Starting a business is a lot harder than most people think. Rarely is a business so in tune with its niche that it can float along with minimal effort. But why do so many businesses fail? For that matter, how many of them actually do fail? The reasons run deep, but here is what you should know before starting your own business.
According to OMARI KITULA (ENTREPRENEUR and CEO), reasons for failure include money running out, being in the wrong market, a lack of research whereby you just opt to start without having researched about the business you want to start , bad partnerships that is working with the wrong people , ineffective marketing, and not being an expert in the industry.
keep in mind that people are a great asset in your business so the moment you select the wrong people to work with,that’s the beginning of your failure in that business you are about to start .
Reasons for Failing
According to a poll conducted by Mr OMARI KITULA , he got a wide variety of reasons as to why most businesses fail.
Money Ran Out:
This widely given reason doesn’t really explain why a business failed. The money ran out because it stopped coming in, so why did the cash flow dry up? Was it due to poorly managed costs or because sales weren’t high enough? Money running out also relates to an inability to obtain financing or further financing needed to sustain a business, especially in the early days, until a business can start generating profits.
Too many people try to start a business targeting everyone as their demographic. This doesn’t work out well. Next, they try to target everyone in their town. Again, too broad. The more narrowly defined your niche is, the easier it will be to market to the right audience. “This is one of the mistakes that i also made when I started my first business” Omari Kitula
Lack of Research:
You have to know what your customers want. Too many would-be entrepreneurs go into the market thinking they have a great service or product to offer, but they fail to realize that nobody wants that service or product. By doing your homework and researching your market, you will know exactly how to meet your potential customers’ needs.
Often, when starting a business, a partner is needed. One of you is an expert in one area, and the other is an expert in another one. Your ideas for the company will conflict, and without a clear resolution, it starts internal strife. You work harder and your partner works less, but your partner thinks they are working harder than you. Ultimately, the business dissolves because the partnership didn’t work. By having a clear business plan that lays out the duties of each partner, you can avoid most conflicts before they even arise.
It could be said that a business boils down to two aspects: marketing and bookkeeping. If you excel at both, it doesn’t matter what you are selling or offering because someone will buy it. The sad truth is that most entrepreneurs know their craft and little else. Instead of fumbling through your marketing campaign, hire out that aspect of your business. It costs money, but if done right, it will bring in much more than what you spent.
Not an Expert:
Too many entrepreneurs start their business because they need a job. They have a vague idea of what they are doing, and they think that because they’re better than their peers, they should make a living doing it. The sad truth is that without business skills and real expertise, these entrepreneurs are destined to struggle.
How to Avoid Failing
It seems that most businesses are destined for failure. But there are key points to not becoming one of the 20% that fails right off the bat. These are some of the key points that i have noted throughout my whole research .
Know exactly where you need to be and where you want to be. Without a goal, you’re just wandering aimlessly , if you know where you need to go and the way that will lead you there then you’ll probably reach where you want to be.
Know everything about your market. Know what customers want. Know that they will pay $9 but not $10. Know their income, their desires, and what makes them tick. The more you know, the more you can pitch to them. I remember one day when i was at BUNI HUB listening to brother JUMANNE MTAMBILIKE he emphasized on knowing your customers and also knowing your competitors very well as in what they’re doing and what do you think they’re not doing that you can do to outperform him/her .This will help you understand why customers will choose to buy from you and not from your competitors.
Love Your Work:
If you don’t love what you do, it will show. You must be passionate about your business, or it will just be a job. You should also know the difference between your job and your business.
No matter how great of a business you have, you are going to have downtimes. There will be periods when things are dragging along and you question your decision to embark on this path. This is a time to put in extra hours, press harder, and make it work.
“As an entrepreneur you must be able to stand no matter how hard you get hit” Omari Kitula