Studies show that one out of three new small business fail after the first two years. The same study showed that more than half fail after the first four years. Regardless of all these statistics, determined hardworking entrepreneurs have managed to run successful businesses. As I have said before nothing can stop a passionate entrepreneur.
The survival of your business is your responsibility. One Secret that you should keep in mind “never give up!” Be prepared to fail but do all within your power to avoid failure and you will never fail. It has been said that the main reasons entrepreneurs fail is because they fear failure and that fear of failure prevents them from trying new strategies on their business.
The decisions that you make contributes a lot to the failure of your business, don’t make thoughtless decisions. Always research before concluding on a decision to take about your business. Consult more experience gurus in your line of business, this could prevent your business from failing.
10 STEPS TO PREVENT YOUR BUSINESS FROM FAILURE.
Take control of your business
You have to be involved in the day to day running of your business, this will ensure that you are aware of whatever is going on in your business. You are the one with the vision, you are the one with goals to achieve. You cannot run your business by a remote control and hope things will take care of themselves. They will never! You have to play an active role and be able to identify the threats and opportunities and act accordingly.
Manage Cash flow problems
They say “cash is the lifeblood of every business” You need cash to pay suppliers, you need cash to buy stock, you need cash to pay all expenses including employees’ salaries. Business must do what it can to bring in revenues while limiting expenses
Have a business plan, stop working with assumptions
Build a road map of your business .Without a road map you will definitely get lost. There goes the saying “if you fail to plan, you plan to fail”. Every business needs a business plan. The business plan is a direction to where your business is going. How it will bring in revenue and shows forecast on expenses which can be very important to track your success. A business plan is the vision of your business.
Market your business
I Have read a post that said “don’t start a business and sit there praying that it become successful” it is good to pray for your business but you have to go out and market you business, Let people know that your business exist. Have a separate budget for marketing.
React to the market
Understanding what your customers want and reacting to their needs quicker than your competitors can give you a crucial advantage in a tough market. To be competitive, you must ensure the main focus of your business is on your customers. Your ability as an entrepreneur to rapidly align your business with the changing trend can be a competitive advantage for your business
Give the customers what they want
Do not sell what you want or what you think can be profitable. Sell what your customers want. To know what your customers want you have to identifying the fast moving items in your business. Pay more attention on the attitudes of your customers towards items in your business. Listen to your customers. You own the business and customers are your company’s greatest asset. Without them, your business will not be in existence. Believe me, it costs more effort and resources to find new customers than to retain existing ones.
Keep track of your competitors
You must also understand your competitors’ strengths and weaknesses and how they will react to customer needs and changes in the industry, so you can stay one step ahead. At the same time you must make sure your business complies with relevant competition law
Keep financial records
Keep records of your receipts, bank statements and invoices. Part of running a successful business is being able to make decisions, how do you know where you are going if you can’t track what is going on with your business. By keeping good records, you allow yourself to quickly determine how your business is doing. .Keeping the records will also help you to prepare the financial statements like Statement of Financial Position and Statement of Comprehensive Income and Expenditure. These will help you know how much money you are making or losing. It is also important to have a Statement of Financial Position (balance sheet) so you know about your company’s assets and liabilities as well as your equity in the company.
Be positive stop doubting
When the going gets tough, don’t fall on your back, rather fall on your knees and prepare to stand up. Failure is not the end, in fact it is often the beginning of something great when running a business, there will be difficult days, hard times and stressful periods. Keep calm and be positive failure should never be part of the plan. If you are experiencing difficulties take it as a learning curve learn from the experience and move on. A positive mind will works miracles for you.
Keep the right people Fire the wrong people.
Do unto other as you want them to do unto you. Treat your employees the same way you want them to treat your business, acknowledge their extra effort, and promote staff with outstanding performance. It will encourage them and also motivate them to work hard. Another strategy for preventing your business from failing is to fire non performing employees fast.
And finally, be inspired:
“Would you like me to give you a formula for success? It’s quite simple, really: Double your rate of failure. You are thinking of failure as the enemy of success. But it isn’t at all. You can be discouraged by failure or you can learn from it, so go ahead and make mistakes. Make all you can. Because remember that’s where you will find success.” Thomas J. Watson
There you go! Following this guide will ensure that you sport deficiencies early and be able to take action before it is too late, business is like a child you have to guide it if you want to reap the best result. If you put someone else in charge they will guide it to their way, which sometimes can be failure because the reason why they are working for you is because they cannot start their own. How can you trust someone who does not trust themselves?
I hope you get it I am trying to encourage you to start your own