IF YOU ARE IN INITIAL STAGE OF BUSINESS, THIS ARTICLE CAN BE A LIFE SAVIOUR FOR YOU & YOUR BUSINESS!
Starting a New Business, you woke up feeling excited, looking forward to taking small steps to shape your dream into reality, and love what you are doing, and could not wait to see it all come together. Words cannot describe your feelings at that time – you are excited, happy, it’s your first venture as a business owner. Now what! A month or so later things have finally started to make sense, and boom party is over – it’s all crashed. The harsh reality is when you fail that comes as a huge blow to your confidence, self-esteem, and most importantly, to your dreams.
Businesses have a very high failure rate in our country with as many as 8-9 out of 10 failings in their first three years, many of you have heard about 1000 Days golden rule of a business and your business is not able to survive in that period.
The reverse side of the coin is that around two-thirds survive and some go on prospering and expanding. Although almost every business is unique in its own way, then why is it that so many of them fail when they are so vital? From the invention of new products to the creation of higher personal income, small business is responsible for many positive aspects. Research shows that the main reason for failure is the Low Level of Knowledge that plays a vital role in the demise of startup businesses.
01: Ignoring The Operational Part
Without proper alignment of operational strategy, your business will face problems. Unfortunately, many businesses and especially startups underestimate the importance and value of effective operations management in creating quality product and brand power.
02: Research And Development
Money Is Not Everything concludes: There is no discernable relationship between R&D spending levels and nearly all measures of business success including sales, growth, gross profit, operating profit, enterprise profit, market capitalization, or total shareholder return.”R&D is a type of systematic activity conducted by a company, which combines basic and applied research in an attempt to discover solutions to problems or to create or update goods and services.
03: Failure to Adopt new Paid and Useful Technologies
Many business owners do things the old-school way when it comes to gaining customers. A Survey says that – 65%+ of business owners don’t have a business website, People are just afraid of technology and don’t realize how simple or easy it could be, having a website is like having a business card, purchase of a domain name, a site with basic business information, and search engine optimization can now be done at very minimum cost, and that expenditure should be part of the start-up costs.
04: Lack of Legal Knowledge
Nowadays, It’s a major issue that legal knowledge about trade among the start-ups is very poor. Not few but many businessmen haven’t visited any legal courses. Their knowledge about labor regulations, insurance, environmental hygiene, labor safety, taxes, and trade contracts with foreign firms is very vague. Knowledge of the law is of particular importance for the leaders of business and industry today. Everyone makes mistakes, but in the world of litigation, even a small oversight can lead to class-action lawsuits and tremendous financial expenses.
05: Lack of Banking and Finance Knowledge
Many business owners and start-ups have very little understanding of financial services which requires in day to day business. Banks and other institutions are spreading information for consumers with credit opportunities—the ability to apply for a personal loan, CC/OD Limits, credit cards or use credit cheques to pay other credit balances,—and without the proper knowledge or cheques and balances, it is easy to get into financial trouble. In fact, the lack of financial understanding has been signaled as one of the main reasons behind savings and investing problems faced by many business owners
06: Hiring Wrong Team Member
Your business loses more than time, money, and effort by recruiting, hiring, and training people who perhaps shouldn’t have been brought on in the first place. Sometimes candidates can have great CVs and interview brilliantly but may not be the right fit for the role. So how do you know if you’ve made a mistake? There are some warning signs that can indicate major problems down the road.
- It’s important to take a look at how a new hire interacts with their fellow team members. if you don’t see your new hire doing any chatting, it might indicate that they’re going to have problems working in teams, or they’re not planning on staying at the company long.
- If an employee is repeatedly making the same mistakes, It could be a sign of inattention to detail or inability to learn from mistakes, or it could mean that they’re simply not paying attention during training.
- When an employee asks questions, they’re showing that they are interested in success. If they don’t ask questions, it could be a warning sign that they think they know everything about the role already.
- If an employee is always waiting to get additional training before they move on to the next step, they’re not showing the traits of a star performer.
There’s a lack of professionalism if is often late, calling sick, or taking extra long lunches. If this kind of thing is happening in the first three months, what will happen after three years?
07: Avoiding Mentorship
Mentors are one of the most valuable resources every businessman should have access to. A good business mentor, with a good record, will be able to provide you with the right training, system, coaching, and everything as you will need to reduce your learning curve and get you going as quickly as possible. Mentors serve as advisors and role models for every businessman. They share their knowledge, experience, and a network of professional contacts.
The mentor’s guidance can help you to develop your skills, achieve career success, and maintain satisfaction. To know more you can also read my recent article “How Mentor is Business is going to Change your Business” http://varunsurana.in/mentor-business-going-change-business-strategies/.
08: Wrong Marketing And Sales Strategies
A marketing strategy is the backbone of any business. Technology has opened up the business’ reach to millions, and maybe billions, of potential customers. How do you sift through the masses to find your target audience? More than that, how do you get them to buy into your products or services? But, due to a variety of reasons, businesses tend to go for flashy strategies or outdated ones to market their products. This can negatively impact sales as well as the reputation of the overall business.
Sharing with you some major points were your business goes wrong in choosing your Market Strategy —
- Avoiding Internet Marketing
- Not putting updated information on your website properly or regularly
- Neglecting SEO
- Lack of marketing expertise
- Choosing the Wrong Direction in Marketing
Don’t be afraid to sweep floors or wash dishes. Think of it, find a mentor for your business who guides and helps you to reach your business goals. Mentor guide and train you to tune your business in the right direction and to reach your business goals without any lack in this new era.
If you want to understand the basics of running a business, take a look at the “SERVICE” section of our website. We provide the best curriculum every small business owner needs to know.