Let’s face it, business failure is not on our minds when we decide to start our business. To be fair, there are enough siren voices around telling us that the time isn’t right to go it alone. They argue that we would be safer in a large business. People advise that we should be risk averse.
But we should be prepared to put these voices behind us. Instead, we need to plan and nurture our ideas. This will help us realise our dreams.
The Official Receiver lists the main reasons of business failure for SMEs (Small and Medium sized Enterprises) as follows:
- Insufficient Turnover
- Poor management and supervision
- Lack of proper accounting
- Not enough capital
- Bad debts
- Excessive remuneration to the owners
So how do you avoid falling into these traps?
Well having good planning, market research and systems in place will help alleviate these issues. By introducing these aspects you will help be a success in business and protect against business failure.
Getting prepared for business should force you to ask the fundamental question: “Do you have the abilities for starting and running your own bushiness?”
There is a common held belief that for every ten people who want to start their own business only one finally does so. Business failure can be down to several reasons as we know, and apathy is another strong contender.
We suggest to prevent you falling into the business failure trap you look at your own abilities, satisfy yourself there is a real need, and check the viability of the market you are hoping to operate in.
Why not explore this further? Each of these areas can be tackled with guidance and the right support. Contact us to see if we can help.