Monday, 25 July 2016

5 Common Reasons Behind The Failure Of Start-ups

Many people will have the dream to start an own business. Instead of working under someone they would like to be the boss. This is one of among the main reasons why people want to start a business. But it is not an easy task as they think. There are lot of factors that they have to consider and take care of. If something went wrong, then the business owner will have to face serious consequences. There are many individuals who have lost their business without paying proper attention to the important aspects. Moreover when a person is about to start a business, he will have to deal with many problems. The following passages will let you know the common problems and aspects which lead a start-up to failure.
1. Planning
If you are going to start a business, you should plan everything and have a clear idea about what you are going to do. This is the most important thing that everyone has to do and on which they have to be very conscious. Most of the entrepreneur makes mistake in this case. They do not plan things properly and they simply invest the money and start a business. Eventually they failed to sustain in the field and develop their business.

2. Budgeting

Some of the entrepreneurs will have proper ideas and plan but they will not have a financial support. It is being a common problem for many business owners. Though they are very confident and clear in what they are doing, they will not have sufficient money to take the business to the next level. Hence they cannot do anything further and quit the business. Meanwhile some of them will have enough financial support but they will fail in managing it properly. They will spend money for unwanted things and finally they will not have money for the essential things.

3. Marketing
Every business needs utmost marketing in order to reach their products or services among the people. Since people are the main target for the business, the owners should concentrate on the marketing aspects and make them more effective. Then only they can get the people’s attention and bring more customers to their business. Most of the entrepreneur will fail in this case.

4. Competition     
Whenever you are starting a business, you should analyse the present market situation and the competition in the same field. You should plan things accordingly. You have to define effective strategies to get customers for your business even if there are many competitors in the market. Most of the business owners in the initial stage will not have any idea to overcome the competition and sustain in the field.
5. Building a team
Most of the new companies will not have a proper team to take the business to the next level. The entrepreneurs who start the business will hire the people who are close to them. The owners will not consider whether they have the internet and ability to work in this business. They simply choose their friends or family members and eventually they will get into trouble. 

CA Hemant Gupta
Download More

1 comment: