Seeing businesses go down the drain really breaks my heart. Many business owners keep on wondering why they are failing and unable to break-through?
I my humble opinion, the following are the main reasons of why most new businesses and start-ups fail:
- No Planing
Business without a strategic plan is like a blind guy walking down the street without something to lead him in the right direction. You need to have goals, to understand the world around you and to know how things works before entering the market - Bad Marketing
You might have a “Great” product or service but you sell less. Your competitors might have a “Less Quality” product or service but they sell more. What is the secret then? I can say: “Packaging”. Yes, it’s all about how you present your product and how to create a buzz around it. This will increase the chances for you to sell more and for your business to live longer - Hiring The Wrong People
When it comes to hiring the right employee, you need to look for key things in that person: Personality, Qualification and Experience. Hiring a respectful person with a good personality who is educated and well experienced will lead into “Innovation”. In some countries, I have seen a weird trend. I have seen companies who totally depends on interns and fresh graduates to do business by putting them in the front line! This is cheap and unprofessional. Would you trust a company that send to you a 20 year old guy in order to sell you a product? I don’t know about you, but I would not.
Don’t get me wrong, I am not saying you must not get fresh people to work for you, but don’t risk putting them in the front line. Have a mixture of mature and fresh blood in your company - No Patience
The problem with most newly established companies that they want to “grow big” and to do “everything” in a very short period of time. I could tell in less than a minute if the person on the other line is providing a professional service or not by simply asking few questions as follows:
a. Do you have a company profile?
b. How long have you been in the business?
d. Who are your key clients?
e. Do you have a portfolio?
f. What is your methodology or approach? - Bad Budget Management
You may require a huge budget or a small one, it all depends on the type of the business you are running. To me, neither is important as long as you know how to manage it. Over-spending or Under-spending will lead you into troubles. You must smartly spend your money through the most effective channels that give the highest ROI
The bottom line: Plan well, do smart marketing, hire the right people, have some patience, effectively manage your spend and you shall make it.
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