Have you ever started a business and it later on fails? And have you ever taken it upon yourself to know why that particular business failed? If you have not experienced business failure then maybe you have had relatives or friends that have tried and failed at it. It is not a bad thing neither should you be afraid to be part of a failed business, at times the failure of that business is a success story on the venture you embark on next.
We get on things blindly without proper knowledge on how to handle everything related to the business. ‘You have never tried anything if you’ve never failed at all’ that is what they all say. Here are some of the mistakes people do that later on end up sabotaging their new businesses.
Not having a business plan
A lot of people have a tendency of overlooking this part and it forms the most important part of every business. Trust me no business stays on for long without a proper business plan. It is as essential as the profits we want to make. Creating a business plan is quite tiring I must say. It consumes much of your time and requires one to do much research on the market. This is one of the reason why many would just want to go ahead and start a business without doing any form of mapping whatsoever. Having a business plan will save you more money and time that you would later on lose if you skip it. Additionally, it will act as a guide when starting the business.
No marketing investment
We all want to get the revenues at the end of the day but do not want to put in the effort that promises good end results. You are told “build it and they will come” but who will come if there is nothing to show. Make some necessary noise all over and the right ones will want to be involved. Many business people are always reluctant when it comes to spending money in matters related to marketing the product out there. No offense but people always want it easy and expect magnificent results. For you to get more you must be ready to spend more. There is no short cut in building a successful business and that is why day in day out Safaricom will always lead because they know the importance of marketing.
Lack of enough capital
The idea of having a business is great but how many of us have the money to start that business. If no one told you, getting into business is very expensive and it requires a good chunk of money. So wanting to venture out without having enough money to sustain yourself and the business before it gets stable will force you to use the money you are getting from the business for your own personal means and that can result to failure of the business. Ensure that you have saved enough money that can keep the business running for a while.
Not doing enough market research
Every other business requires extensive research done on the market to be able to understand how the market behaves and how people will receive that entire business idea. It is good to know what you are getting yourself into and what will make you survive the market. Doing enough research will help you understand all the dynamics of the market. Most people fail because the amount of research they do is less and later on expect the market to receive them very well. Do your market research very well and you won’t have to close it down after one week.
Overlooking your competitors
Unless you are planning to venture into a monopolistic kind of business, my friend, competitors will be looking at you from every corner and that requires someone that is not afraid of competition. Do not assume you do not have a competitor always be aware of your surroundings to ensure that your competitor does not steal all your customers. Everyone always watches out for themselves. Don’t assume them but always be aware of their everyday move.
Relying on yourself for everything
Human beings will always need people around and that is why we are told that no man is an island. It is the same for business. It is going to be very difficult if you are expecting to do everything without anyone’s help. It does not have to be financial help but also mentorship. In business, you will require people to hold your hand in every step of the way until the moment you are stable enough to stand on your own. Ask for some advice on how to go about things it won’t hurt, but will help you as you climb the ladder to success.
There are quite a number of things that lead to new business failure others that I could not highlight because am aware that if you have been a victim of this you know where to refer to the next time you want to try something out. If you haven’t fallen victim, ensure that you take keen of the stuff highlighted above they will help save you future loses.
She has a background in Business & Info-Technology, CFO at Tsavo Media Group,and a pro-Chef on the sidelines. She’s passionate about Girl-Child empowerment and is an aspiring inspirational speaker, motivated by daily life experiences and dreams of a better world where everyone can realize their potential to the maximum.
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