Something that can be absolutely certain is that no one is as lucky as never fail; however, you know you can also bet and be sure that more than one has wisely learned from their mistakes. We are human beings; it is understandable that one of our fears is the fear of failure and disappointment. Even failure leads to further frustration whenever remind us that “unmentionable error”.
There are a high number of entrepreneurs with an incredible desire to take that big step in their lives to change; with business visions that go beyond their expectations and money are clearly ambitious. But, as I said earlier, we are human beings with fear of failure. Lots of entrepreneurs have excellent business ideas and never dare to start their project by the fear of failure, in fact that fear is much stronger than their dreams.
This is when you realize that an easy road will get you a good destination. Precisely what makes the difference between successful and less successful people is the ability to take risks and willingness to overcome these risks. Big businessmen of today were also entrepreneurs who failed once, and thanks to valuable learning from their mistakes able to successfully create their businesses today.
Entrepreneurs generally tend to decline because of their lack of experience and perhaps by the fact of being overly motivated with their business ideas, regardless of whether the business is profitable or not. Of course, failure is never present in our business plans because it is a subjective feeling.
We define failure as a time to reflect on our journey and we still have to go. It is an opportunity to re-consider new goals and change the pace.
But do not despair; one should not fall into the failure, right? Here we can guide your steps with a list that will allow you to know the 7 most common mistakes that entrepreneurs say with their first business.
6 Reasons why businesses fail
Actually, there are many reasons that facilitate the failure of your business: competitors in the market, bad financing or planning problems. As an entrepreneur, you must know and understand these reasons to act firmly and prudence when creating your small business.
1. Not having a business plan: Most entrepreneurs tend to start their businesses with great enthusiasm and it is very necessary to take the key to launch your business, buy quality products and have financial backing data. You must know the market, in which you are involved, analyze the price range, profitability, costs and investment required. A business plan will help you plan your project and help you understand the main points to avoid mistakes, getting the necessary capital, apply a good sales strategy that ensures profits and, above all, to preserve the entrepreneurial vision.
2. Start your business in a big way: As mentioned above; to be a successful entrepreneur you need to have the ability to take risks, and you should be aware that the risk increases if you start a business with a huge investment without even knowing if it is profitable or not. That is why you must equip your business with the necessary materials and rent a place instead of buying it, and open a single branch. Misuse of bank loans can be the difference between success or failure, may fail your business and enter into debt if your expenses are greater than income.
3. Not having cash in reserves: When you start a business, you’ll have a number of expenses. If you handle a budget of untidy expense this can be a risk factor for your business. Therefore monthly cash reserves are essential to help control the situations that will arise, at least until you start to generate more revenue.
4. Lack of adaptation: You must be sure and know what market you’re getting into, understand clearly how to make fixed and potential customers, know what their buying habits and needs. Adapt to them and listen to them, be in full readiness to serve them by phone, accomplish this will lead to the growth of your business growing. Remember that a satisfied customer will not hesitate to do publicity.
5. Being totally alone in your business: The real successful companies are formed based on a good team of partners willing to support. One of the biggest challenges facing entrepreneurs is to believe that they have the ability to own power against all. Being surrounded by people with similar interests can benefit you both morally and economically, and together face the challenges and overcome them. In other words, you’ll be more motivated to take your business to success if you surround yourself with those who share their vision.
6. Waste time in re-develop a strategy: There is no perfect products, although many owners have the idea of offering their products as the most that are on the market. And in turn, they also want to be the cheapest. This is the worst option. You must enter the commercial field with a good plan and a good strategy, but apply a single path for your business. Quality or quantity? If you delay in creating your strategic plan, another person can win in the race.
What should you do to fix these errors?
The important thing is not just to know these reasons why businesses fail, but be smart so that your business is not prey to any of these reasons. Go through a bad time cannot be an excuse to give up and throw in the towel, on the contrary, must work harder.
It is best to start by hiring professional people in giving excellent service, and also look for managers who have already worked in other companies like yours and who have experience in their work.
At first, it is hard to have to divide your budget to pay staff to help you in your business; but I assure the long run will be more profitable than you thought and what is going to build your business on a basis difficult to collapse.
Excellent motivation to have many more desire to get ahead is to trust your business vision to other business owners like yours who have already experienced the same as you and even started their business just like you. So you will learn that successful owners have also been in the same situation and who know everything that needs to happen to reach the pinnacle of achievement.