- December 16, 2016
- Posted by: Chowdhury Shahid Uz Zaman
- Category: Business
Work on your own is a big challenge for any professional, a path full of obstacles. The 10 most common reasons for failure
What are the main risks for those who choose to go it alone?
Let’s find out right away with analyzing step by step the 10 most common reasons for failure against which managers must confront when they are to open a business.
- 1 #1 – Do not have a business plan
- 2 #2 – Deciding to start your own business for the wrong reasons
- 3 #3 – Implement an inefficient and ineffective management
- 4 #4 – Do not have capital
- 5 #5 – Choosing the wrong location and propose an offer uncompetitive
- 6 #6 – To ignore the importance of the Internet
- 7 #7 – Becoming a victim of uncontrolled growth
- 8 #8 – Do not record any income and expenses
- 9 #9 – Hiring the wrong people
- 10 #10 – Do not treat marketing
#1 – Do not have a business plan
Before you start a business operating in any market sector, it is essential to draw up a business plan in which they are least present:
- The target markets;
- Marketing operations to be implemented;
- Corporate goals of short and long term;
- The finances necessary to support the costs of equipment, office, staff, etc.
Such a document allows you to drive the business towards the right path, avoiding running into dangerous situations and more or less fatal errors.
#2 – Deciding to start your own business for the wrong reasons
In fact, open a business thinking of becoming richer or free can be one of them to set goals, but it cannot be the main reason that drives the new business owner to choose the path to independence: Before you take the big leap is,, You need to be absolutely certain of possessing the appropriate level of interest and passion for the work being undertaken in the future reality, so that they can provide a solid foundation from the start to enable it to strengthen themselves and to face competition. A business run by deeply motivated and aware certainly more chance of survival.
#3 – Implement an inefficient and ineffective management
Since, in most cases, the entrepreneur novice does not have the skills to handle properly all the facets of an own business (financial department, administration, logistics, etc.), If it wants to contribute to the growth of the business, you may choose to attend short courses in the subjects where sin or to hire skilled managers to help you in starting-run the StartUp.
#4 – Do not have capital
Spend and spend immediately all gleaned savings over time just to take off a new company, is a serious mistake that can result in irreparable damage to penalize even the most promising entrepreneurial project of all: before going to work for themselves, so it is only right to consider each single cost that you will face, trying to save to the maximum in order to support serenely all necessary expenses. This will make it much easier to have the liquidity to address the multiple needs of a young company.
#5 – Choosing the wrong location and propose an offer uncompetitive
The first rule for those who want to start a business is the ability to identify the right location: think for example to place your own restaurant in a place where this peripheral too poor turnout of passers-by, is a good way to crucify activity still before opening.
In addition to this, we must then also consider the offer destined to prospective clients: competitive prices, professionalism of the staff and medium-good products are all factors that have well public awareness of the new proposals. To achieve this it is essential to consider your target market, the consumer demands and habits of competitors, trying to secure a valuable service by mass.
You may also like to read another article on Heygom: Become successful entrepreneurs: 5 Reaction to failure stories that inspire
#6 – To ignore the importance of the Internet
Open a business in our day means more and more to be in the area and online, because who spends want to find what they need without any of the effort: the best solution would be to have a website and the pages on Social Network ideal for your business (Facebook, Twitter, LinkedIn, Google+, etc.) to never lose direct contact with the relevant public.
If in the 90s you could not help but have a telephone and a fax machine today may not be accessible on the internet!
#7 – Becoming a victim of uncontrolled growth
When a StartUp begins immediately with great results, there is the risk that the business owner with little experience to become a victim of uncontrolled growth that causes you to spend too much money for investments that are not dictated by a strategy but by “feeling”. To start on the right foot is therefore necessary to pursue a gradual development, which allows to set aside as much cash as possible to use even when the business will be more stable.
#8 – Do not record any income and expenses
The records of the accounts represent a kind of real lifeblood of all business activities, because thanks to them you can get the financial situation always clear the whole enterprise : to know how much money is available, how many should be spent on have no debts and how many to put the business in a position to grow, need someone who regularly take care of updating with particular care business income and expenses with the use of professional tools such as a management software.
#9 – Hiring the wrong people
Given the fact that, in many cases, the face of the activity is shown by the employees, it is imperative to choose the serious professionals, enterprising, educated and motivated, allowing the public to have an experience of purchase as positive as possible : the lazy staff, unmanageable and listless may give a negative image of the whole enterprise.
#10 – Do not treat marketing
Every single online marketing action (website, social pages, advertising campaigns in the network, etc.) And offline (brochures, flyers, business cards, etc.) Is absolutely vital for those who choose to go it alone because, in addition to allowing the public to learn about the company’s activities, also allows sending the firm’s values and share them. A good tip can be to predict from the outset a budget to invest in this kind of activity, so as to be able to benefit more and reach as many customers as possible and fuel the growth of our reality.
These are the 10 most common reasons for failure for new entrepreneurs who choose to start their own business: causes risk which remain distant to avoid running into problems difficult to manage.