1. The reason to start your business may not be right
If you are starting your own business with the single aim of earning a lot of money, or to spend more leisure time with your family, or not to be a subordinate to any boss, these would not be the right reasons. To achieve entrepreneurial success you have to be passionate about your venture and have a determination and firm belief that your product or service has a place and fulfils the customer needs in the market. You should be physically fit to face challenges, have independent thinking, and possess some creative intelligence. Honesty, integrity and interpersonal skills are also important characteristics of a future entrepreneur.
2. No management skills or experience
It is an oft proven fact that lack of management experience and skills, turn out to be the undoing of a business venture. Fresh entrepreneurs in most cases do not possess experience in recruitment, accounting, finance, administration, sales and human resource management. If they proceed to do it all by themselves, it would be a grave mistake. New business owners should take the assistance of people specialised in these fields and also remember not to neglect the business at any point of time. A good deal of planning, market research and competent organizing will go a long way in placing the business on the track of growth.
3. Inadequate funds
One of the major reasons why most new businesses fail is due to shortage of funds. One should make a proper estimate of how much capital would be needed before starting out on a business venture. An estimate of how much income they can earn to sustain in business should also be drawn up. Nurturing high expectations and closing down even before they get a fair chance for success, is to be avoided. It is absolutely necessary to make a realistic, practical estimate that covers not only the setting up and operation costs, but also provides a buffer till the business is able to generate revenue and sustain itself.
4. Unsuitable location
Of course, the place where you set up business is of crucial importance if you are a small company, proposing to serve a specific segment of customers. If you have chosen an apt location then the chances of staying in business are bright but if you have made the wrong choice then it would spell disaster. Location plays a very important factor in the establishment and the well being of a business. First of all identify your customers and make that your location is easily accessible with good lighting and ample parking. But, make yourself familiar with the neighbourhood and its cultural background for a good start.
5. Not preparing a proper business plan
It would not all be surprising if small businesses fail due to lack of proper planning. Every small business should remember that it is essential to start out with a proper business plan which should be based on practical knowledg, assessment of the current business scenario and authentic information, besides projections for the future also. The components of the plan may include, the company’s vision, goals, number of employees, financial capital, marketing and analysis of the competition, and budgeting.
6. Expanding beyond one’s capacity
If too much is attempted too early, it is often the downfall of many small businesses. There is a need to assess the success and take up expansion when the time is ripe and the company is able to withstand the financial and administrative upheavals. One should grow, but at a carefully pre planned pace taking all contingencies into consideration. If expansion is indeed required, after careful review, research and analysis, of the elements of expansion identify what you would need to add in order for your business to grow.
7. No presence on the web
If you want to be a successful company it is imperative, in today’s business world, to have a web presence or a website. This way, customers can get to know about your company and it makes reaching out easier. Without the presence of a website you may lose out on innumerable business opportunities.
Steer clear of these mistakes and take steps to fail-proof your business by heeding the advice and following your goal with a positive mindset, against whatever challenge that may arise.
The article speaks of the problems that you may face when starting a new business. You should be physically fit to face challenges, have independent thinking, and possess creative intelligence. Honesty, integrity and interpersonal skills are also important characteristics of a future entrepreneur While it is good to be optimistic, you should take precautions to avoid mistakes that will hinder your progress and will enable you to progress with more confidence and assurance of success.To achieve entrepreneurial success you have to be passionate about your venture and have a determination and firm belief that your product or service has a place and fulfils the customer needs in the market.
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