#5 reasons businesses fail at inception is timely, because, the world of business is a dynamic one and as such requires not only a dynamic approach to it not to record failure at inception but also to a large extent elements of persistence, consistency, and doggedness.
Definition of Business
It is the act of meeting a need(s) while at the same time getting rewarded, the reward may either be measurable or not measurable. Measurable in terms of direct monetary value and not measurable in terms of goodwill and other privileges.
Before going into any form of business, you need to do thorough research. What are the needs that existed around me and what solutions can I proffer to meet the needs. Please note that the solution you wish to proffer must be in line with your passion.
Your passion is the driving force that moves every other thing in the life of that business. Your money creates the body while your passion gives life to the business. Business fails when there is no proper strategy and plan in place.
Ask yourself the following questions:
- Why am I going into the business?
- What new thing am I offering because surely you are not the only one in that line of business?
- Who are my competitors?
- How much information do I have about the business?
- When do I launch out?
- Why am I going into the business?
Reasons businesses fail at the inception stage (first three years) can also because of the misplaced priorities of the business owners. Don’t let the making of money be the number one reason you are going into business, for instance, if the money doesn’t come early you are therefore, bound to be discouraged and chicken-out easily. So, tell yourself the following:
- I am here to solve a problem
- I want to build a system
- Monetary returns is not my primary aim.
- To be the best is my utmost goal
- I am here to turn my passion into a product (service)
A Study has it that reasons businesses fails at the inception did so as a result of wrong startup reasons, this, therefore, implies that the success any business records depends to a large extent on the motive for its establishment.
What new thing am I offering?
Whether it is a new or existing type of business, there is something new that can be introduced. Doing the same thing over and over again will continue to give you the same result, but when done differently, you get a better result.
That is why organizations invest heavily in rebranding and repackaging, others do sales splash promotions. You must never go below the current standard obtainable in the market. In the world of the automobile, for instance, we discovered that the brands keep improving on the previous model produced.
What customers are looking for is the best quality products/services at the best possible prices available, hence, your promotions/advertisement should be centered on the new thing you are offering. So, take out time to carve out a niche for yourself, and after that, you can begin to enjoy.
Who are your competitors?
This is very important. Your competitors are those already existing or will still meet you in operation, as a result, your focus should be those in your same line of operation.
Firstly, Find out how they started; secondly, know their challenges both present and past, Thirdly, know their strengths and weakness, and finally, know the market share they control.
You need to also know who your competitors customers are and why they have remained loyal to them. Researching about your competitors could also involve; the price they charge, their distribution channel, and in addition, their members of staff.
Therefore, next thing is to act on the competitors information available to you, what you have learned and can do better, what you are presently doing better than them, and what they are doing the same as you.
If you are sure your competitors are doing better than you, you need to respond and make some changes. Try to innovate and not imitate, now you have the information, do it better, and add more value.
How much information do I have about the business?
Having a good knowledge of the business cannot be overemphasized. A deeper understanding of the products/services is essential for your business success.
Training and retraining must be taken seriously at this level; that is to say, this will expose the business owner to grey areas that need clarity and understanding, trainings might include but not limited to the following;
- How to write a business plan
- Business operations and management
- Business marketing
- Starting and growing a business
- Small business tax. Etc
More over, when do I launch out?
It is crucial that a checklist is done and followed seriously in other to know when to make the first move. So, lets do a check-list;
My primary reason for going into the business has been established, I am offering something different from my competitors, I have adequate information about my competitors, I have also got detailed and strong information about my line of business. So, you are ready for an adventure.
For example, a Quick Service Restaurant (QSR) launching out during a special holiday celebration, likewise, a superstore launching out with a special sales promotions.
Adhering to the above reasons businesses fail at inception will ensure your business will not any setback, as a result, success is achieved
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About the Author
Shonekan Oluwasseun is an entrepreneur, online marketer, and a content writer. A former customer care representative at GLOBACOM.
He is the CEO of FARM to ARM, an agro-food packaging enterprise in Lagos, Nigeria.
A writer by day and reader by night. Visit shonekanoluwaseun.blogspot.com for more