Nine out of 10 projects fail because the idea is not viable.
Entrepreneurs often open the business before they do the job they should do in advance: conduct market research and planning. Make a list of actions carried out so far and if some point coincides with the following errors, solve them immediately.
Lack of planning
Many entrepreneurs are met with problems that could have been easily avoided if they had taken the time to write a business plan. If you do not have the dedication to write a business plan, then you probably do not have the dedication to run your own business.
Calculate the wrong niche
Miscalculating the niche market to conquer is another common mistake. Most entrepreneurs do not analyse in depth how many people have the potential to buy your product. They not have the time or money to invest in it. They imagine they will sell thousands and then sell only 10% of that projection. If you calculate wrong the size of your market, your projected sales will be wrong.
Not knowing the cost structure
It is always more expensive than it appears to be, and you always have to sell cheaper than you had thought. A large number of entrepreneurs define the principal amount based on a sales forecast based on a mistake and create an operating cost without enough capital to start the operation.
Not having enough capital
Three out of four businesses fail because they run out of cash. This stems from a poor initial planning. Business owners are so caught up in day-to-day management of business operations and do not take time to send invoices to customers. Monitoring your cash flow is the most important thing you can do for your business.
Incorporate partners that are not needed
Often when one seeks partners needed to invest, many do not contribute anything further than money to get 50% of your business. They are a burden if they do not add value. Before naming partners, think twice.
Hire people for convenience
Many entrepreneurs hire their relatives or friends without knowing or objectively analysing their true abilities. They are often the wrong people. In addition, it is difficult to fire a relative or good friend. Please also note that in the initial stage of your business, you need people with the ability to perform more than one task.
Little flexibility to change or innovate
It is very common for the founder only to be focused on activities they know and to pay attention to one part of the business and neglect others because they do not enjoy that area. If you want to be a successful entrepreneur, you must be a very organised person with ability to prioritise important tasks and concentrate on what will bring money into your business.
Putting aside the prejudice that no one will do better than you is the first step to place confidence in your employees. Even the best entrepreneurs cannot do everything. It is important that you learn to delegate and let your business grow. If you’ve hired good people and you’ve trained properly, give them freedom and the results will surprise you. If your employee is unable to do the job, you may need additional training or you must locate an another candidate.
Unwilling to change or innovate
Times change. Sometimes, your business needs to change to keep pace. The fact that it has worked so far does not mean you should continue that way. Think about the businesses you have seen in the past, when the only form of advertising was an ad in the phone book. You must keep up, especially with technology, before your business disappears from the radar of your prospective customers.
Waiting too long to ask for help
Many small business owners raise their hands to ask for help when they are already in a hole and do not know where else to turn. Do not let your pride get in the way. If your company is having problems, do not be afraid to seek help.
Not having an exit strategy
You must have an exit plan. Plan appropriately if you want to create additional businesses in the future, or if you want to develop a business and then sell it. If so, be alert and willing to sell your business to a multinational. For the latest finance, tax and business news, check out thecheapaccountant now!