Reasons why some businesses fail

Let’s look through some businessmen’s mistakes, who fail and suffer losses before they get started. 70% of companies are closing down during their first 2 or 3 years and a half of these businesses fail in the first year. On one hand its competition and taxes, on the other hand – wrong strategy. How, after all, can you get back on your feet, find clients (customers) and have income?

Impatient people will find the answer in this paragraph, some details are given below. In my opinion, only lazy, silly, unorganized or too honest people can’t run a business. I suppose you’ve got some positive emotions and now seriously.

  • 1. Businessman – is not a profession.
    Businessman (in other words entrepreneur) – is:

    • an enterprising man;
    • a man, who is followed by others – interesting, smart and literate person, i.e. a leader;
    • a strong person with a high productivity and great energy (a lot of work should be done);
    • an adaptive person, a man with a variable way of thinking, i.e. an adapter. There are no unsolvable tasks for such people, they see a great number of variants, how to solve a task and to reach a goal, and choose the best of these variants;

    From mentioned above should be concluded that not everyone can be a businessman, at least, not at once. You are to develop your personal qualities.

  • 2. Choose the business, which you won’t be able to stop doing, the business which you will be ready to do if it doesn’t bring you any income. You will surely face great labor costs, and the income will not come at once.

    In my opinion, having a regular work and right feedback to all the external influences, businessman (according to our definition) will definitely achieve good results.

    In addition, I want to say, that your business should go into masses, to your final consumer, everything should hang around him. No one will care about your love to writing poetry, even if you can do it well if you don’t publish your poems in newspapers if you don’t release your collections of poetry and don’t read them from the stage.

  • What business to start not to fail?

    3. How to start building up your successful business?

    Get acquainted with the conception, which is recommended for building startups. It can be applied to any business.

    I’m talking about MVP (Minimum Viable Product) conception. I understand it in the following way.
    There is your own vision of how should your business finally work and look like. But the viable of the product or service in your understanding really consists of

    • the main (real) value (a highlight, the main service or element in the product)
    • the additional value (a wrapper, a package, something that can be easily changed)
    • the imaginary value (i.e. such accessories of your business which will be unnecessary to your clients or customers).

    Initially you are not always sure, that the main value of the product will be demanded by the customers, and you don’t know for sure, which product wrapper will be treated by the customers better, which additions to the main product it will be more pleasant for the customer to get, and which of them are not necessary at all. That’s why between unnecessary, unprepared product and the final product in the way you see it, you should choose the minimally viable, comprising the main value product. Do not waste your time on things, that can be changed, improved or even removed from the product later. Keep an eye on your clients’ reaction.

How to start building up your successful business and not to fail?

Conclusion. A bit of motivation

The most complicated part is to begin. I think, that the success of a business fully depends on our attitude to it, on the way it will be initially built. That’s why I’ll try to give you a push to the actions.

Why is it better to do something and regret than not doing anything and then regret for the whole life:

  • ▪ Little victories give you force and energy to move further. Besides, you never know what awaits you around the corner, until you reach it. Gradually, step by step a new experience, stability and confidence are gained. Don’t jump over the steps and resort to some difficult methods not experimenting with the simple ones. Very often some innovations don’t happen not because the world is not ready for them, but because they are just not needed. Frequently it’s the simpler – the better. Sometimes it is much more important not to overthink.
  • ▪ Success does not come right away. Be patient, my friend! Perseverance today is considered to be the most important quality, which unites people, who reached success. And I’m not joking. Here is the video that is worth watching: Angela Lee Duckworth: Grit: The power of passion and perseverance
  • ▪ The deal is unattainable. This tells us one more time about the fact that narrow focus, the topic of the service, product, which fulfills a specific task and closes a certain necessity, is better than multifunctional, complicated service or a product with a very doubtful quality. Small companies won’t simply have the reasonable number of resourсes and enough experience to compete in many directions and indicators with monopolists, who have occupied many spheres of our life. It’s much easier to create a service (product) close to an ideal when concentrating all the efforts in a narrow direction.

Perseverance and success to you in your business! You can turn to this cheat sheet in order to understand, why doesn’t your business bring or stopped bringing you income, and always remember about your customer’s main necessity, which you want to satisfy. Be adaptive and grow up adapt businesses that can’t fail. Be adaptive and start adapt businesses that can’t fail.

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