Recoginizing six main reasons why Ventures fail?
It is an often repeated but still alarming fact that about 8 of out 10 new business fail within the first 18 months. Even worse, this figure rises to 90 percent or higher after five years. No one enters into the business thinking about failure, but that’s no reason not to learn from the hard won experience of other entreprenuers. Sadly, many startups fail for predictable reasons, repeating the same mistakes made by others and before them. Here are few all-too-common errors to avoid.
Lack of Strategy
When starting a new venture, it is natural to be fired up with enthusiam. However without a realistic plan of where you’re heading off with all your efforts could be pushing you in the wrong direction. Inevitably, events will conspire to throw you off course from time to time, but it is important to have a clear destination in the mind, and a realistic plan for how to reach it.
One of the greatest joys of running your own business is not having to answer to anyone. Without this responsibility and oversight, however it is easy to lose discipline. If you are going to be your own boss, you need to act like one and push yourselves towards results, just as you would to any employee.
Closely related to maintaining direction and discipline is having a proper sense of focus. When building a business, many exciting opportunies may rise, but it can be a trivial mistake to follow them all. Concentrate on your core mission, and don’t allow the excitement of the moment deflect you too far from your primary aims.
Few business are insanely profitable from the get-go. Every entreprenuer willl need a buffer of cash to see their enterprise through the first few months when their money is tight, and this needs to be planned for carefully. Just as important how personal finance is, can you support yourself and your family truly during the inevitable and lean times, or will a run of poor proits threaten private financial turmoil?
Not Filling a GAP
For a enterprise to succeed, it needs to fill a gap of some kind. Whether you offer a unique product, superior service or unbeatable prices, you need to decide on what sets you apart from the competition, and ruthelessly pursue and maximize that difference. Following the crowd will get you nowhere.
Even the most visionary of the entreprenuers will quickly come struck if they try to drive blind. While you need to avoid so-called paralysis through analysis, obsessing over figures rather than getting things done. It is vital to keep a close eye on how major aspects of your business are performing. Whether it is market research, competition analysis, or monitoring costs, of running a business, without ready access to reliable information your venture will likely to be doomed.
Success is the confident intention when starting up any new venture. However to build a long lasting and profitable business without boosting those fails, it pays to heed the mistakes for previous entreprenuers.