Why Businesses Fail Part 3
Just as stated in the first two previous posts that touched on some of the variables
that lead to a start-up enterprise failing, below you will find a list of some additional reasons stating as to why most start-up businesses end up going bust, thus never truly reaching their full potential. While going through the reasons for small business failure, sited, there some additional ways that you can prevent business failure or business growth stagnation from occurring.Paying People When You Can Do the Work Yourself
When you first open a business, delegating work that you don't want to do is enthralling to an extent. I remember, upon starting my business, having a warm feeling about having authority over others. This was regardless of the cost. It felt invigorating. Upon outsourcing a project, even though you don't have employees, technically you now have people working for you. You know have people on the payroll. Quickly, this concept gets old. Even more quickly, you will see the devastating effects as this concept swiftly hits your bottom line and squeezes your profit margins.
With the invention of the internet, came the invention of the accountant's worst nightmare, different software such as Quicken and other related "accountant killers." Instead of leaving the office at 5:00, these are the things that a first time entrepreneur should be learning. Accountants are expensive and are easily expendable. I do recommend using one upon registering your business, but after that, let the big guys use them. Someday, you will need an accountant, but today is not that day. Therefore, take the time to learn this software and spend the money on something else.
No Competitive Instinct
Business is a game of competition. The smartest, the hardest working and most tenacious win at this game. Competitive intelligence should be done on a regular basis to ensure that nobody is getting a jump on you. What is competitive analysis? How can one implement a strategy to keep on top of their competition?
Competitive analysis is going through your competition's websites, the employee bios of the people, closely examining their marketing structure, their position in the market (competing on price, value, etc.), the company's advantages, your advantages, social media presence, Google presence (what keywords do they rank for) and just about any other information you can get your hands on. Do this often and consider every move your competition makes to be a move you have to make, only this time smarter and more effective.
"If any of my competitors were drowning, I'd stick a hose in their mouth"
Roy Kroc, Founder of McDonalds
Why Businesses Fail Part 3
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