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Other Added - Seven Common Causes of Business Failure
How important are staff to your business? That’s sort of a basic question, because everyone knows that without staff you can’t do your own job. But really, how important do we consider our staff? After all, they haven’t been to school as long as we have, they don’t know as much, they don’t make the money we do. Shouldn’t it be easy to replace them when we need to?It’s easy to fall into the trap of under-rating the importance of staff to a business; but it’s at least as bad to have the wrong staff in your organization. Who are the ‘wrong’ staff? Most of us would say those who don’t work hard, or take too many breaks, or don’t know what they’re
Tip: Avoid partnerships completely, if you possibly can. But if you must get into a business partnership, make sure th
There are many different kinds of businesses available to the consumer today. Customers can choose who they want to do business with and with more businesses opening daily, and the explosion of internet businesses, customers are looking for the best places to do business with. Never before has it been more important to try and keep the clients your business currently has.The number one reason customers will tell you that they want is good service. They want to feel as though the business cares whether or not they choose their service. In order to keep the clients you have and build new clients you need to keep the customers feeling important.
Many businesses fail because of some common causes which many entrepreneurs ignore at the onset of the business. These causes should be studied in depth because no university course gives you enough matter to study, on topics such as this. The most common causes of business failure are:
1. Laying more emphasis on product, rather than market and marketing
The requirement to identify a market for your idea or the product is more important than the product itself. You may have a great idea or a product, but if there are no buyers for the same then it cannot be a success. Smart businesses first identify the market requirement and then develop products accordingly.
Tip: For your business idea to succeed you need to first find if there is a market for your idea by conducting a market test run. Find out if people actually want your product, and how much are they ready to pay for it.
2. Laying more emphasis on company image.
To project a high profile image for the company by hiring expensive office space and a fancy logo and website will not do much to facilitate in the success of your business. In fact high overheads, because of expensive space and website maintenance costs, can drive you out of business very fast, because the golden rule for the success of any business is to keep overheads low especially at the start up time.
Tip: At the start up time, keep the overheads low by reducing expenses. Operate from modest office space. Prospects cannot see where you are operating from and they do not care, anyways. Try to invest more on your marketing activities, which are likely to increase your revenue and chances of success.
3. Getting into Undesirable or Bad Business Partnership.
You should get into business partnership only if you find that your ideas match with the probable partner, because business partnerships are even more difficult to maintain than marriages. Many partnerships fail because of lack of communication, proper documentation and deeds. A failed partnership can lead to bankruptcy and soured relations with the business partner.
Tip: Avoid partnerships completely, if you possibly can. But if you must get into a business partnership, make sure th
Fire exits should be strategically located, with an outward opening door that has a crash bar and outward leading signs on it. Knowing where to find the emergency exits in a building that you frequent can save your life. Inward opening, rotating and sliding doors are unacceptable for use as fire exits, as they might need to be fixed open using a latch or chain if the door is needed as an exit route.In the UK, one exit is satisfactory for buildings where no more than 60 people work, as long as that the building is on the ground floor level only. The outsides of fire exits need to be kept clear and marked with a suitable keep clear sign. Whenever the
The requirement to identify a market for your idea or the product is more important than the product itself. You may have a great idea or a product, but if there are no buyers for the same then it cannot be a success. Smart businesses first identify the market requirement and then develop products accordingly.
Tip: For your business idea to succeed you need to first find if there is a market for your idea by conducting a market test run. Find out if people actually want your product, and how much are they ready to pay for it.
2. Laying more emphasis on company image.
To project a high profile image for the company by hiring expensive office space and a fancy logo and website will not do much to facilitate in the success of your business. In fact high overheads, because of expensive space and website maintenance costs, can drive you out of business very fast, because the golden rule for the success of any business is to keep overheads low especially at the start up time.
Tip: At the start up time, keep the overheads low by reducing expenses. Operate from modest office space. Prospects cannot see where you are operating from and they do not care, anyways. Try to invest more on your marketing activities, which are likely to increase your revenue and chances of success.
3. Getting into Undesirable or Bad Business Partnership.
You should get into business partnership only if you find that your ideas match with the probable partner, because business partnerships are even more difficult to maintain than marriages. Many partnerships fail because of lack of communication, proper documentation and deeds. A failed partnership can lead to bankruptcy and soured relations with the business partner.
Tip: Avoid partnerships completely, if you possibly can. But if you must get into a business partnership, make sure th
IN PART 1 of this two part article, we looked at Quality of the Product and Friendliness of the Service. In Part 2 we will consider alignment to particular requirements, responsiveness to needs, ability to deliver to schedule, and cost to the purchaser. Let’s get started.ALIGNMENT TO REQUIREMENTSA big part of competitiveness is found in the alignment of the product to the customer’s requirements -- if it does what it’s supposed to do, they’re gonna consider buying it. This was discussed back in Quality of the Product, but it also means that you, as the producer, have to consider needs that the customer has in keeping his/her own costs dow
2. Laying more emphasis on company image.
To project a high profile image for the company by hiring expensive office space and a fancy logo and website will not do much to facilitate in the success of your business. In fact high overheads, because of expensive space and website maintenance costs, can drive you out of business very fast, because the golden rule for the success of any business is to keep overheads low especially at the start up time.
Tip: At the start up time, keep the overheads low by reducing expenses. Operate from modest office space. Prospects cannot see where you are operating from and they do not care, anyways. Try to invest more on your marketing activities, which are likely to increase your revenue and chances of success.
3. Getting into Undesirable or Bad Business Partnership.
You should get into business partnership only if you find that your ideas match with the probable partner, because business partnerships are even more difficult to maintain than marriages. Many partnerships fail because of lack of communication, proper documentation and deeds. A failed partnership can lead to bankruptcy and soured relations with the business partner.
Tip: Avoid partnerships completely, if you possibly can. But if you must get into a business partnership, make sure th
People often get confused when they hear someone say they are using Six Sigma. In fact, it is the methodology signified by DMAIC that they are referring to. The very reason for their choosing DMAIC is that they have some existing processes which need to be ratified because they are bleeding resources heavily. On the other hand, DFSS, the acronym for Design for Six Sigma, dwells on R & D and design of products, processes with a view to minimizing process defects and variations at the root itself. At the onset, one must accept that the credentials of DFSS are not universally acknowledged, with most of the companies deploying DFSS following their own steps a
Tip: At the start up time, keep the overheads low by reducing expenses. Operate from modest office space. Prospects cannot see where you are operating from and they do not care, anyways. Try to invest more on your marketing activities, which are likely to increase your revenue and chances of success.
3. Getting into Undesirable or Bad Business Partnership.
You should get into business partnership only if you find that your ideas match with the probable partner, because business partnerships are even more difficult to maintain than marriages. Many partnerships fail because of lack of communication, proper documentation and deeds. A failed partnership can lead to bankruptcy and soured relations with the business partner.
Tip: Avoid partnerships completely, if you possibly can. But if you must get into a business partnership, make sure th
The only thing that does not change in this world is change. The business world is no exception. At Wall Street, stocks and bonds rise and fall due to hostile takeovers. Multi-billion dollar mergers are a daily thing. Executive decisions are made with the goal of saving a corporation's bottom line, not jobs. In the blink of an eye, seemingly unlimited amounts of money can be zapped from Wall Street to Main Street. In today's every-changing business world, people and corporations trade information at lightning-fast speed. What better way to reflect such exciting, dramatic, and no-nonsense times than through the office furniture? Contemporary bar stools can
Tip: Avoid partnerships completely, if you possibly can. But if you must get into a business partnership, make sure the duties and responsibilities of the partners are detailed right from the start, and the partnership deed along with commercial terms is clearly defined
4. Attempting to have a very complex business model
Simpler the business model, better it is. In a simple and uncomplicated business model everybody, including your vendors, suppliers, employees, and customers are well aware of their responsibilities and goals. In a complex model they have to adapt themselves to new roles that they may not be comfortable with.
Tip: While devising the business model, follow the rule of "keep it simple". As the business grows and gets established, you can shift to a more radical or complicated business model, if required.
5. Attempting to pioneer a new product or industry
Many businesses get into the vicious cycle of trying to pioneer a new product or industry- many a times the whole exercise can drain you and your business completely, without much success. Very few and limited entrepreneurs succeed in radically new businesses. Even customers at times are scared off because of a totally new concept or product, hence chances of success are not assured, despite all the efforts that you may apply.
Tip: Try to achieve extraordinary business success by simply improving business practices of the existing business, rather than trying your hand at pioneering a new product. Once the business is established, you can try to get into the pioneering new product cycle.
6. Getting involved in a business lawsuit and bankruptcy
Business lawsuits that are not in your favour can take away all your assets, including your personal assets like home, property, savings etc and make you and your business bankrupt.
Tip: Always operate a business under the protection of a corporation, courtesy which you get a corporate shield. In this way personal liability to the business is limited to
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