HOW TO AVOID BECOMING JUST ANOTHER FAILURE STATISTIC.
One of the reasons the small business failure rate is so high that too many people launch their companies without being prepared to endure the fires of entrepreneurship. They simply have no thought through their ideas, their business concepts, their strategies - even their product and services. Plunging headfirst into entrepreneurship ill prepared for the long,arduous journey that lies ahead is a sure-fire formula for failure. Although no checklist can guarantee business success,considering the following questions may prevent impatient entrepreneurs from going into business before they are ready:
Will anyone be willing to pay Real Money for the product or service you are planning to offer? Can you prove it?
Do you have the management skills you'll need to run a business successfully?
Do you know your strengths?Weaknesses?
Can you handle the risk involved?
Do you understand what it takes to succeed in your chosen industry?
Do you know what factors are important to your customers and how to sell to the customer?
Do you have positive, winning attitude?
Do you have enough start-up capital to get the business going and to keep it going until it can support itself?
Do you have a plan for managing cash flow, the lifeblood of every business?
Can you manage people effectively?
Do you have a well-defined strategy?
Do you know how to compete successfully?
Experienced entrepreneurs who have learned what it takes to make a business work-some by failing, some by succeeding- offer the following advice:
Learn everything you can about your proposed business and your industry.
Realize that starting a business always takes more money and more time than you anticipate.
Choose an appropriate location for your business: don't rent the first suitable building.
Study your competitors-especially the successful ones-carefully.
Decide what image you want to create for your company and its product or service and develop a workable strategy for achieving it.
Learn to manage cash flow.
Learn to manage inventory. Too much or too little of it can drive you out of business fast.
Hire good people. They determine the quality of your product and service and hence, the quality of your business.
Don't try to be everything to everybody. Find a specific target market and focus on serving it.
Learn to read your financial statements. They can give you valuable insight into your company's strengths, weaknesses, problems and opportunity ties if you know that to look for.
Focus on your customers. Find innovative ways to serve them and stay in close contact with them.
Don't forget to advertise; otherwise people will forget about your business.
Build a business plan before you launch your company. Once you're in business, keep it updated and use it to help guide your company.
Concentrate on quality, speed and service. Your customers will love you.
Find out what factors are most important to your company's success and measure them. If you don't measure something, you can't manage it.
Treat your employees with respect. They truly are are your most important asset.
Watch out for ethical pitfalls. They lurk in even the most mundane situations.
Take pride in your business. You'll work hard to build it up!
Realize that starting a business always takes more money and more time than you anticipate.
Choose an appropriate location for your business: don't rent the first suitable building.
Study your competitors-especially the successful ones-carefully.
Decide what image you want to create for your company and its product or service and develop a workable strategy for achieving it.
Learn to manage cash flow.
Learn to manage inventory. Too much or too little of it can drive you out of business fast.
Hire good people. They determine the quality of your product and service and hence, the quality of your business.
Don't try to be everything to everybody. Find a specific target market and focus on serving it.
Learn to read your financial statements. They can give you valuable insight into your company's strengths, weaknesses, problems and opportunity ties if you know that to look for.
Focus on your customers. Find innovative ways to serve them and stay in close contact with them.
Don't forget to advertise; otherwise people will forget about your business.
Build a business plan before you launch your company. Once you're in business, keep it updated and use it to help guide your company.
Concentrate on quality, speed and service. Your customers will love you.
Find out what factors are most important to your company's success and measure them. If you don't measure something, you can't manage it.
Treat your employees with respect. They truly are are your most important asset.
Watch out for ethical pitfalls. They lurk in even the most mundane situations.
Take pride in your business. You'll work hard to build it up!
If you're interested in learning some of the details behind this advice, read on!
Taken and credit to Effective Small Business Management Fifth Edition by Norman M.Scarborough and Thomas W.Zimmerer.
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