adversity is vital for developing the resilience and mindset that is needed for sustained success.

5. Staying power

One of the greatest strengths of an entrepreneur can also be one of their biggest downfalls – an abundance of ability can become a setback if it results in being unable to stick with one idea and see it through.

Having a clear vision and an ability to generate new and innovative ideas is what sets business leaders apart. However, for a vision or an idea to become truly successful, it must be followed through. Talented entrepreneurs who are full of great ideas for their next venture often do not feel the need to struggle through hard times when they can simply unleash their next big idea.