6 Reasons Why We Often Fail Starting A New Business
Business is a common source of income everyone engage in to earn profit and to survive. Though business can be seen or done in many ways and many who engage in a business of his choice would have a personal remark on the present condition of his business.
Business failure can come when the required necessities for that business is lacking. That is when you discover you can no longer cover up most cost or maybe you’re making huge losses which your profit can no longer cover up. This is more frustrating especially for a new business.
New businesses needed to be strategize in other to overcome the market and this is not an easy going process because most thing you come across in such business would be new especially coming across challenges and this could be frustrating. When means to overcome most challenges faced by business owners fails, the business which can’t stand firm to such challenge would close down.
Reasons Why We Often Fail Starting A New Businesses
1. Lack of self-trust
This are business owners who don’t believe in their capability towards the business they choose. The i can’t do this type. Moving alone with such taught has already weaken the ability to succeed through such business.
Self motivation is one key factor to succeed. When one’s mind isn’t made up towards the kind of business, definitely, failure has already started and resources used for such business will be wasted. Sometimes, people might not know a kind of business to engage in, even with business which may require little capital to start up and stll gain better profit. That alone can kill ones chances of succeeding.
2. Low Business Experience
Experience is best necessity for a business success. Working on an entirely new business without any previous experience of that business is one factor for failure. Most challenges might not be clearly known to you and such challenges might even grow without control, and that’s why its not advisable to just venture into any business that looks more profitable without having perfect understanding and experience on how the business operate.
Let’s say you want to open a new business which looks more profitable and you don’t have a work experience of it, you can still work on such business and be successful when you employ and work along with a well experienced workforce who can cover up or avoid common mistakes that could effects the business or you can spend some months working as an apprentice to gain experience as well.
One good thing about experienced employees is that they give better suggestion on the growth of the business and recommendations to avoid common business issues. So to say, when running a business without any work experience even without an experienced workforce, then their is more tendency of business failure.
3. Low Start Up Capital
When you don’t have enough capital to start up your desired business, then you might not get to start or even last long in such business until your the required resources are acquired.
Depending on the type of business one venture into, some businesses can startup without the complete needed capital and later as time goes on, one can make profit and add back such profit to the business to completely structure the business and improve to the required standard. But how easy and effective could that be? or How long could that take??. It’s just like a table standing with 3 legs instead of four. Its rear to such table to stand actively strong when different objects are placed on it, until it completes its four legs to be strong. That’s how difficult it could be while running a business without the complete required capital.
4. Bad Management
When the foundation is faulty, what can the innocent do? or can i say worth doing is worth doing well (Philip Stanhope, 4th Earl of Chesterfield 1773) or other common familiar quotes.
The management in every business is like the key structure to such business. When the management actions, plans and decisions of that business isn’t favorable to the employees or to business itself, then they is high tendency of failure.
The main aim of a manager is to move along with the employees and the business itself. A misuse of the workforce make them ineffective in their work. When the management cannot effectively control its employees and business at large towards achieving common goals, then failure has already begin.
So management can also be seen acting towards their selfish interest in other to gain more benefits. Such kind managers takes major decisions which they know won’t be favorable to the business or to the employees and that could make the business fail. This is where is place my Philip Stanhope, 4th Earl of Chesterfield quote of what is worth doing well.
Where a business is located is really one factor that could effect the business. Businesses should be placed in locations on sight in order for such business to grow. Sight I mean are places where people who are of more need to what your business offers do stay or come around.
Like opening a bookshop and selling books around school areas or campuses, opening a chemist or pharmaceutical store close to medical areas etc. Most people make mistakes in this and they engage in a business without considering what their environment accepts or need most.
6. Lack of Expertise or Skilled Knowledge
Not knowing ways to handle the business is another major issue. In business which requires skills, one has to pass through series of training within a specific period of time though depending on the type of business.
When business knowledge cannot be learnt or perfected, the best idea is to employ workforce with good skills towards that business or an expert to manage such business.
Failure will come when you start up a business without the required skills for such business, Definitely, failure will come.