It is often said that more than half of new businesses fail within the first year. According to the Small Business Association (SBA), this is not entirely correct. SBA states, only about 30 percent of new businesses fail in his first two years after opening, 50 percent in the first five years, and 66 percent during the first 10 years. Only 25 percent who managed to continue the business up to 15 years and beyond.
Nevertheless, not all businesses have to fail first. With planning, financing, and appropriate flexibility, the business also has a better chance for success. In order for your business is not experiencing the same error, consider the most common reasons that lead to new businesses fail.
Not doing market surveys
For example, you want to open a burger restaurant or restaurant donuts, and you have to calculate the amount of capital. However, you do not realize that the business of burgers and donuts are getting fed up, and you pick an area where many restaurants have donuts or burgers there. So, when you want to enter, competition is quite sharp and you have trouble getting visitors.
This is a mistake that make you fail from the start. If you really want to open a restaurant, choose the type of food that does not exist in the area. Or, choose a product or service that is required of residents in certain areas. Much easier to satisfy consumers' needs rather than creating a product and trying to convince people to spend their money.
Problems with your business plan
Structured business plan that realistically are the foundation of a successful business. In the business plan, you must determine a realistic goal of your business, how do you achieve that goal, is there any threat of trouble, and what's the solution.
This plan will make you wonder if required research or surveys to determine market opportunities, as well as costs and inputs required for your business. Including, how the strategy and planning time must be implemented.
Lack of funds
When the business does not go according to your wishes, some of your capital is already in use while the outlook is less promising, you will find it hard to get a loan again. From the beginning you should be realistic, and run your business with capital adequacy which will last until your business running with a stable (and generate revenue).
Choice of location and marketing that are less well
Poor choice of location, such as a restaurant or bookstore you are on a narrow road that makes it difficult to park vehicles. It is as dangerous as the selection of layouts of advertising your products on the internet. Ad position is as important as choosing the location of stores in shopping areas. Online marketing should give priority to aspects of the availability and visibility, so that prospective buyers or partners can see your product clearly.
Easily satisfied
Once your planning, run your business, and gain the customer base. Do not immediately satisfied with your achievements. Always monitor the market, and identify when you should change the business plan. When the business began to grow, you will get a lot of time to adjust strategies so you can remain successful. When competitors head off to your business, immediately think of to do variations of the product or make other changes.
Too soon to expand
Once your business starts stable and profitable, it's time to expand. However, you need to treat the problem of expansion of this business as if you are starting a new business. If you want to extend the range, determine the strategic location, and who the potential customers in the region.
If you want to develop the scope and focus of your business, make sure you understand the products, services, and your new customers, as you do on your business is already running. Businesses that expanded too fast and not supported by research, strategy, and careful planning, could only undermine your finances.
Post a Comment