These are some of the top reasons why entrepreneurial ventures fail on a regular basis.
1. Lack of research. To succeed you need to have an interested market of buyers. Make sure there’s a market for your business before you launch by researching both demand and supply for your product or services. Who is providing the same products or service? What problem are you solving for people? Who are your prospects?
The research phase of launching a business is one of the most critical. Without proper research you’re not going to be able to position your business successfully. Very few businesses succeed without solid initial research.
2. Lack of Market Knowledge. This is a different level of research. Before you launch your business, know exactly who you’re marketing to in order to position your product or service to meet their needs. If you don’t understand the needs of your target market, you can’t make sales.
3. Don’t Understand Cash Flow. Cash flow is essential to survival. Entrepreneurs must create a budget and be realistic about how much they expect to earn. It’s also necessary to keep a tight rein on expenses. In order to pay the bills and earn profit, cash needs to come in on a regular basis. Cash flow is essential to survival.
4. Lack of Marketing Skills. You don’t have to be a marketing genius but you need a solid marketing plan for your business to thrive. In business, the old “if you build it they will come” mentality just doesn’t work. If you don’t like to do marketing or don’t understand it, then hire someone to do this for you.
5. Lack of Planning. Many people believe that a business plan is only necessary if you want to go after funding but this is not true. In order to achieve your goals, it’s important to plan how you’re going to succeed. Your business plan is your road map to success. Don’t skip this important step.