Diagnosis, Prevention And Cure Of Bad Business
There is no business failure you can not prevent if you are able to see it coming and put preventive measures in place for it.
The key is early DIAGNOSIS and prompt implementation of curative measures. Common things occur commonly.
Here are a few common causes of business failures.
1. Wrong Purpose For Starting Business:- It is said that, “You do what you love, and then, money will follow“.
When you have a product and service you care about, that you are passionate about, it is inevitable that you will be willing the needed price in term of resilience, learning, marketing, overcoming challenges, determination and discipline.
You will work tirelessly and surrender your all. This will not be the case if the business is started principally to become your own boss, to be on your own, to escape orders from a BULLY boss, or start a business of own just to have enough time for the family.
These reasons cannot supply sufficient drive and determination, an ailing business will demand along the way.
Here are a few corrective measures
i. You have a duty to develop passion and enthusiasm for what you do. You can develop this by learning more about it, reading everything you can find about it, and doing so everyday. The more love, admiration and passion you generate.
ii. Look at the possibilities of creating a product or service you are convinced would make a positive difference or a product you consider to be the very best.
iii. You’ll adopt a lifestyle that makes you mentally and physically fit to meet the inevitable business turbulence and challenges.
iv. You’ll sustain strong determination, a positive mental attitude, optimism and patience. These are needed mindset for success in business.
v. You must see every setbacks, as they come, as a priceless opportunity to learn some needed lessons in order to grow and develop business experience.
This also means that you become solutions oriented and not dip into depression. Find new ways to solve every problems on a daily basis. Live one day at a time.
iv. You must take charge of your mood and ensure it is good at times. Good mood is contagious. It gravitate to all departments and affects the staff and the customers. Customers only pay when they feel good.
2. Poor Business Management Skills:– This is the number one reason for business failure. It is poor skills in the vital component of management that inevitably leads to business collapse.
Every business man or woman should be thoroughly educated about business finance, hiring, de-hiring, marketing, selling, production, people or staff management, and must keep learning day by day.
The corrective measure for this is to discover what you’re not doing well and to become educated in it
3. Neglect Of A Business:- Inattention to regular supervision of daily activities is a great KILLER of growth and development of a business.
There should be regular delegation and supervision. Focus and concentration is the key corrective measure against this.
4. Insufficient Capital:- The business starters has a duty to consider and make adequate provisions for the cost of starting, and the cost of staying in business before the profits begin to come.
In many instances, it may take about 3 years to establish a good turnover before the emergence of profits. If adequate running capital is not put in place, the business may fail before the profits arrive.
A number of business starters develop unrealistic expectations of revenue from sales or lose sight of the magnitude of cost of doing business.
The combination of these may lead to inadequate funding, and then, business failure. The natural way to raise start-up capital is saving. It is the neglect of long term regular savings that makes borrowing necessary.
The corrective measures for insufficient funds in business is to ensure that every business gradually saves a portion of its profits.
5. Wrong Business Location:- Location is pivotal to Business success. The meaning of location is accessibility, the ease of reaching the place of business.
The corrective measure for this, where the business in question is a shop, is heavy human traffic around the store.