It is often said that more than half of new businesses, fail in the first year. This opinion is not entirely true. According to the Small Business Association (SBA), only about 30 percent of new businesses fail in the first two years, 50 percent in its fifth year, and 66 percent during the first 10 years.
We can not predict a business will succeed or fail. However, we can learn from the mistakes of others who have experienced failure. What are their mistakes in business?
1. There is no planning
Again and again went to a business seminar or read a profile of successful entrepreneurs often makes us compelled to immediately start your own business. There’s nothing wrong with that passion. But be careful, do business only a capital of spirit, one-one will lead to bankruptcy.
So that it does not happen, always accompanied by the buoyant spirit with careful planning. Determine the first vision, objectives and business direction would you worked. Including digging out more about the business, how and where to buy raw materials, who will be consumers, as well as where and how to market it. In essence, if you want to survive do not start a business venture before you make a market survey.
2. Weak marketing
At the beginning of the business, we would be tempted to produce as many products to be tasted profit doubled. Nothing wrong with it, provided we know how to market the product. Be smart to exploit every loophole to promote your product. No need to reckless advertising in mass media capital if you do not allow for that. There are many ways that can be used to promote products on potential customers, such as through social media or mailing list. But remember, do not forget netiquette because if the wrong pitch, instead of getting a buyer, promo products you could be considered spam.
3. Poor management
Not that we should have a background in management or accounting to become a successful businessman. We can learn to make good records and records of each transaction. Nothing wrong as well when you make detailed notes about the stages of what has been done. With a good record, we can evaluate whether existing businesses are getting closer to profit doubled or even the threat of bankruptcy.
4. Uncontrolled employee
No one was at the thought of your field of business that will employ many workers. But do you really need a new employee at a time when business is running? Many successful entrepreneurs who started his business by running their own business. They recruit new employees when business is growing. Do not rush to hire employees when not needed. Instead, hire an employee only when the business was growing rapidly and you have to formulate the job description for prospective employees. No need in large quantities, enough recruits as you need. Make sure also that the person recruited met the criteria.
5. Too soon to withdraw money
Who is not tempted to see in a bank account to swell due to the multiple business benefits? Be careful, it is said that eventually a lot of budding entrepreneurs out of business simply because it can not stand to not spend the profits. Separate personal accounts business accounts in order not to be tempted to spend it. Should take advantage of these benefits to develop and expand business.