WHY PEOPLE FAIL IN BUSINESS
Lack of proper Business Plan: A proper business plan is a core need for the success of any business. Unless and until you have the road map as to what are your business goals and how you are going to achieve those goals you will seldomly succeed in your business ventures. Its worthwhile to spend some time on this before you take a plunge into any business. This not only speeds up your business success, but it also helps you to get to know what your drawbacks are and gets you thinking on how to overcome those to be on track.
Cash Flow Problems: Its common for a fresh entrepreneur to think that he will start covering his costs from day 1 and that’s the first mistake done. Success in business is just like a kid learning to walk. During the initial stages he has to balance himself to stand up then take a few baby steps and learn to walk before running at high speed. So also, entrepreneurs should know that it will take time for any venture to standup and start running smoothly and so we need to have sufficient funding to cover this period. Many businesses are closed as entrepreneurs are unable to judge their cash flow, they put in their savings and operate for a couple of months lose those and close down. Proper cash flow planning is necessary for any business success.
Lack of Self Discipline : Self discipline is one core element which is needed not only to be successful in business but also, it’s the most important ingredient to success in life. Successful people have the tendency to do the things needed to do irrespective whether they like it or not. For example, all of us hate to get up early but this is one of the habits which all successful people have even though nobody likes to get off the bed in the early hours of the morning. Self-discipline needs to be developed so as to accomplish the business tasks in the stipulated amount of time.
Staff Issues: Choosing your team well ensures your business success. Many a time entrepreneurs tend to overlook this and try to do all the things alone as much as they can leaving them with little time to think and work on the business. For any successful business its necessary that the right people are taking care of the right responsibility in steering the business towards its objectives. For rapid success in business you need experienced and responsible people to support you to advance rapidly towards your business goals.
Operational Mismanagement: If I were to name one thing which has caused many businesses to collapse in spite of having a sound infrastructure, a solid sales team and enough cash to run the show then its operational mismanagement. It’s a real pity that people don’t concentrate on building systems to fulfill and complete the sales on time. Proper supply chain management and Customer service is the backbone for success in any business. Unless and until you have the systems to close your sales orders on time in terms of material or services you won’t be able to hit your revenue targets and you won’t be able to have a satisfied customers list on your profile. Just concentrating on this department, itself can bring in more than 20% increase in the company’s annual turnover. For real business success entrepreneurs really need to concentrate on the operations of the company which are equally important to the sales.
Lack of Persistence: if one has to succeed in business then along with self-discipline, persistence is of the other equally important quality which is required. Those who persist in spite of failures are bound to succeed. Many people quit when they are very near to the success. One needs to develop the mindset for self-discipline and persistence if one is to succeed. Lack of persistence has led many businesses to collapse. With every failure one needs to get up review what went wrong make new plans to avoid that failure and advance towards their business goals.
They don’t know what they don’t know: Along with the above causes for failures in business, sometimes entrepreneurs don’t know what they don’t know, and this ignorance leads to failures. If a person don’t know what are his setbacks but obviously he won’t work to rectify the same. That is why a business coach always helps in business as he analyses what is wrong and brings the best out of the human resources of the company.