By Telford Aduda
When beginning a new venture, the last thing you want to focus on is failure. Whether you focus on it or not, remember that when you fail to address some of the reasons for failure, you are actually preparing to fail. There are some key factors that if not well looked into, will certainly weigh down a business venture, and these factors include:
Why are you starting this venture? Remember entrepreneurship is driven by a passion for creating solutions to problems and hence a focus on delivering a quality product will lead to your financial success. Everyone wants to make money, why and how are you being different?
Most new business ventures lack relevant business and management expertise in areas such as finance, purchasing, selling, production and hiring and managing other employees. This in the long term could lead to disaster. To succeed, get the right people with the right skill set. Or alternatively, consult with the right people.
It’s always very important to note that business ventures take a while (a year or two…or three) to get going. This implies that you will need enough funds to cover all costs until sales can eventually pay for these costs.
A good business location may enable a struggling business to ultimately thrive, but a bad location automatically spells disaster to even the best managed enterprise. While choosing the location of your business, you must determine the following; customers, traffic, accessibility, parking, lighting, location of your competitors, condition and safety of the building, the history of the area, community flavor and receptiveness to a new venture.
Lack of planning
A business must have a business plan. Many new ventures fail because of the fundamental shortcomings in their planning. The plan must be realistic and founded on accurate and current information and educated projections for failure and recovery. Also, the entrepreneur/manger must know when to stick to the plan, when the plan must be adjusted and when a new plan is necessary.
The products produced, sales or the services you provide must add value to people’s lives.
“Do research. Feed your talent. Research not only wins the war on cliché, it’s the key to victory over fear and its cousin, depression.” These are the wise words of Robert McKee. Every entrepreneur wants to prosper in their business and as the saying goes that failing to plan is planning to fail. Planning in business needs research because research is the only remedy to failure.