Significant percentages of new businesses not only face challenges but also end up failing altogether. There are various expert opinions on what a business owner should do or not do to ensure that they keep their boat afloat in the perilous waters of the entrepreneurial sea.
However, there are factors which if not avoided, they will weigh down your business and most likely sink it forever more.
- Starting up a business for the wrong reasons
Most people start businesses to earn a lot of money, to spend time with their families or because they want to be an own boss. If you are thinking along this line of thoughts, you are wrong.
Start a business because you have the zeal, passion, determination, positive attitude, drive, motivation, and all the positive energy.
- Poor Management
A majority of new business owners lack the management expertise in areas such as purchasing, sales, finance, production or even in hiring and management of employees.
Lack of education and skills lead to poor management. Ensure you know when things go wrong and correct the situation immediately.
- Lack of enough capital
Lack of enough cash flow is fatal to any business. Most of the times, business owners underestimate the funds required to run a business.
This forces them to close down the business before they reap any fruits of their hard labor.
- A Bad business location
A bad location is an unmitigated disaster even for the best-managed enterprises.
Setting up a business at a place where there are no customers, no accessibility, no security, and no competitors is setting yourself up for failure.
- Poor Planning
All businesses, no matter how big or small should have a business plan. Many startups fail due to fundamental shortcomings in their business plan.
Planning should include a well laid out structure of your business, your goals and mission, potential hiccups and their respective solutions, and budgeting.
- Expanding too soon
This business startup failure occurs when business owners confuse success with the number of stores that they have. Slow, steady, and optimum growth is recommended for businesses.
The expansion should be considered after thorough analysis and review of the current business success.
- Lack of a website
Lack of a website in the modern world is like lighting a candle and then covering it with a dark cloth. Nobody will know it ever existed.
Lack of a website makes you lose business to those who have websites forcing you to pack up you entrepreneurial bags and go home.