3 Potential Reasons Why Your New Business Could Fail
The world of
business ownership can be a world of uncertainty. There is no guarantee that today’s million
dollar idea will stick around, or if your new business venture will tank. If you’ve been thinking about starting a
business or company, the one thing holding you back is probably the uncertainty
of success. No business owner from Steve
Jobs to Alex F. Bouri knew that their business was going to be successful, but there are a
few clues we can use to tell you if your business is destined to fail.
You don’t have enough money
We know that a successful business needs money to operate; after all
there is the old saying that you need to spend money to make money. It’s very common for new business owners to completely
underestimate how much money they need to properly to operate their business.
Because of this, business owners can also grossly over estimate how much
they’ll be taking in when it comes to revenue and sales. Therefore, it’s crucial for new businesses
owners to have realistic monetary expectations for their business. Talk to a financial advisor that can help you
realistically pinpoint how much money you’ll need to launch your business.
You went into
business ownership with the wrong ideas
Did you want to start this business because you were sick of having to
take orders from your own boss? Did you
want to make a lot of money? All of
these are good reasons in theory to start a business, but if you founded your
business on these ideas alone you won’t be nearly as successful as you want to
be. In order to start a business you’re going to need some professional
knowledge of the business world, and be able to handle the physical, mental,
and emotional pressures to start a successful business. If you want to start a business so you won’t
have to deal with another boss, think if this is really right for you
professionally right now.
You plan
things poorly
A few months into your business a personal tragedy happens, and you have
to take a few weeks off f work. Who will
be running things while you’re away? What
if your first year isn’t nearly as profitable as you had hoped it would have
been? How do you account for the lack of
funds? Problems are a natural part of
life, and you’ll need to plan ahead to stay afloat. A lot of small businesses fail because owners
don’t plan ahead, or don’t plan for emergencies or in case things don’t go
exactly as planned.
Labels: Alex F Bouri