According to the data 30% of new business fail during the first two years and 66% during the first five years. Reasons are numerous, but not every new business need to fail. If the owners implement appropriate planning, financing and provide flexibility, then they have better chance to survive. We will present you some of the biggest mistakes owners make and help you overcome them.
Owners don’t research the market
For example, you always wanted to open the company and you finally have the necessary funding. You are driven by the blind desire, and you overlooked the fact that area in which you are planning to open the company is already crawling with businesses similar to yours. In this case, you will have a hard time making a break through. This is one of the mistakes that will cause you to fail. You need to find a business that will be a new opening, instead of convincing people to spend money on your product.
If you want to have a successful business, you need to have a solid business plan. Your plan needs to contain realistic goals, but also you need to include a step of who you are going to achieve them. Problems will certainly appear along the way, but your business plan must be able to resolve them.
Once you have created a plan, you must follow it. If you start changing something or spending too much, you are going to fail. This is only possible if you find the plan inaccurate and you need to change some strategies. But, in this case, you need to rewrite the plane and create a one that will suit your needs. It is better to change right at the beginning than to change the strategy of your business. Because it will cost you more money. If you make more mistakes, you will have bigger chances to fail.
You don’t have enough funds
For example, you have started a business, along with the way some problems occurred and things aren’t going according to plan. You had some small capital; your business is now surviving, and you cannot ask a loan. You need to be more realistic at the beginning. Start your business where you will provide enough money, so you can overcome all the difficulties and problems. You need to have sufficient amount of money until your business is running smoothly and you have actual cash flow. If you are trying to stretch the money at the very beginning, this means your business will never grow, and you will have difficulties to survive.
Bad location, bad marketing, and bad internet presence
If your job depends on location, then you need to have a place where there is a lot of foot traffic. The internet is equally important as the location. If you don’t have a website or page on some social media, then that is same like you are invisible. Online presence will provide people to get familiar with your services and products. They can see what you are offering and get them insight in your business.