10 Ways to Prevent Small Business Failure6:00 PM
Inexperience, lack of working capital, additional investments , too high costs, poor selection of staff, lack of visualization of problems, ...
Inexperience, lack of working capital, additional investments, too high costs, poor selection of staff, lack of visualization of problems, lack of a realistic projection about the business... These are just some of the leading causes that can lead to a Business to fail in its startup to move from 'project' to 'reality' efficiently and profitably.
Is it possible to make all those initial failures and failures fade to make way for business success?
1- Adhere to a Business Plan.When starting your business is essential to have a well-defined business plan and adhere to it, which means defining with your team the vision and mission that pursues your company. This implies the planning and the investigation of markets, which does not mean to be flexible to the possible changes that occur. On the way.
Here are seven tips to write a perfect business plan you can take account off.
2. Keep finances clear.Do not let, like many companies, financial problems bring them to ruin. Such common mistakes as not checking the financial statements, spending too much or too little and not having enough cash, are sufficient to cause the disaster.
3. Assume the role in your business.If you do not have experience in management, it is essential to rely on training as one of the fundamental pillars that will help you overcome all difficulties. Let yourself be advised and put into the hands of professionals through a quality Business School with which to achieve the desired business success.
Also read: 6 Things to Consider When Starting a New Business
4. Avoid Marketing Problems.The biggest problems that small entrepreneurs face have to do with marketing: they do not define their target market, they do not adopt new technologies (social networks, email marketing, etc.) or just do not make themselves known enough. Give importance to commercialization, so you do not fall into oblivion.
5. Do not neglect the customer or the quality of the products or services.The best attention that can be given to a client is through monitoring their exact needs, knowing their opinions and providing products and services that meet their requirements at any time. If on the contrary, you do not consider them, you will lose contact with those who, in short, will make sense to your business, your customers.
6. Encourages communication between the work team.The communication must be fluid at all times when communicating the ideas and projects is generated confidence and improves the work environment, as well as productivity. If on the other hand, the members of whom you have entrusted to carry forward your business idea do not know or communicate with each other, the result can be disastrous, even in dealing with customers.
7. Do not stray from your business.It is okay to delegate to other people to perform certain tasks, but it is better that during the early stages of the business, be yourself to shape your project, always letting you advise and help those around you. Do not pretend to do everything alone but do not give up as if everything is ready to fly.
8. Do not be afraid to invest.Sometimes, when the business is generating profits, it is no longer thought of investing, but of making money. Do not hesitate to spend, for example, in the expansion of your business; Is an advisable risk that must be run for its growth.
9. Apply the primary keys of the entrepreneur.Although there are different ways of an undertaking, they all share a series of key elements that shape the entrepreneurial mindset and augur a hopeful future for the company at hand. There are four fundamentals: the ability to take risks; Management of error and humility; Observation and creativity.
10. Accepts when you are in a backward market.It is vital to devise a plan that gives continuity to the business. As an example are bookstores, music stores, printing shops... In identifying in which segment of the market the trend change occurs, measures will be taken to maintain and penetrate these new trends.
In any case, creating and running a small business is not easy, and the opportunity to fail is presented every day. So, do not hesitate to start the Decalogue of advice that we give you here to prevent your business from wrecking in a sea that is increasingly troubled by the competition, the crisis and the financial difficulties that surround us.