10 Causes of Business Failure
|August 8, 2012||Posted by bella under Business|
You may be one of the would-be entrepreneurs who dream of having an own business. For some people like you, have your own business is a reason. Self-satisfaction, a desire for independence would not be paid by others, is one strong reason for a prospective employer.
It could also be other reasons because of the opportunities and limited job opportunities, the downsizing and restructuring of companies, the threat of dismissal or other things that can make you obsessed with becoming an entrepreneur.
However, the majority still fail to translate their business dreams into reality. The number one culprit is you, as a prospective employer, usually moved by the fear of failure. It is true that starting a business is one big risk. To increase the chances of your home business success, here are some common causes of business failure you need to know:
1. Failure to do market research. Many companies, both home-based or large company, failed because there is no adequate market for their product or service. A comprehensive analysis of the business is especially important for home businesses, because some businesses are suitable for a home business, while some do not. If your business requires you to meet a client, you should first check how your family (and neighbors) will react to the arrival of the people in your home. Before starting any business, it is necessary that you perform a thorough examination of the market and market analysis.
2. Passive. If you smoke, you are only fit to work for someone else. Unless you can afford to hire employees directly. As a single team, you hope to do it all alone – from writing a business plan, product manufacturing, marketing and sales of products and services, perform bookkeeping tasks, and a million other tasks! Remember, you only rely on yourself! No customers means no business!
3. Poor time management. One of the advantages of working at home is that you can set your own time. This, however, be an interesting dilemma: it is difficult to manage your own time! poor time management, because you are alone and no one is watching you. You should be able to organize and prioritize. There are a million reasons to distract you from being productive and you need to learn to manage your time effectively!
4. Less serious manage the business. You may not have a fancy office in downtown or you may not need to wear work clothes, but the home-based businesses need to be equated professionalism as the work in the office. Your income will be directly related to the amount of time, effort, thought and money you put into the business – a far cry from the days of a worker when you get paid even when you’re in the office but no office work.
5. Not follow the philosophy of 80/20. 80 percent comes from your business and 20 percent comes from your customers. Remember, it costs twice as much to get new customers than retain existing ones. Retain your customers so happy and comfortable, much cheaper and easier than looking for new customers. Get repeat sales from existing customers lower marketing costs and higher benefits.
6. Not often promote business. Your business as the market size that you want to achieve. You need to aggressively promote a product or service. Do not think of promotion as an unnecessary burden rather than an investment. Promotion is really important.
7. Spending too much capital. During the early stages of business development, you may be filled with the capital. Avoid costly mistakes that are not necessary. Unless your business model and you have built a strong revenue stream, you should not assume that you will have the cash and working capital forever. You do not need to buy office equipment if it is not necessary. Ask yourself: Do you really need an expensive massage chair for you? Poor financial planning, mismanagement of funds or expenditure budget is a common cause of business failure.
8. Not Spending money wisely. First, you need to understand the cardinal rule of business: money money give birth. Sometimes you spend money to make money. For example, to obtain legal advice, you have to pay a lawyer. Send a press release alone cost of communication (fax, postage, envelopes, etc.). Many home business owners lose great opportunities because they refuse to invest where necessary. Spend your money wisely.
9. Not asking for help when you need it. You must stay on the right path and go back to the right path when your business has not felt able to be maintained. You need expert advice and counsel from friends and business associates or experienced. Follow the discussion on the mailing list, attend seminars, meet with other fellow entrepreneurs. This will help you improve your business that has begun to lose direction.
10. Do not have an emergency plan to deal with difficult economic problems. Difficulties can tap the business at different times. Famous entrepreneurs home to plunge into all business. They do not have an emergency plan-back scenario at the beginning of fall. They think that everything will go smoothly, just the path fraught with difficulties and challenges alone. The most important part of this problem is to recognize the problem immediately. Learning to be careful all the time, and sharpen creative thinking people. Be creative in your business thinking can lead you to a more positive direction.
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