Many people have ideas and the confidence to start-up their own venture but most fail at managing one that leads to the demise of their business. Do you know that previously 65% but due to the rising competition, around 80% of the start-up businesses fail within the first 18 months of their existence?
People starting their own businesses never try to consult a business planner that can help them boost their idea and turn those into effective, long-standing ventures. Some even rely on the internet and tips and tricks to make it big in the private business industry however, it takes more than just an ordinary blog offering simplistic and unrealistic ideas to get you going. You need to consult with a firm, which provides professional business guidance and also helps you with the paperwork so that all grounds are covered before you take the leap.
Here are five reasons why start-up businesses fail to flourish in the early years of their existence:
- Selecting the Wrong Market
You need to find out, which market will best suit your business mind and skills. Most people aim for something that they have no idea about which leads to chaos at the end. Business is something that you need to plan with your mind although; the idea can be a product of your inspiration.
You need to select a widespread market that has room for many competitors and lesser room for failure. This can prove beneficial in covering up several of your operational mistakes. Selecting the wrong market can soon prove to be a pain that will take you down with it.
- Choosing the Wrong Co-founder
Never try to start a business with your friends or relatives. It will all look pretty in the beginning but where money is involved situations do not take long to turn worse, even if you regard him/her as your best friend. It is like a marriage gone bad.
- Hiring the Wrong People
When starting up a business, things happen to be done in a rush and often business owners are desperate for the vacancies to be filled. It is not something that is to be done immediately. Company hires are the life and drive of your company. You do not do it with patience; you are bound to go downhill.
- Not Firing the Wrong People
It is never easy to push a person out of the business because of their sub-optimal performance but it is the best move in the company’s interest. Company misfits will not only pull down the company vibe but also cost you a great deal of money in your coming years, making it hard to survive.
- Ignoring Your Gut Feelings
Although gut feelings are not what people call “practical” but some big names like Mark Zuckerberg have done it this way. Just remember that one thing may not work for everyone but with the right frame of mind, gut feelings can save you a lot of hassle.
SK Financial can help turn your start-ups into a long-standing success with its professional business tips and accounting and taxation services. Visit www.skfinancial.com
