Reasons why Businesses Fail

There are many reasons why businesses fail and here are some of them.

No Proper Planning
Having a business plan will give you an insight if the business will succeed or fail and will give you an advantage in planning for a proper strategy. If you are having a hard time creating a business plan then this business may see failure even before seeing a glimpse of success.

Lack of Market Knowledge
Having knowledge on your market will give you an insight on what will sell to them and how to sell it. This is also necessary in preparing for the 4 P’s of marketing. Knowing your target market will give you an idea how much to price, where to place, how to position and what sort of promotion will they respond to.

Non-profitable Business
IF at first you have prepared a business plan you will have an idea if the business is profitable or not.

Being Stagnant when there are Changes
Being able to react quickly on changes on your competition on your target market will ensure that your business is up to date and if not it will be behind on the fast-paced environment of industry.

Being Everything for Everyone.
Having a niche market will ensure that your will have a loyal and fanatic customers. Being everything for everyone will give you a very thin line on focusing your marketing budget and communication efforts.

Dependence on a Single Customer.
It’s not a bad business practice in obtaining a niche market but sometimes there are changes. After you have established your share on your niche market the business must not be complacent instead try to develop new product or service that will cater to new market while maintaining your good relationship with your current customer.

Published in: on December 9, 2008 at 5:49 am  Leave a Comment  
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Starting your own business

Many people would like to put up their own business someday. If you are thinking of having one be ready first with an overview on the process of starting one.

First: You have to assess first if you have what it takes to be an entrepreneur. Do you have the traits and mind of a businessmen?

Second: If you think you have what it takes to be entrepreneur ask yourself also if you have a business idea that will make it.

Third: After you have come up with a great business idea it’s time to do some research on your market.

Fourth: Plan your business. Write a business plan – this will put solidity to your ideas.

Fifth: Register your business and organize it. Register with government agencies concerned with your business. Organize your space and staff.

Sixth: Finance your business from your personal savings and if you don’t have enough get help from families and friends or consider taking a loan.

Seventh: Produce your initial product or put together a list of services.

Eight: Launch your business and manage it well.

What do you think? Does it sound easy?

Published in: on November 11, 2008 at 3:46 am  Leave a Comment  
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