About Failing

Beware of Failure
Avoiding business failure is simply a matter of good management and good planning. The best way to avoid business failure is not to start a business at all. While this may sound a little ridiculous, it is a fact that many entrepreneurs should not start a business at all because they have no management or planning skills.

" Make sure you are able to recognise the early warnings signs leading to business failure ..."

Before you start your business, you must have sufficient business operation and finance knowledge and a sound business plan to follow. If you have a weakness in the area of management or planning it will cause a strain on your business and it will only be a matter of time before your business has to close.

Make sure you recognise the early warning signs of business failure so that you can do something about it and turn the business around if at all possible.

Good Business Knowledge is the Key
The first and most important thing you need, in order to succeed in a small business, is good business knowledge. They say that at least 90% of all small business failures can be traced to the fact that the business owners had little or no knowledge about how to run a business let alone a successful one.

Obtaining this knowledge can involve you (as the business owner) taking a small business course or reading up on all the areas involved in starting, running and growing a business. One of the most important things you have to do when you are desirous of starting a business is to calculate the feasibility of your idea. You need to do a feasibility assessment and if this shows that the business has no likelihood of making a profit, then it has to be set aside.

A small business owner can avoid many mistakes and he/she will not know about this without that knowledge. Good business knowledge plays such an important role in determining success or failure that it would be a good idea for the government to bring in a simple registration process, where no one can start a business without passing a very basic exam on how to set up and run a business.

Talent or skill is not enough to guarantee success. Have a great vision plus the resources and capital would help. In the end, however, success will be determined by the ability of the business owners or the managers to put all the areas of a business together; from production to sales, to marketing, to accounting and finally to completion of financial accounts.

If you are contemplating starting a business, it is recommended that you do not do so until you have educated yourself on the basic knowledge of business operations.

Common Blunders that Lead to Failure

  • Blunder 1: Lack of finance.
  • Blunder 2: Poor planning.
  • Blunder 3: Lack of hard work and effort.
  • Blunder 4: Unwillingness to take responsibility.
  • Blunder 5: Having unrealistic expectations.
  • Blunder 6: Knowing what is expected as a business owner and committing yourself to it.

9 Lessons to Learn for Start Up Success
The following are 9 steps to success, based on real life lessons obtained from business success and failures of others.

  1. Get smart.
  2. Get a plan.
  3. Get advice.
  4. Get yourself protection.
  5. Hire good staff.
  6. Be computer literate.
  7. Persist and focus.
  8. Visualise success and go for it.
  9. Don't just dream about it - do it.