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It’s been a while since I looked at what makes a business fail but today I felt really inspired to explore the issue, some research gave me a few clues as to what I should focus on.

I hate seeing things fail, especially businesses, it’s a waste of time and money (except for the learning for the business person to be…)

Here are some key points to explore, especially if you have an idea and are looking at starting up, here are some fail points.

  • Business idea and research – You had an idea, but how much research did or didn’t you do before making a start? FAIL, not enough research into, who wants what you have to offer, what are their buying habits, demographics etc and can I supply to them in a way that suits them? Did you factor in a decent profit margin? Is the idea sustainable? Have other business of this type tried and failed before? You get the idea…
  • Marketing, yes you need it! – Do you have the time and expertise to do it? Do you have the cash to be able to pay someone to do it if you don’t have the time etc? Marketing can cover everything from signs to promotions to sales and LOTS of things in between. It needs to be looked into early and carefully to make sure you do enough of the right things to make your business idea a raging success.
  • What are you worth? – Strange question, especially in the start up phase… But what you pay  you to do what you do is vital to you being able to carry on with confidence in the business, knowing you are being paid what you are worth.
  • Start up $$ – Do you have enough? Do you have investors? Do you have support from others willing to put in to your idea if things need propping up in the short term? Many start ups fail dismally because of a lack of capital to get the ball rolling. How will you pitch your idea to a prospective investor, what’s in it for them?
  • How long? – How long before you succeed or fail? Many businesses fail by not sticking with a great business idea long enough, giving up JUST before seeing success. Some just keep on going by the ‘skin of their teeth’ hoping things will improve. Set yourself some goals, perhaps starting with a time frame to meet your various other goals.
  • Who can help you? – Marketing advice and ideas, management ideas and advice, operational procedures, advice and ideas… the list goes on. Surround yourself with people you can trust to assist you with all this and more.
  • Look at the gap/s – What you know and what you want to do is different. Will you be able to minimise this or not? E.g. marketing, you might be great at technician in the business and be able to ‘fix things’ for example, but if people don’t know you exist then you have a gap that needs to be filled. Look solidly at all these things and make sure you are really confident you can fill these gaps.

Starting to wonder about the whole business start up phase? Thinking that business should not be this hard? Well at least you are thinking. Now get to work and make these thing happen so you can minimse the chances of failure. Otherwise you could just stand on a street corner and throw a few thousand $$ away, because that’s how it might feel if you fail with your business idea in a few months or so.

Steve Gray -

Steve is a business educator – Trainer – Speaker (Steve Gray.biz). You can get his Leadership E Book from http://theleadershipguy.com.au
The info provided in these articles is for educational purposes only and is intended as a starting point for you to build your business from, not as specific advice.


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