What makes one entrepreneur succeed while the other fail in his business?

They may have the same passion for their business, would have done all possible research before choosing the line of business they did , know their limitations in terms of resources then why is it, that one entrepreneur succeeds while the other fails in his business. While most would like to blame it on sheer luck or probably lack of hardwork, I personally would like to attribute it to lack of focus and vision .

I have been interacting wth many entrepreneurs during the course of my business and have found one of the sure shot reasons for failure of some.

Most entrepreneurs, especially bootstrapped start-ups fall into the trap of focussing on keeping their expenses low and work continuously towards meeting monthly running expenses first, then taking care of fixed expenses and at the end of the month calculating if they made any money in the process or not . And in the process,before they realise, they end up doing just that, month after month !!!

But is that really the best way to run a business ?

No

In fact,that's the worst you can do to any business especially if you have some kind of a manufacturing unit attached to it. This would hold true across industries, even a restaurant with large backend kitchen .

The focus should rather be on how to optimally use the manufacturing facility, probably round the clock , so basically in 3 shifts. Then calculate what is the maximum production capacity one can attain with varied allied product combination options.

Once one is clear on that, the next natural step then is to work on the target audience/ market for its each specific product. This way, one can brainstorm on varied product and target markets which one would otherwise not have thought off. It just opens a plethora of options thus minimising risks of failure .

The reason is simple: the focal point is now maximising productivity and sales and hence profitability is bound to follow.

If the focus is on just meeting ones monthly expenses, one can never look at the larger picture. Time, effort and money is largely spent on doing only the bare minimum and each month survival slowly becomes a challenge .

So, if you are also into that stage in business where you are wondering why the business isnt shaping the way you had wished it would, then may be its time for some self introspection and a paradigm shift in your thinking, to scale your business to new heights now.

The solution is very simple- change your focus from meeting expenses to utilising your resources to the maximum, everything else will follow.