Wondering why you’re failing at business? then don’t worry anymore, here are some of the reasons
1) Starting the business with the wrong objectives
You should never start a business for the sole reason of making a lot of cash quickly. There is also a misconception that if you start your own business, you will get more time to spend with your family and that you will always answer to yourself. But this might not be the case. You should start a business because you’ve got a deep passion for what you want to do and firmly believe that your products and services will respond to the needs of the consumers. You should have a firm understanding of why your product is unique and why people will buy from you and not from your competitors.
2) Lack of proper planning
Success in business can be achieved by careful, systematic and strategic planning as well as hard work and determination. According to Roberto Robles, the CEO at KatRank, most small businesses fail due to a lack of proper business planning. A good business plan needs to be realistic and accurate. It should contain all aspects of the business such as the unique selling proposition, competition, workforce needs, potential challenges and solutions, financial details and so on. You should prepare detailed and realistic estimates of revenues and costs for three years. Determine if it will all be worth the effort several years down the road before you invest your time and money and your friends and family’s money.
3) Poor Management
Many studies indicate that poor management is the primary cause of business failures. Most businesses often lack the proper expertise in vital areas such as marketing and sales, finance, human resources, procurement, production, etc. You need to put the right management team in place; a team that can study, plan, organize and control all aspects of business operations. Recruitment can be an onerous, expensive and time-consuming task. If you have open or weak areas in your management team, consider the use of contractors/consultants to strengthen weak areas or fill vacancies. There are many benefits to using consultants both financial and effectiveness related.
4) Insufficient Capital
Most business owners tend to underestimate the amount of money required to run a business and end up operating with insufficient funds. Others may also expect unrealistic profits from the sales. Remember, the customer determines the price, not you. Therefore, it is essential to establish the actual amount of funds you will require to start and run your business. In the case of very early stage pre-revenue companies, it is essential that the management team maintain their focus on the first release of a saleable first version of the product. You need revenue to survive.
The above reasons could be why you’re failing at business and you need to be keen to improve!