Everything has its start and so does business. Every business starts as a start-up and after its birth, its reared into that multimillion dollar business conglomerate that we read about. The likes of Sir Richard Branson didn’t just wake up one day to find the whole virgin empire built up and a success just like it is now.
Its quite unfortunate that many businesses do fail while at the start-up stage. Truth is, starting a business is no easy process. It’s the most stressful part of the life of an entrepreneur/ business person. The challenges are many, but can be by passed leading to the growth of a great profitable business. Here are some of the things that an entrepreneur can do to prevent his business from failing at the start-up stage.
Planning is essential to everything that anyone does. And so is business. You must have a plan on how to do your business. Actually, you should draft a plan before you even start carrying out your business.
Having a plan helps prevent wastage especially financial resources wastage and time wastage. You should create a plan keeping in mind that at start up stage, so much work is required hence planning is essential to keep you focused.
Don’t be too ambitious. Business grows slowly.
Many start-ups do fail because the entrepreneur is too ambitious. Here, one is new to the business field with all expectations of success. In the business person’s mind, there is an ideal way of doing business and he thinks that he can make more money instantly just as he gets his business running.
Business growth doesn’t just occur overnight. Growing a business needs time, hard work, patience and determination. A start-up is taken care of like a baby and one has to be patient with it, rear it properly so that it can grow fast and in good health. And so is business. It grows slowly so don’t be too ambitious or else you will be disappointed leading to your business failing.
Ensure good management
Many business start-ups fail because they have a poor management team. A feeble management team makes poor decision and no business person can risk having poor decisions. Management keeps your business running. If the management is not good at making decision, you are at the risk of failure at start-up.
Be creative. Try to give your customers something more/different
Try to be creative and offer your customers something more. Try to be a little different form other people in the industry. This helps beat competition and keeps in customer traffic rolling since they know that you can offer something that other people can’t. by this, you can be able to boost your sales, thus keeping your business growing.
Learn from other people’s mistakes and don’t be afraid of failure
Be observant and look at what makes other businesses fail while at start-up. And then try to avoid the mistakes that they committed in order to avoid falling victim of circumstances like theirs. Also, don’t be afraid of failing. In case you fail, learn from the mistakes that made you fail in the first time and try to work on them.
Business is never for losers but for people ready to fail and stand up again. For the strong-heartened who can fail severally and come right up again.
Do more marketing and specialization
Marketing is an essential part in the life of a start-up. This is because you, your product and business are new to the market. Hence what do you need? You need to make people aware of you existence. But you can’t just sit and wait for people to know you exist. You have to promote your business. You have to market your product to make people aware of it.
You can start with a little pilot test and offer some free samples, market through the web and even via word of mouth, roadshows, through television and other media that you think you can use to reach your target market.
Also, during start-up stage, its very advisable that you also specialize on one good or service and offer a variety once your business starts growing. By specialization, you can have time to build a strong customer base and a steady market for your goods or service hence lessening the chances of failure.
Talk to people who are mature in the type of industry you are investing in
You can only gain expert experience and know more about the industry that you are getting into by talking to experts. It is one of the best ways to know if you have what it takes to start and operate a business. By talking to an experienced person, you can be able to learn strategies that can help you grow and not fail. Most are always happy to help out a growing business person. And you can even use them as consultants whenever you feel like you are not on the right path.
Calculate the risk before taking it
Sometimes, it is not good to be too optimistic but good to be a pessimist once in a while since it makes you aware of the possible risks. Knowing the amount of risk before taking it is a good idea since it will guide you to minimize them and also minimize wastages.
Do intensive research and be informed
Information is an essential tool for everyone. Ignorance is too costly especially for a fellow in business. One who knows the value of information won’t take the risk of ignorance for ignorance is a bliss and a major setback for someone in business.
Always do more research to acquire more information about your industry, market, customers, product and also try to be as tech conscious as possible. Technology, just like every aspect in business dynamically changes and being up to date can enhance productivity and growth.Information can help you climb milestones once you know how to acquire it and using it.
Be flexible are responsive to change
It is never the strongest man who always survives but the one most receptive to change. Business operates in an environment that changes at a very fast rate hence an ambitious business person should not be rigid to change if he wants to keep up the pace of the market. He should keep an open mind and be ready to change just as the changes occur.
Published by Kenya Business