After years of working with thousands of entrepreneurs and entrepreneurs wannabe I noticed that there are some similarities that they have leading them to failure within a couple of months of operations.
Here are the top 5 :
1. No Plans Whatsoever
Business Plan is a must. Does not have to be professionally done but, at least an overall view or just the overall framework of how the business will look like, its clear direction, people that they are going to serve etc.
Getting into a business without proper planning or without a clear vision of where you want to go say 3 to five years down the road is suicidal because you wouldn’t exactly know where to start, how to start or even you will not know whether you have achieved your goal or not. Just like the saying goes… If you do not know where you are going, any road will take you there.
2. Changing Your Plans Too Soon
Once you have your plans ready, make sure you execute it properly i.e as planned and never, I repeat never change your plans too soon by listening to the advice from your friend and family or even your customers because everybody has their own ideas on how things should be done.
If you ask 10 people, then you will have 10 different ways to accomplish the same thing. Therefore, once you have come up with your well researched viable business plan, just stick with the action plans. Give it some time and see whether it’s working or not. If it’s working then you are on the right track and if after some time it still does not producing the results that you wanted, then you can take all the suggestions that you get along the way for your friends, family and customers and coming up with a better action plan. Bottom line, don’t change your plans too soon.
3. Sufficient Amount Of Cashflow
I know that we heard of success stories where people started their businesses with only a couple of thousand dollars and grow it to millions, even multi-billion dollar company. Yes it is possible for you to do that. But that’s not the whole story. What they did not tell you it the number of times they get funding for their businesses. If they just depend on the amount of money that they started with, they will definitely close their business operations within the first couple of months operations.
Therefore, if you want to make sure that you can execute your business plans properly without any major hiccups along the way, make sure you have sufficient amount of cash flow, at least for the first 12 moths of operations.
4. Lack Of Resourcefulness
Those who fail in their businesses do not so much lack of resources, rather they lack resourcefulness. They will always say that because they do not have A that’s why they cannot do B. They do not have C that’s why they cannot do D and on and on and on…you get what I mean. There is a problem with how they think and behave when it comes to achieving their goals. If they just change the way they think about resources they will definitely can become resourcefulness which brings me to fifth mistake…
5. Stop Growing, Personally
Just like any other successful people in any fields, they continuously grow by growing their knowledge, information and skills. They grow their knowledge and skills through reading, attending seminars, workshops, watching relevant videos on youtube etc.
In a nutshell, if you want to grow your business, you must grow.