According to the SBA, 30% of new business fail during the first two years, and 50% during the first five. For those who are considering launching a business, some of these facts may be daunting, but there are ways to be on the positive end of the spectrum.
There are businesses that do succeed. Many of these business owners have taken the time to understand what does and does not work in their industries, to adopt the entrepreneurial mindset, and to build powerful brands.
Knowing how to avoid some of the mistakes made by those who failed before you can help you to build a great foundation for your business.
Lack of Planning
Sometimes, excitement can derail you in business. Getting very excited about the idea can keep you from planning effectively for reality, and the reality is launching a new business is not easy. There will be mental and physical challenges that most cannot handle. Preparation, however, can help you to plan ahead.
The best way to plan ahead is to prepare a great business plan to organize realistic goals, how you plan to meet them, and explore as many potential outcomes as possible. This plan will also help you when or if you need to take out a loan.
Understand Financial Risks
A broke entrepreneur is a sad entrepreneur, and most of the time, a failed one! One of the top reasons most Entrepreneurs quit is due to problems staying profitable, and the inability to obtain financing.
In order to avoid these challenges and risking a much larger loss, be realistic about your costs, and prepare yourself to lose in the first year, and for some a little longer than that. It's difficult to make money early on, something that some may not be prepared for, research your industry, and understand the risks so that you can be better prepared.
Understanding the benefits of building a great brand can help you connect directly with your target audience, and to build a powerful presence on and off the web.
Understanding what does and does not work as it pertains to branding is important, especially with the shift that technology has in redefining what it means to build a personal brand. Branding is more than just creating or sharing valuable content. In putting all of our focus on "sounding good" through our social media shares, we forget the importance of actually connecting genuinely and allowing others to understand who we truly are!
Building a brand isn't easy. First you should start with customer loyalty. Once you have a loyal customer, most other things will fall into place.
A strategic leader can help transform an organization by inspiring a productive work culture, while a bad leader can create chaos and challenges that can make growth and success impossible.
Strategic leadership can allow you to:
Being stubborn in business means being incapable of listening to criticism. In business, the inability to accept constructive criticism can hinder you from building effective partnerships or learning from your mistakes. Being open-minded and open to change, can help keep you above water while others fall around you.
Building a small business may be one of the greatest challenges of your life - and one of your greatest joys. Take the time to do your research to avoid these common pitfalls.