You finally launched your business, congrats! But watch out, your startup business could be one of the over 90% startups who do not surpass the fifth year ceiling according to Forbes. It is true, every good idea goes through turbulent moments to turn to gold! Have you quizzed yourself on how to avoid making it into the failure statistic?
Just maybe you are lucky to be reading this article. These are eight (8) indisputable factors identified by The Spirited Hub Facebook Community to avoid joining the “popular stands” of young business collapse.
1. On what core value is your business built?
The point-of-view (POV) of @Kofi Acheampong, “Many start-ups, I believe do not define their core values as to why they exist”
A valueless commodity is not worth the attention. All business ideas need to be built on a foundation which will keep reminding owners of why they existed in the first place. Value is simply defined as the quality that renders something desirable. So, why is your business important to your customers, what do you intend achieving ultimately with your concept, what principles should guide you to success, etc. Before you proceed any further define what your central values are for success in the long term.
2. You lack basic knowledge of doing business.
The brand expert and author of Branding 360, @Scofray Nana Yaw Yeboah, points out that most young businesses start with founders not having any knowledge of how a company is run. He identifies “poor planning, management, over zealousness.” Again one sin you may be committing is lacking “thorough knowledge of what the business is about.” What will be your reaction when you have knowledge that the driver of the vehicle you currently sit in has no qualification to even hold the steer? Imagine?!?!?! That feeling is what your young company may struggle with. Simply get some business knowledge from mentors and experienced entrepreneurs to guide your steps. Your lack of basic business knowledge may lead to your inability to be innovative enough. Sheer innovative spirit will help you maneuver through inadequate funding.
3. Are you a born entrepreneur or not?
This is an argument that will surely not die anytime soon. You must do a self-examination of the amount of risks you can chest. One school of thought says you cannot succeed as an entrepreneur if you are not born as one. Do you agree? If you are not able to withstand the challenges that come along with running a business, you can as well kiss success goodbye.
“Lots of people enter into entrepreneurship because they’ve read about someone and thought it is fun to be part of the game. They do not assess themselves properly before accepting the challenge, and when it gets tough, they start thinking of the other way to go out of business, which is one of the easiest decisions to act on” – @Prince Akpah
As @Marricke Kofi Gane, a Certified Chartered Accountant, Entrepreneur and an International Development specialist sees, “The reasons may be endless and in some cases, not obvious. A few things come into mind, 5 things in fact that usually are the most practically common reasons businesses fail so early.
4. Owners are not prepared to fail.
Just like many of us, the last thing we probably think about is our companies collapsing too soon. Truth be told, anything can happen and you must have an open mind to accept few failures in your journey.
“Not everybody is cut out to be an entrepreneur. If you cannot take a few failures and bounce back and simply continue, then don’t venture. The winning strategy is to accept that there will be failures but that your number of wins are more than the failures.”
5. Lack of research.
Even God, turned on the light (let there be light) before he started working. It’s not enough to just ask a few “paddies” if they think this idea is cool. One has to find out what is already out there, is there a real need? How much need for this service or product? Who is already doing it? How different can I be from them?
6. Financial Planning
Many people don’t understand that you need money beyond just setting up. In fact you need money to run the business afloat for the first 6 months if profit doesn’t show up. If you don’t ready for this, the business may collapse before it even has the chance to take off.
7. A lot of entrepreneurs have not developed themselves.
That, is the greatest asset in the business – you.
8. Hard work is a prerequisite for success.
Most people don’t know until it’s late that the first few years of startups require the highest levels of discipline and rigour.
Are you convinced and what is your take? Leave your comment.