No Gain Without pain, well this is so very true when it comes to business. People who can or who are strong enough to take the failures in life can only have a successful business. But no matter how strong you are, facing a failure in business is the last thing a businessman would really want. Therefore one needs to master it and then should proceed with the other plans. Winning over your failure is something very tricky yet very assertive at times. This is the main reason why we are providing you with few obvious reasons of failures in business so that you overcome them before they do you.
- Starting a business just for the sake of starting it – Well if you are really planning a new business launch, just because you want to earn more money or if you are bored of your job and a cranky boss or may be you think that you’ll be able to spend some more time with your family, if you have your own business, then you should definitely give it a thought again. None of the above reason is going to get you success in business. But yes if a person is passionate about some thing and wants to take it a step ahead or if you are physically fit and ready for any kind of challenge, are determined and strong willed and you are creative enough to tackle the competition then of course you can and should start your own business.
- Lack of Leadership Quality – This accounts for the number one reason of the business failures. A person who starts a new business often lacks a lot of management qualities which often lead to a bad financing, poor purchasing, reselling and even hiring. Which in turn obviously cause a lot of trouble to the business resulting in a disastrous failure. Also, a person who is a bad manager could lead to conflicts with employees, and potential lawsuits. Legal matters such as the LightGroup lawsuit, Wal-Mart labor issues, and other employment related problems could lead to failed businesses.
- Less Investment – People often start their business without even noticing the amount of investment needed initially, this often causes a big disaster as either the whole company goes bankrupt or the business itself faces big losses when the outgoing goes way above the incoming. That is why it is very much necessary to assess the amount of money that is needed and if possible have some extra funds in case you need them, as you never know when the costing can go out of your hand. If you plan on using loans or credit to fund your business, you’ll also want to keep a close eye on your personal and business credit reports to ensure you’re eligible for the best terms possible.
- Locality – Well of course you would never start a business in a place where it doesn’t belong. A good location gives you a lot of benefits if selected smartly. Things you should consider before selecting your business location:
- Consider the niche of your business
- Kind of customers according to your business type
- Quality of the location
- Business Friendly environment
- Well equipped neighborhood
- Poor Planning– Setting up a business or I should better be saying, a successful business, one need a foolproof plan of its establishment. A person, who puts in a methodical effort and smart planning along with hard work, surely achieves a lot in his business. Things that should be considered in planning:
- Goals and Future Targets or Plans of your business
- The total Office set up Including the employees and infrastructure
- Financial Back up and Management
- Market analysis
- Promotional Strategies
- Ones strength and weaknesses
- Lack of Modernization techniques and methods – In this fast paced world with highly competitive market, a new businessman can just not afford to have a successful business running on old and outdated technology. So one must be fully aware and equipped with latest technology. Like for e.g. these days it has become so much necessary to have your own website. A businessman cannot afford not to have a company website. As it gives you a brand name, a website works as your global recognition forum, people recognize you globally through internet and get to know who you are teaming up with some of the biggest clients of the industry.
We have always tried to help our readers with their troubles and problems; this was yet another effort from our side to guide people on how to not fail in your business. Hope it helps you in achieving the success.