As a new entrepreneur, starting a business can be overwhelming. There are things you can’t control. There are what ifs. What if you fail? What if it’s too hard?
Failure is not something you want to think about your business. Although it’s hard to predict the circumstances your business might face in the future, it is important to determine the common factors that cause failure in business.
1. Poor Planning
As what Benjamin Franklin said, “failing to plan is planning to fail”. Indeed, poor planning leads to poor execution and unexpected problems. Without a solid business plan, it is difficult to see a clear picture of what you are working on, and what still needs to be done in order for your business to succeed. You are only wasting time, energy, and money.
2. Following the trend
There is nothing wrong with seeking inspirations from existing businesses. But by following a certain business trend, you might find yourself competing against an already-packed crowd, making it difficult to keep up. Why not find an unmet need within a market and then fill it? This way you can make a name for yourself and create new demand.
3. Poor Marketing Strategy
Your job does not stop when you have completed the planning stage. The next step is to come up with a well-thought marketing strategy to build a customer base and to drive sales. Some businesses fail in this area. The common mistakes business owners commit include not knowing who their target audience really is, thus, they send the wrong message. To reach the right people, analyze your product/service and determine the benefits it provides. The next step is to list the potential audience who have a need those benefits fulfill. Therefore, you will be able to craft the right message.
Also read: Ideas to Develop Your Business
