According to statistics, 90% of startups fail within their first year due to entrepreneurial mistakes. In some cases, they cost businesses tens and sometimes hundreds of millions of dollars.
However, it is important to understand that mistakes are a natural part of development. Sometimes it is through them that an understanding of how to build a sustainable business comes.
It is crucial not just to make mistakes, but to learn lessons both from your own experience and from the experience of others. We have collected the most common entrepreneurial mistakes and illustrated them with examples of famous companies. We hope these stories will help you avoid typical “traps” and make your path to success more thoughtful and confident.

1. Underestimating market analysis

Many startups fail because their founders do not carefully study the market, customer needs and level of competition. One of the most striking examples is Juicero. This startup offered a “smart” juicer with built-in Wi-Fi that only worked with branded packs of ready-made juice. The founders positioned the product as an innovative solution for healthy eating, but missed a key point: the technology itself did not provide real value to the customer.
Later, users noticed that the juice from these branded packs could simply be squeezed out by hand, without the expensive device. As a result, Juicero’s reputation was damaged. The startup, which had received more than $100 million from investors, was shut down just a year and a half after its launch.

2. Lack of proper financial planning

Excessive expenses and inflated profit expectations can ruin even the most promising project. A clear example of this is the collapse of General Motors. It is one of the largest car manufacturers in the world and one of the most high-profile cases of financial collapse.
In the early 2000s, inexpensive Japanese cars began to conquer the American market. Then the GM executives decided to sell their products at a big discount. Sales increased and this temporarily solved the problem. Yet it led to a drop in profit margins and, eventually, resulted in losses. In 2009, General Motors, the symbol of American mechanical engineering, went bankrupt.

3. Incorrect team selection

People are the foundation of any business. Therefore, in order to achieve success, it is necessary to hire professionals at all levels of the company who share common values and goals. Otherwise, a problem may arise, as happened with Toyota.
In the early 2010s, the company had to recall almost 9 million cars due to a sticking gas pedal. This caused a serious blow to the company’s reputation and resulted in huge financial losses. It turned out that top managers were informed about technical issues long before the recall. Instead of addressing the problem promptly, they concealed its scale until the last moment.

4. Refusal to adapt

Business must change along with the market. Without adapting to changes, it can quickly lose ground or even fail to succeed. A prime example is Kodak.
Kodak had long been a leader in camera equipment and film stock production. But the company missed a critical shift — the transition to digital photography. It focused on traditional products, assuming the market would remain unchanged. Meanwhile, competitors were heavily investing in digital technologies. As a result, when demand for film plummeted sharply, Kodak was unprepared for the new conditions, which led to its decline.

We hope that these stories will help you avoid making similar mistakes in your own business. Remember: proper planning, careful selection of employees and market analysis are the key elements of any entrepreneur’s activities.
At the same time, it is important to understand that any path to success inevitably includes failures and wrong decisions. The main thing is not to be afraid — and to know how to benefit from your experience.

There is an effective tool that can help you with this — positive thinking. Read about how to develop it in this article. Get inspired, adopt best practices, and continue moving forward with confidence!