All of us needs to earn for our families and while not all would want to apply for jobs, some would take risks in putting up their own business and hope that this would get them to greater heights in the next couple of years. But how many businesses have you seen close up only after a few months of operation? It seems to be a huge risk to take especially when one would just put up a business unprepared of the circumstances.
- They chose the wrong business that they have put up. Just because he heard that Mr. X put up a computer shop and as earning quite some amount every day, he then thought that he can do as good as Mr. X when in reality he doesn’t know anything about computers. What could make it worse it setting up the business where it doesn’t seem to be profitable in the area.
- One should have a good business plan before setting it up. He should be able to foresee the real need of the people from where he thinks he would put up the business. He should think of a strategy on how he can make a difference.
- Just like blindly putting up a business which you know nothing about, being inexperienced can just flush your money down the drain.
- One should be passionate with the kind of business that he puts up. It is not enough to just put up the business and let it run on its own. Not having that passion with your business would end you up losing your money.
- We know that there is a need to make more money especially with the escalating prices of commodities. Instead of venturing to a lot of businesses at the same time, it is much better to concentrate on one and strengthen the business before venturing into another one. Not having enough focus on one business is another cause of wasting money, time and effort.
- You want to compete with existing businesses of the same nature as yours but you lack knowledge and planning. You then decided to expand hoping that you can equal or surpass the amount of money that comes into the business of your competitor only to find out that you missed certain points like right marketing and advertising, wrong choice of employees, etc.
- A business without a good customer service will never succeed. It is always a must to show how much you value the opinion of your customers and show your concern when they encounter some problems with your company. Gracious, responsible employees reflect the kind of company that you have.
- Incapable of exploring new technology which may help in the development of the business. There are seminars which can be helpful for business owners which they should not fail to attend.
- Charging an inappropriate amount, either too small or too high can affect the stability of the business. The owner should be able to weigh things before he can come up with a very reasonable cost to be charged to its customers/clients.
image credit: http://images.smh.com.au/2012/08/30/3596785/729businessfailure-620×349.jpg