It has become a common fact in the business world that most businesses fail before they even have the time to kick off. Within a month or three, most entrepreneurs are out of business. A lot of analysts have come up with many things that could be the reasons behind this. Let’s discuss five failures of entrepreneurs in their first month of business.
A lot of entrepreneurs plan but mostly only for the short run. They don’t take a lot of things into consideration like ‘zero days’ and future goals. Planning for business has to be careful, methodical and strategic. Furthermore, planning doesn’t end the minute the business is established. It is rather at this point that other minor details involved in the process begin to surface. Your business plan has to be based on accurate and current information. It should also take into account calculated projections for the future.
Hostility to change
Another one of the five failures of entrepreneurs is that a lot of business men and entrepreneurs are rigid in their thinking. Once they have their mind set on a particular strategy, it becomes impossible to steer them towards a different direction. This is the reason why many small businesses are sinking fast. You need to be open to changes that may occur in the market. Be ready to adjust to the changing conditions of the market. Flexibility and adaptability will grant your business longevity.
A good is vital for sales in a business. You don’t just set up shop in a haphazard location. There are certain locations that are more favorable to certain businesses compared to others. You need to ensure that the location of your office/shop is suitable for business. A good location can boost business while a bad location will simply result in hardship irrespective of management.
Being oblivious to work force need
Understanding your work force is another way to ensure that you stay in business for a long time. Your work force is the backbone of your business and if it suffers lack of any kind, it immediately reflects on the business. Don’t stretch yourself more than you are able to handle. Ensure an efficient management system that will oversee your work force.
Underestimating the competition
This happens a lot. People tend to underestimate the competition, or in most cases they don’t even understand who the competition is. Competition might be someone in a different line altogether. Someone who sells garri might want to think of only garri sellers as the competition when in actual sense even a semo seller might be a competition since semo can easily replace garri. Try and find out who the competition is and when you do, do your utmost to stay ahead.
In all, keep a positive vibe about you and avoid these five failures of entrepreneurs in their first month of business. Positive vibes generate and attract positive results. Always hope for the best no matter what the market situation says.