Why start up businesses FAIL –how to not be a statistic

5 10 2007

There is a few very good reason why new businesses end up out of business before they know it. This is all the things that they do wrong so you don’t have follow in their footsteps. These all can be summed up by saying DO as much homework as possible before you get into business and you’ll have a lot less struggle while your in business.

  1. They don’t plan to screw up they are so busy trying convince everybody else that it will succeed they don’t play devils advocate for the challenges they will face. If you don’t mess up your business will have no foundation. Great businesses are built on massive I mean HUGE Adversities. Plan for the worst case scenario then work for the best case.
  2. Have a business plan that people would feel good lending you money on even if your no looking at any. When people say it won’t work instead of defending why it will instead tell them to read your business plan (most people will shut up at the sight of even seen a business plan) . Remember the things that most people that don’t believe in your business idea are saying one of two things either they don’t believe because they couldn’t do it or that you haven’t shown them enough working on the business only getting into business.
  3. Read at least 5 business autobiographies– figuring out how others became successful will only help you to get there faster. It also makes smarter by learning the reasons why things do and don’t work. The more we can learn from those before us the more time we can take in focusing on achieving our dreams.
  4. Interview competitors in your industry and similar industries that aren’t your direct competition or in your local market. You’ll find that almost all entrepreneurs are willing to help you because they understand how hard it is. Never “think”you understand you know the reason why things happen in your industry ask others and use their experience to your advantage.
  5. Over estimate all your expenses by 25% and under estimate all your profits by 40% . In the beginning most businesses are cash strapped so if you set yourself up for things being HARDER than they will be you will surprised at how much cash flow your actually have. You need to give yourself a lot of leeway financially for all the things you never saw coming but show up when you least expect them too.
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    14 10 2007
    Business » Why start up businesses FAIL –how to not be a statistic

    […] experientia wrote an interesting post today onHere’s a quick excerptThere is a few very good reason why new businesses end up out of business before they know it. This is all the things that they do wrong so you don’t have follow in their footsteps. These all can be summed up by saying DO as much … […]

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