5 Reasons Your Business Is Failing
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The one thing that you don’t want to think about when it comes to opening a new business, is the possibility that it will fail. However, with almost half of all businesses failing in the first five years, it’s a very real and very stark possibility for your company. I don’t say that to demoralize you, but simply to remind you that you have a long road ahead of you and you have to be prepared. Plenty of first-timers who run their own business have great success, so don’t be put off by grim statistics! The good news is that if you can understand exactly why your business could fail, you’re going to be in a much better position when it comes to sailing through those first five years on the tail of a profit instead of a loss. If you do eventually fail in your business ventures, you will at least be able to learn something from the failure and be more successful when it comes to trying again. You can also take comfort in the fact that you could have a much better success later on. On that note, let’s look at five reasons your business could be one that fails.
You’re Inexperienced. Everyone knows how to own a business before they’ve owned one, in the same way that a football fan is the best manager when they’re not actually managing the team. There is a good reason that experienced professionals go the distance and business newbies don’t, and it all lies in the number of years’ experience that has been accumulated. Being able to draw upon past experience can be so important in a business arena. Even if you haven’t run your own company from start to finish, managing your own team can count toward your business experience. There are decisions that are made by owners that a manager wouldn’t know about, so no matter how much experience you can substitute for owning your own business, you won’t know what it is really like until you’re in throne yourself.
No Risk-Taking. Being conservative in life isn’t a bad thing. Being conservative in business could be the kiss of death for you. There is a certain level of risk that business owners need to take and first-timers are often not willing to take those risks to succeed. A lack of confidence for a newbie business owner takes over, and this is where having the right mentorship is important. You need to trust outsiders that you work with. For example, if you’ve decided to outsource your website development and design with a company like Maxburst, you will be getting advice about your image. Take this advice on board as well as the advice from every other team leader that you have in your business. You need to go beyond being conservative and take the risks that look scary; no one ever got anywhere by being safe.
Poor Network. A newbie business owner is green in the industry and no one yet knows your name or much of a force of nature you are. You need to have a strong network when you start your own business. The ultimate success of your company is going to come right down to who you know, as that’s how new doors open for you. Networking is hugely important in business no matter how experienced you are, so start holding and attending networking events. Approach the local businesses around you in the community and reach out to local media so that you can get your name and your purpose out there for all to see. Building relationships with suppliers and clients can help your name spread, and the more recommendations your company gets, the better your trust rating with those looking for your products.
Overexcitement. Opening your own business is exciting, we know that. The thing is, excitement can lead you down the wrong paths when you are starting out and it’s very easy to get swallowed up in a thousand different ideas instead of focusing on just one thing and rolling with it. The other issue is that you could be so keen to get your name out there that you simply become too impulsive with your decision-making, and you don’t think outside the box. Whenever you make a decision with your business, you need to have meetings with mentors, partners, accountants and team leaders to gain feedback. You haven’t yet developed the instincts that you need to run a business properly, so don’t try to go too far too fast. Take your time; it’s what you’ve got.
You’re Not Taken Seriously. It’s a sad but true fact. When you first go out into the business world, no one knows who you are. People will see you as green, new, a baby in the industry and it’s a hard image to shake. Building a good trust rating with clients and customers is vital for the success of your business. The insecurity can come from investors, partners, suppliers and clients alike; you are new in the business and they need reassurance that you know what you’re doing and that you know what you are talking about. Don’t be put off. You can’t be afraid of making a mark in the world and that requires you to be determined and ambitious, and neither of those things are bad. Less experienced entrepreneurs are not as successful as seasoned business leaders, but that shouldn’t hold you back.
It may seem like a lot to take in, especially when your business is already on a slippery slope to negativity and failure. There’s one thing that you should know though; your business failing is not going to be the end of the world. For every failure that you experience now, you can regroup and make a comeback bigger and better than you were before. Don’t be afraid to start again if you have to. Perfection doesn’t happen overnight, and continuous learning is ahead for you.
