1. Incorrect foundation
The number one business killer is going into business with the wrong motivation. The following are some of the incorrect motivations for starting a business.
The fact that you were fired or laid off from your previous job.
You resigned because someone at your previous workplace irritated you.
It's a family enterprise.
You were given money by someone.
I wish to amass a large sum of money.
You must be certain that God guided or directed you into the company. He'll follow through on what he's said. Deception, brutality, self-abuse, compromise, seduction, risks, demonic manipulation, and disappointment abound in the corporate world. Before starting a business, make sure you've heard from God. If you must survive.
2. Inadequate business plan:
The capital required, how it will be raised, the style of operation, the number of employees required, the source of material supply, the prospective market, and acceptable pricing will all be detailed in the business plan. When will we reach break-even? When will profit be realized?
3. Begin large:
Whatever jumps up must fall down, but whatever grows up remains upright. Allow your company to expand by beginning small. Keep things basic until you've figured out what you're doing.
4. Inability to maintain focus:
Several businesses do not devote their resources or attention to the core of their operations. You should concentrate on earning money. It is not the time to relocate to a more opulent office or purchase expensive furniture. Don't live large for the sake of a corporate image. You don't have to start with acquiring equipment; you can either rent it or share it for a charge.
5. Employed unneeded assistants:
Employees with extra hands cause additional issues. "When it comes to personnel, hire slowly and fire quickly," said one wise guy. Develop processes that are easy enough for even the least skilled employee, as well as the owner, to operate. Don't utilize your company to keep relatives employed.
6. Giving out too much credit:
Giving out too much credit and not knowing how to collect it is risky. Set a credit limit for yourself and ensure that people to whom you extend credit will pay on time.
7. Lack of awareness of customers and competitors:
If you don't know who your competitors are and what they're up to, they'll steal your consumers. Maintain a tight relationship with your clients.
8. Lack of market knowledge:
Being unfamiliar with peak season can be disastrous for business. Knowing where you can get your products or raw materials for less money for profitable suppliers is costly ignorance that destroys businesses.
9. Incorrect location:
Your products and services must be easily accessible to your potential clients. Unless you plan to build a computer village, locating a computer center in a hamlet is a bad investment. Paying three years' rent in advance is not a good move, especially when the only people who come to your premises are looking for directions to unrelated businesses.
10. Insufficient advertising:
How can customers buy from you if they have no idea what you're selling? You'll be winking in the dark, and only you will know what you're doing. Experts advise that you spend roughly 30% of your budget on advertising.
11. Inequitable pricing:
How successful you are at setting the proper price will determine the success of your business. Take your time till you find the correct answer.
12. Failure to keep accurate records:
Putting your hands in your sales / income without recording the reason for the expenditure is slowly but steadily harming your business. You won't know your profit or loss if you don't keep proper records of your material costs and sales. Accurate records are your saving grace when you need to raise funds, save money, or expand your business.
13. In capital letters:
Your firm has no future if you are ambiguous about your capital requirements. You are inviting business disaster when you take a loan that will not cover your capital needs. The business will not be profitable if the business loan is not paid back on time.
14. Insufficient research:
Any business is built on sound planning, common sense, and the ability to stay on top of the facts. Research is another phrase for keeping up with the latest information. What exactly is research? It's all about research; look into your business again and again. Expose yourself to current market trends and what your clients desire. Spend time thinking, studying, observing, and reading.
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