Why some entrepreneurs fail in business

byNancopher

106 followers

8 years ago

Are you growing in your business Or are you always getting started? Some entrepreneurs do not know what they do wrong that hinder them becoming successful entrepreneurs.

"According to a study commissioned by the U.S Small Business Administration(S.B.A), one out of three new small businesses fail after the first two years" "The same study showed that more than half (56 percent) fail after the first four years. Another statistics shows it that " 70 percent of projects, 80 percent of first businesses and a whopping 95 percent of product launches fail to meet up their targets"

Here are common causes of entrepreneurial failures that are avoidable in order to achieve great results.

NO DEVELOPED BUSINESS PLAN

Some entrepreneurs operate businesses without developing a workable business plan. Businesses with no clear plan, no clearly defined goals are bound to fail. A popular quote has it that "If you fail to plan, you plan to fail."Well developed business plan is a critical component for a business success. A business person must be proactive and able to promptly react to changing circumstance to avert failure or losses. Keeping daily records of activities is important to monitor progress.

INSUFFICIENT FUNDING

Having sufficient fund to do business, run overhead expenses including paying employees salaries make a world of difference in accomplishing set goals. A business must have cash flow to be able to run and offset expenses.

LIMITED STRATEGIC THINKING

A successful entrepreneur is one that plugs in strategic thinking, who has a mastery knowledge of the line of business he or she is engaged in. Some entrepreneurs engage in lines of businesses they have little or no knowledge about. For instance, who wouldn't know it is a wrong non-profitable decision to market products that are biodegradable if one does not have a cold room facility knowing fully well there would be losses to be incurred from the perishable goods just within a short space of time? It can only work where there is constant electricity for refrigeration of items. Again, who wouldn't know citing a business on a less crowded location will not boost sales?. Thinking strategically well helps businesses succeed. An enterpreneur must invest in productive profitable ventures for successful business outcomes.

GOVERNMENT REGULATIONS

Government policies, rules and regulations may not provide a conducive environment that will help entrepreneurial success. As such doing businesses that have lots of government regulations and restrictions wouldn't help out. One should rather engage more in businesses with little or no governmental restrictions thus taking the path of least resistance.

HOW TO AVOID ENTREPRENEURIAL FAILURES

Do not even start off a business if the investment capital is not enough to cover expenses for at least 2 years when which profits is expected to have started rolling.

Desist from collecting loans or acquiring credit cards with high interest rates but the ones that have no interest rate or that have zero percent APR for at least one and half years so as to avoid going into debt. This is an easy way an entrepreneur can fall into debt especially if there is not enough revenue to pay off expenses. Discontinue early enough from a business that has started witnessing negative cash flow.

Have a professional accountant for your business accounting and who will discover early when the business is operating at a loss

Have a business mentor. Entrepreneurs should be willing to train on how to utilize multi- channel E- commerce tools and resources. Be willing to embrace change

Have a positive attitude. Co-ooperate with other entrepreneurs online. Diversify to fast and simple business opportunities online along side to your having a major business. Many successful business persons I know expand their businesses online by trading on Amazon, Ebay, Offer Up, Letgo, Facebook and other channels.

Many business failures could be easily avoided if an entrepreneur is careful, closely monitors his or her investment and willing to learn from others mistakes.

For more information, search out NANCY CHRISTOPHER on offerup.com or letgo.com . You can as well contact me on my email; nancopher@hotmail.com especially if you want to sell or buy any kind of used item including cars and trucks