We all hear about people who started a business but were unable to cope with the challenges of it and spun into a tailspin until finally, they failed. Stories like this create fear and stop us from entering the business world.
When starting a business the last thing you should be obsessing about is failure. According to Small business Administration (SBA), it’s true that a high percentage of new startup business do fail, but obsessing about that is only counter productive. You instead need to acquire a wide knowledge of business tactics along with a strong passion and determination for your field. Investigate as much as you can about the trends in market and try to predict the ultimate response of your product or service.
Do you have a Plan?
“Planning without action is futile, action without planning is fatal”
Business is a linear process in that you invest money, design, create, and produce, and sell them in market and gain profit. Business needs strategic planning regarding investment, finance, and operations to achieve targeted goals. It’s a road map for your business success. To start your business venture, first draw a proper plan with visions and missions with a complete business concepts and understanding of the market. Keep track of that plan with systematic assessments and review and update it periodically.
3 Major Reasons A New Business Fails:
1-Lack of Management expertise
You have a sound knowledge of the business measures but you don’t have any prior management experience? Lack in relevant management experiences such as production, purchasing, selling, finance and HR is a major cause of business failure.
I am not saying you should abstain from hiring fresh college graduates, do not take the advice to the extreme. There is still a lot of value in innovation and creativity. Also, younger, fresher employees are generally more familiar with new technologies. Keep a blend of knowledge and experience in your team so that you can have benefits from both aspects.
2-Convenient location makes a difference
Sure, the Location is important because proper location can get you more customers walking in. While opening your business you must take into account the location particulars as the wrong location can destroy a business even if it is highly managed. The best location helps in growth and profit. Location factors contain community preferences and acceptance ability of a new business setup.
3-Marketing is the Heart of Your Business
I am giving you a serious warning …… Don’t start business without a good marketing strategy. A primary reason for failure of new business is that the people remained unable to truly understand the importance of marketing. Marketing has crucial impacts irrespective of your industry; it can make or break the business. With an effective marketing plan you will have a power to create possibilities of a steady growth over time. Keep coming forward with the advertising and promotional activities to retain your business continuity.
We hope you find this information helpful to dive into the entrepreneurial sea. Keep these tips in mind and get ready for a lot of late nights. Eventually, you may find your success. Good Luck!