Failure and success are somewhat connected. Every business owner wants to succeed, but in order for someone to succeed, he has to know how to avoid failure. Of course, it is important to be positive and optimistic especially when starting a business. But at the same time, it is important to be conscious and alert because there are many pitfalls in business.
In this article, we are going to be looking at some reasons why most businesses fail.
Having a great vision but no concrete plan
As mentioned earlier, every business person wants to succeed. Entrepreneur, usually have a clear and descriptive vision of what they want their business to look like. But only a microscopic few have actually been able to bring their vision to life.
Having a concrete plan is very important if a business is to succeed. Today many businesses fold up because they are not properly planned. In order for you to dominate in your industry, you have to do a lot of underground work. First, you need to have a deep understanding of your industry. What this means is that you need to find out what your competitors are doing. Check out their website, their products, their market shares and other important information. The information you are going to gather during your research will help you in building a concrete plan for your business.
Employing the wrong people
Many businesses hire the first person that applies for a job opening, obviously due to the fact that they are desperate. The truth is that, when you hire a person without ascertaining if he has the skill to fill up the void in your business, there is likely going to be trouble. What you should do therefore is to take your time to find the right candidate that will be able to fill up the void in your company.
Not having faith in your team
Mistrust in a work environment is a sign of disaster. If you as a team leader don’t trust your members, it means that you are going to have a hard time making progress. What you should do in this regard is rebuild trust among your team and make a strategic plan that will help you bring out the best out of your current team. Let go of anybody who doesn’t want to stay in line.
If you note the problems highlighted in this article, you will be able to navigate your business from disaster.
According to Forbes, over five hundred thousand businesses are started each month. Establishing a business is not a new practice and in these trying and uncertain economic times persons are actually doing it and increasing their worth. The internet has significantly changed the way that business is done and conducted. Someone starting a business doesn’t actually need to have a physical location but merely an online presence. The business owner doesn’t necessarily need a product to sell but can sell a skill or trade to the public. Apart from reduced cost for an online business owner, there are several reasons why a person should start their own business.
#1 Financial Independence
Some persons prefer to work for themselves rather than commit to an office job or employer. The thing is, a business owner can have cash at any point in time. Rather than praying for pay day, s/he may decide to draw money from the business when needed. This can be a bad practice if it is not recorded but generally, it is. Financial independence is gained as you do not have to depend on an employer for your month’s pay but can choose to pay yourself weekly, bi-weekly or monthly.
#2 Increased Income
If you maintain your permanent day or night job and have a business, you increase your income. A lot of persons do this for the money. An increased income could actually qualify you for bigger loans and mortgages that would generally be out of your reach with a single income. With an increased income, you pay more taxes but you have the ability to improve your quality of life and do something that you may actually enjoy. Having two incomes also increases your financial security; even if something goes wrong, you still have a fallback.
#3 Increased Autonomy
With your own business, you can be your own boss. You can choose when you want to work and how many hours you want to work. If you have certain financial goals you can also choose the clients that best suit your needs and are easier to deal with. You can set your own deadlines as well and decide if you want to work from home and what time you start and end your day. You also benefit from signing company letters and seeing your signature on employee pay checks
#4 Self Actualization
Having a business can actually see you achieve self-actualization. If you studied business at all, you would have known of Maslow’s hierarchy or needs as a motivation theory. Everyone wants to achieve self-actualization and be the best that they can possibly be. Having your own business and one that is successful could help you to achieve this. You do something you enjoy and when you do this, you do it to the best of your ability and achieve your potential. Business is not for the faint-hearted but for the ambitious soul who is willing to put in the work and see its success.
Not convinced? Here are 10 more reasons that are life changing!