A lot of emphases is placed on the reasons companies fail. Certain of them are genuine however others are just poor excuses. Which are you blaming?
1. Inability to write an effective business plan.
It is likely to be among the most requested. The business plans are made on anything from the napkin’s back up to hundred pages of embossed papers with leather binding. Certain plans need to be more complex than others and there’s no reason to be confused because you’re looking to start an enterprise.
Get a blank sheet of paper and make a note of details of what you intend to offer for sale; the reason why it is unique and how it functions and who, including you is going to run the business as well as how you will promote it, and also your financial projections in the near future. Do not fret about what you do not know. For instance, you could not be aware of how much your sales forecast will be. It does not matter. Write a list, instead of the expenses that cannot be avoided for the month. You’ll be able to determine what amount of your own funds you’ll need to ensure that you’re able to continue until you’ve got some clients.
2. The lack of funds
One of the biggest issues isn’t a shortage of cash however, it is the inability to use what is readily available. I was recently asked by a good friend of mine for tips on establishing an unassuming business selling bottles of wine that he wanted to bring out of France to Britain. The United Kingdom. I was aware of his character as a private person in the area of money, and so I tried not to get into the financial aspects of the company he wanted to establish. I inquired about what the profit margin was for each bottle and suggested that it could be one pound. He was able to agree that this was a reasonable assumption.
He was not prepared when I told him that he’d need to sell 1,000 bottles a month to cover the cost of renting an unassuming shop downtown.
I’m sure that increasing this amount each month would not be an issue but making it an online shop that wasn’t necessary was a poor concept, to my mind, and he was unable to get over this idea.
3. They’re in love with either the product or service
The problem is that they’re obsessed with their business. They want everything to work in a certain manner. They would like to design items that they are interested in and promote the products in a way that is appealing to their customers. If they were simply attracted by their product they’d be able to see the customers in them were, or not. It’s difficult to give up one of them in order to run the company, but it’s not as disastrous as having to sacrifice the company due to an inability to change it to meet the demands.
The most recent example can be seen in General Motors which refused for 30 years to produce vehicles that customers wanted instead of ones that were in line with the mission that they had laid out in the 1950s.