Last Updated On March 2021
When it comes to failed businesses, what are the ingredients of the recipe for disaster?
The fact is; small businesses always go down for the same set of reasons. While they may be hard to avoid, they are definitely not hard to identify. But with a little awareness, business owners can avoid the pitfalls that have become the graves of many entities.
So here are 5 of the most common mistakes that business owners make that eventually sink their company.
Running a business without setting aside enough time to do your homework is like a lumberjack refusing to sharpen his ax. In the long run, he is making his job much harder than it needs to be.
Aim to work smarter and not harder. Do not let a week go by without researching ways to optimize your product, knowing your market, and keeping your marketing strategy fresh. The moment you view it as a waste of time is the day you sentence your business to death.
Our world is constantly shifting and research is the key to adapting.
You don't need to be a seasoned business entity owner to get complacent. Our first point on research is a form of complacency that can sneak up on business owners from the very beginning.
Another type that can get you in the early stages is a lack of communication. Ensure that lines are always open with personnel and clients. This will guarantee that you have your finger on the pulse at all times.
It's easy to feel inspired when the company is getting off its feet. The truth is, though, that inspiration doesn't sustain the company's longevity, its values do!
The application of your company's values is what drives the growth and adaptation of your company. Inspiration comes and goes.
Make a clear and realistic declaration of your companies values. These are more than one-word cliches like "Integrity" and "Innovation". Create clear-cut principles that every member of your team can use practically when the going gets tough.
Our society gives us a bad education in failure. We are taught from a young age that it's not okay to fail. This is the worst frame of mind for an entrepreneur! Most small businesses fail in the mind of the owner before they have failed in reality.
Failure doesn't always mean defeat. Granted, there are times when an exit plan might be the best option, but don't make it a knee-jerk reaction.
Learn from others who learned from failure. A healthy view of failure is a vital foundation for success!
Many Entrepreneurs gain success because they were simply in the right place at the right time. The reality is that this is not going to happen to everybody.
Most businesses emerge as small fish in a vast and crowded ocean. So, one of the biggest mistakes you can do is trying not to set yourself apart.
The easy option is to copy and paste business strategies and products that already exist. But that will get you nowhere. The reason that Google rose above all the search engines was that it aimed to make all other search engines feel out-dated.
Know your competition. And instead of copying and pasting, use that knowledge to innovate!
This is probably the biggest pitfall of all! You can have all of the above, but if you are lacking, even slightly, in this aspect, your business is doomed! As our relationship with failure, we are often poorly educated about finances, or way too late in our lives.
Understanding how to budget and track your finances is the lifeblood of your business.
Learning how to prioritize what you do with your money makes all the difference! For example, knowing when to take out a loan and why, can be the difference in your business soaring or crashing.
Learn the difference between good debt and bad debt. This is essential to a business owner, especially in challenging times.
In this information age, you are never short of tools to help your business thrive. Never take that for granted. Make the most of the material on our blog and website. We show special concern for business owners in the Philippines. Whatever challenges you face, we have everything you need to keep your business afloat!
At Esquire Financing Inc., applying for a business loan is fast and hassle-free. Start your application today by visiting esquirefin.co/loans and wait for our Telemarketing team to assist you all throughout the process.
