Everybody one to start one business or the other but nobody pray for it to crash or fail. Most small businesses do fail because of some certain reasons the business owners neglected. Before starting a business that are various things you need to take note of. According to research made by Small Business Administration which was done in 2019, it was made known that at least 20% do fail during their first year of starting the business and within the period of 10 years only 33% will survive. The are things you need to note before starting the business you have in mind
Never Start A Business With The Wrong Intention
Before you start a business, you need to ask yourself, why am I starting this business. You will ask some business owners the reason why they start their business, some wont have a good reason and some will be like to keep themselves busy, to make more money, to stay away from families and so on which aren't genuine reason to hold onto. Having a good reason to start that business will serve as a foundation because even if it fails you will surely have a good reason not to quit. Some reason should be, you have passion for that business, if It fails it wont defeat you because you will surely learn from the mistakes that occurs and use it to succeed in the next business.
No Market Or Market Is Too Small
Before you start a business, you need to check out the market first, very important. You must know If market is available for what you are planning to bring in because no matter how good your market is or how good you try, the market will surely fail. You must also be able to know if the market is big enough for you to profit from, if any disasters or economic changes occur, it wont affect your market.
Is Your Capital Sufficient
Lack of capital to sustain a business is one mistake most business owner make, they fail to estimate the amount of capital they will for the business and most don’t even have knowledge about cash flow. This always lead them to shutdown even before the business start succeeding. Before you start that business you have in mind, you need to estimate two things, the money you will need to start a business and also the money you will need to stay in the business, you have to think beyond what you are planning, what if this or that happens, what if the business take time to grow, will I have enough capital to sustain it till then. This are things you will need to consider before starting that business.
Using The Wrong Location
This aspect, people always underestimate it or just decide to neglect it, before starting a business always check out the location, A business in the right location will surely yield good result, Goods you suppose to sell in the urban area, you are now selling it in the rural area, how will it grow. Things you need to note when it come to locations are the availability of customers, is there enough traffic to generate, light, competitors, environment conditions and so on.
Planning is really important, you can also make your research or make enquiry from people who have engage in one business or the other, they will always let you know that if strategic planning and hard work is not present, succeeding in it will be very hard. You need to plan it well.
Location is the main thing without crowd place you will be unable to cater attention of other people. Moreover before starting any business whether its big or small we should plan for about 1 year also by gaining experience from others while having long conversations with them. :)
In a nutshell, follow the carpenter's "measure twice to cut only once" method - investigate planning to avoid failure.