Business Failure Prevention Worksheet
There are no simple magic solutions that will guarantee a business success. However, the following concepts should help with improving the chances for success and meeting your goals.
#1) The development of a business plan.
#2) A written profile of your businesses target customer.
#3) Compiling accurate financial information about the business in a timely manner.
#4) A written profile of your businesses competition.
#5) Go into business for the right reasons.
#6) Do not borrow family money to start your business.
#7) Network with other business owners that are in the same industry.
#8) Be price competitive, someone will always have a lower price.
#9) Adapt, consumers' tastes and preferences are constantly evolving.
#10) Always strive to learn about new and better resources that are available.
The majority of business failure causes can be summed up into three categories:
#1) Money- Before you launch your business, have at least three times the amount of time you believe it will take for your business to reach break-even in living expenses saved up.
#2) Management- Never hire friends to be on your management team unless they are well qualified and have management experience that is appropriate to the industry of your business and you feel comfortable openly disagreeing with them.
#3) Marketing- Focus on both the "push" and "pull" aspects to marketing. The consumer pull aspect is the most important. It is your job as a business owner to make potential customers aware of what your product will do for them. Do not rely on your distributors to do this for you.
Proper business planning is critical to your business success as a new business owner. When planning against business failure be honest and objective.