In 10 years of my career in sales & marketing I have worked with 3 reputed companies where I got opportunities to interact with professionals and business men from various domains in India. Having visited almost half of the country I observed one thing “whether business is small or big, businessmen should keep some basics in their mind to make it successful”. In my short career I have seen some big business houses starting and shutting down their multi million business due to lack of some important points. With this blog I have tried to explain some important points as following-
Lack of Proper Planning
Failing to plan is planning to fail.
The most important factor for starting any business is proper planning which helps business owners and employees to exploit the resources to get optimum output. Most of the businesses fail because people don’t plan properly.
Lack of Market Research/ Survey
Market research helps to build confidence of business owners in starting their new venture. Market research lets the business men understand the actual demand and supply proportion in the market. It helps to get idea about competition, pricing and ongoing trends.
Lack of Leadership
As a management professional I believe that any business is run by only one person who has the vision to make differences with his leadership quality. Without leadership you can’t expect your business to grow beyond a certain limit. Lack of leadership and poor people management skills also lead a business to fail.
Vague Business Plan
When I talk about vague business plan I mean to say unclear business objectives and milestones. Many businesses are started just because someone else is making money by doing the same business and people start copying the plan which leads businesses to fail. The business plan should be crystal clear with measurable milestones and goals.
Lack of Industry Experience
Industry experience is also a factor which determines success of your business because same experience and strategy can’t be applied to all businesses and if we try to implement same strategy in all industries, there are chances of failure.
Lack of Long term vision
Long term vision is also an important factor which determines the success of any business. Businesses with long term vision provide friendly environment to employees who dedicate their 100 % towards success of the business.
Inadequate Staff Training
Yesterday I was watching a YouTube video by Shiv Khera, a well-known name for motivation and management training. In that video Shiv cited an example of monkey with gun. He says “Untrained employees empowered with authorities without proper training are like untrained monkey with loaded gun.” So inadequate staff training also leads to failure of the business.
Lack of Execution
Some business men are perfect in planning and strategy formulation but when it comes to execution of plans they fail. We know that no business can survive for long term without proper execution of the planned strategy.
Poor Marketing Strategy
Marketing strategy includes activities we do from inception to after sales of the products or services. Marketing is generally understood as promotional part of business but marketing establishes brand position in the market. Poor marketing strategy can’t help any business to grow.
Failure to understand the industry and the target customers
Before starting any business It is important to know what to sell, where to sell, whom to sell and how to sell. Failure to understand the industry and target customers will definitely make a business fail
Sometimes business plans become bigger than the capacity to invest. With insufficient capital we can’t expect a business to grow after a certain point.
Poor Management of Cash Flow
Proper and planned cash flow is required to function any business smoothly. Poor Management of cash flow also becomes one of the points which makes business fail.
Location of the business matters, If we select the proper location to start business it can save money, time and efforts which can help us to focus on the business.
Out dated technology
Sometimes out dated technology also becomes reason behind failure of businesses so businesses should keep on upgrading technology as per market demand.
Changes in Law
Changes in law, tax structure of a state also determines success and failure of a business.