When a person decides to start his own business, he does it with only one intention in mind. That is to become successful by earning the most profits. Many succeed in fulfilling this goal; at the same time, many fail as well.
Being a businessman is the most liberating career choice a person can make. There are a lot of reasons as to why business is considered so;
You are your own boss,
you can come and go as you please,
there will not be any harsh comments against you at your workplace,
and the most gratifying; everyone will look up to you.
Even if a business boasts all of these perks, it also comes with a bucket load of responsibilities. If you fail to deliver on any one of these, the downward cycle of your company will begin.
From the moment the businessman decides that he is going to build his organisation, his responsibilities start on piling up. The work will not begin when the company will become operational, but well before that. It starts with deciding the kind of business you will establish to where it would to located along with how much investment would be required.
The backdrop of the business and the intelligent business plan will forever be the aspects that will keep the business standing. They act as its spine. If the needle is flawed, the business will not be able to keep running.
This blog will highlight the typical errors made by the budding entrepreneur those often lead to unfavourable results.
- BEING SANGUINE, AND NOT REALISTIC
Always looking at the glass as if it was half full may serve you well in life; but on the business front, it can be your doom. The owner always needs to consider and evaluate his situation as it is by being realistic.
Most of you must be aware of the fact that for the first year or two, from the time the company is established, it is not going to earn much in the sense of profits. So, the owner has to be prepared for it. He needs to have enough funds with himself to keep the business operations until the benefits start coming. If he thinks that the company will become profitable within the first month, then the owner is just delusional; plain and simple.
- NEGLIGENT AND AMATEURISH RESEARCH
The kind of research work a businessman does sets the wheels of the business in motion. Think of it this way, the business is the car and research is the engine oil. It the oil is substandard, the car won’t run for a long distance.
Before starting the company, the owner has to perform thorough research. From the market trends to the consumer demands, from the availability of raw material to the best suppliers. Each aspect of the business has to be researched and evaluated following the business plan.
- OFF TARGET CLIENTELE
A business’ customer base is single-handedly responsible for its success. Since the business only earns through selling its products and services to the customers, it is understandable.
If the business owner makes the mistake of targetting the wrong kind of audience, the business will not earn much in regards to sales. For example, a storybook publisher wants to sell its books to 5-year-olds. Despite them being the target, the owner cannot make the commercial for them as they are going to buy his product themselves. So, because the parents will make the purchase decision, the product should make them the target and entice them enough to buy the books.
- IMPROPER ALLOCATION OF FINANCES
When a business becomes operational, it always has sufficient funds to keep it functional for as long as they are not growing. During this period, the owner needs to find ways to make the business flourish at a faster rate, and he cannot merely sit and wait for things to happen. He needs to use the investment that he has into different aspects, and this needs to be done wisely.
The businessman must proportionately allocate the finances to all the departments. The areas like marketing and promotions need more funding because they are going to be the attracting force for the customers. Manufacturing is another area that needs a constant flow of cash. If the businessman mismanages his funds, and there is a discrepancy between the demand and supply of funds for any of the department, then the company’s growth would stall.
- DEALING WITH THE REPERCUSSIONS
Any person who is starting a business for the first time needs to know that he is bound to make mistakes. However he should not allow the mistakes to turn him into a failure.
In the world of business, any errors can be corrected if the owner is confident, and he has the funds. There are times, when the expenses may turn out to supersede the income; in such a scenario, the owner needs to be prepared to borrow. He can opt to do so from his investors or a lender. A bank can provide a loan quite quickly, and so can the direct lenders. Loans for bad credit with no guarantor and no fees targeting the unemployed are the easiest to procure because they have negligible obligations and do not take into account your creditworthiness. So, if you have a history of default in your previous loans, need not worry.
Once you have received the necessary financial aid, then you ought to take the decisive step of changing your vision for the business or just the strategy you were implemented earlier. For this purpose, your competitors will come to your aid. It may be slightly ironical, but it is true, diligently watch your competition, what they are doing, and how they are doing it? You need not copy them because that would get you behind bars, but just take inspiration, get the idea and implement it in accordance to your vision and indeed, your road to success will be paved.
In the end, all I would like to say is that the way you conduct you may be right, but ask yourself, is it the most fruitful way? Is it the best you can do? If your answer is yes, kudos to you! If not, then a revision of strategy is of the essence.