Why Most Small Business Owners Fail

Let me give you a stereotypical view of today’s failing small business owner.

The failing small business owner is frustrated, deflated and have owned their small business for between 3 to 6 months. The reason they went into business for themselves was either boredom, flexibility or dreams of getting wealthy fast. Fast forward some months, they have made no money, are ready to give up, and are now scouring the employment classifieds for a job.

Now, let me tell you why 99% of these small business owners end up in this exact predicament. Lack of planning. Yes, that’s all it is, a lack of planning.

Planning is not as simple as the word may suggest though. There are numerous areas of small business that require planning, evaluation and research before any ball starts rolling. Small business owners must plan to succeed or plan to fail.

So how exactly does one plan for a new business success?

First of all, can you really afford to work for yourself? Self employment is a significant step and one which many small business owners do not consider. They jump in thinking the money will generate quickly. This is rarely the case, thus one must be prepared for earning little, if any income, in their new small business for some months.

The idea of having a small business is very exciting. However, unless you have undertaken your market research how do you know if there is a demand for your product or service? It may be a case of there being an over abundance of competition, or no demand at all for what you are planning to sell. Study your competition, your target market and the behaviour of your potential consumers. Make sure you know that your target market is prepared to actually buy your product. I love million dollar yachts, and would tick a box saying I want one, but there is no way I could ever buy one.

Now, are you confident that you have the skills to make your business work? Do you understand how a business operates? Do you feel confident your business idea will work? Then evaluating your business idea is of utmost importance.

Once you have completed the above steps, it will be time to plan for your business success. It is not only possible to plan for business success, it is absolutely necessary! The more you plan, the higher your chances of success will be. What exactly will you be planning?

 

  • Marketing
  • Online presence
  • Weekly sales plan
  • Budget
  • Business Strategy
  • Skills Requirement
  • Risk Management Plan

 

The last step is honesty. Admit to yourself that you may not have all of the necessary skills to make your business succeed. There are ways to obtain assistance for little cost, and you must ask for help. Reach out, join groups and continue to educate yourself.

There is no doubt that having your own business is fulfilling. However, if you are contemplating self employment and at the same time expecting your new business will deliver consistency, less working hours, more money and an easy ride, you are better off getting a job.

Article Source: http://EzineArticles.com/7041757

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2 Comments

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