MOST REASONS SOME NEW ENTREPRENEURS FAIL 1 & 2
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There are so many mistakes new entrepreneurs make due to inexperience. It is even discovered that new businesses succeed as much as they fail. Most of these businesses fail because the entrepreneurs failed to learn from the mistakes of others. However, this piece seeks to outline the reasons new businesses fail and how to avert them.
REASONS TO CONSIDER:
1 No intellectual property.
2 An inexperienced team.
3 Underestimating resource requirements.
4 Not enough marketing.
5 Giving in too early.
IN DETAILS
1 No intellectual property.
As an entrepreneur seeking investors and a competitive advantage against your competitors, there's need for patents, copyright and trademarks registration. You equally need to include a non disclosure agreement to keep your trade secrets from your competitors and the general public.
Without this protective measures, your ideas could be hijacked by a smart investor and even improve upon it to outsmart you in the market place.
2 An inexperienced team.
The team you work with matters a lot if your business must succeed. Starting up a business shouldn't be done with inexperienced workers, even if you can't afford to pay for many of them, you can engage a few experienced and a few inexperienced to balance up. The experienced workers would bring their experiences to bear in your business, thus influencing the inexperienced ones to grow.
3 Underestimating resource requirements.
In business startup, cash funding is the major resource. However, other resources like location, office structure, industry contact, etc. are necessary. If an entrepreneur mismanages his funds on other things, forgetting these key resources, he may end up stagnating. Also, it is advisable that if you're working while trying to startup a business, you should remain there till you have enough cash flow before quiting to concentrate.
4 Not enough marketing.
Marketing strategies that is effective really help a business to grow. You need patronage to make more profit, thus you need to strategize well to make sales. Without effective and innovative marketing across the range of media, you won’t have patronage. You need to advertise your brand using all available means to attract customers. You can increase your brand awareness by giving out customized item, organizing social media contest and rewarding the winners, organizing a referral programs and other programs to help you attract sales.
5 Giving in too early.
Business starting and staying in business requires a lot. There are challenges that may surface without you knowing. All you need is wisdom to keep going even in the midst of them all. Entrepreneurship involves tedious decision making. You need to be well prepared for such decisions.
Source
There are so many mistakes new entrepreneurs make due to inexperience. It is even discovered that new businesses succeed as much as they fail. Most of these businesses fail because the entrepreneurs failed to learn from the mistakes of others. However, this piece seeks to outline the reasons new businesses fail and how to avert them.
REASONS TO CONSIDER:
1 No written plan.
2 Slim or no revenue model.
3 Limited business opportunities.
4 Can’t execute.
5 Too much competition.
IN DETAILS
1 No written plan.
Moving without knowing the direction of where the movement heards to, is a worthless movement. Without a written business plan, the business virtually has no direction, and is bound to fail in the process of time.
When an entrepreneur disciplines and sits to write down a business plan, he actually understand how and ways to translate his written plans which are his ideas into a successful business.
2 Slim or no revenue model.
There should be a proper revenue model for your business in order to be able to offset operating costs. Some entrepreneurs go into hire-purchase, if such business is then used for charity work, them the entrepreneur is bound to fail because he is expected to pay back to the company he got the product from. Ensure that you separate your capital from the income. It's not every amount you make sales and get that's your profit.
3 Limited business opportunities.
An entrepreneur should know that it is not every business that actually makes it. Some fail due to the location, some due to mismanagement and so on. But generally, it's not everything that people see that they patronize.
However, before making a move to startup a business, you need to go into a thorough market research to be certain that what you'll be bringing on board would be patronized where you plan to site it.
4 Can’t execute.
Starting up a business and staying in business are two different things. Starting up is not an issue, but staying in business is where everything lies. Entrepreneurship involved making some hard decisions, taking risks and lots more. You cannot succeed if you're not fully prepared for these. In entrepreneurship, you need to like even the things you were hitherto allergic to. It's not every time that you'll be comfortable. You need to prepare for these to be able to execute your plans successfully.
5 Too much competition.
Going into an already saturated market can make your business fail, if you don't take time. Where you site your business as well as the business itself matters a lot. As a new business leader, you shouldn't expect people to leave their customers just to patronize you just like that, except there's what you do that attracts them. So in order to succeed in an already saturated market place, you must add value to your products or services, or better still look for what is scarce around there to specialize in.
Thanks for reading!
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