In the past, there have been many statistics published that show it very difficult to start a small business and see it thrive. Because of this, many are discouraged from venturing into the world of entrepreneurship. However, there are preventative measures that can be set in place to prevent inevitable failure.
So why do new business fail? And how can you avoid the same fate?
Money issues.
This is definitely an area that a business has to be strong in so that it can survive. Starting with a small pool of money without a proven method of growing that money is risky all on its own. Even companies that are approved for bank loans fail without a solid plan to make that money to pay back and make a profit.
What is the solution? Borrow from friends and family. Raise your own money. There are plenty of tools now that help with broadening your reach for investors; such as Kick Starter or Go Fund Me.
Not enough research.
The worst thing to do is deciding on starting a business where there is no business to be had. So before deciding to sell sand by the beach, do your research. Is your product or service in high demand where you are located? Even an online business needs to be investigated to determine the worth of effort.
What is the solution? Treat your approach on starting your business as you would any school project. Study the field you wish to pursue. Figure out who your target audience is. Conduct market research to determine if your product would be sought after. Does it already exist? If so, how is your competition doing and how can you do better?
Lack of organization.
Being unorganized can be lots of things. Either your business model is not well thought out, or you haven’t done enough research to determine who would be the right hires for the success of your business. Operational decisions could be detrimental to your work productivity.
What is the solution? Don’t do the work yourself. Find someone who knows how to start and run a business. Hire a consultant. Take as many business courses you can.
Can you start a new business and thrive?
Of course you can! Just be sure to have the right financial plan in place. Study. Research. Do your homework. And most importantly, keep organized and surround yourself with individuals who know how to help!