Typically when you start a new business, you have no idea what you are getting into or the curves along the way. Being in this position today and having survived 20 years, I feel this list will help any new business start-up.
1. The manager is incompetent
Most small businesses fail because the owner does not have the knowledge to run a business properly.
Solution: Go to a business class before you open your doors.
2. Finances are not in place
Solution: Write a business plan or get an accountant to assist you. Cash is king and without proper funding even the best idea will fail.
3. The Owner gives up too quickly
Solution: Don’t give up! ?If you break even the first, second or even third year-congratulate yourself. That is not the norm. Less than 80% of new start-ups make a profit their first year.
4. Advertising? Solution: Have an advertising budget to announce yourself.
Advertising is all about repetition. Many of your potential customers will not buy your products until they have seen your marketing material at least half a dozen times.
5. Branding? Solution: Every single piece of your company has to scream out your brand including your brochures, websites, delivery vans and the uniforms that you and your staff wear.
6. Ability to close the sale
Solution: The more you practice the better you will become.?This is really an art form in itself. Some people are naturally good closers but others have to learn by reading and studying the art of closing a sell.
7. Location? Solution: Study your location for weeks/months before signing.?Location is very important to the chances of your businesses survival. Often you will have to pay more for a decent location but it can make the difference between just getting by and turning a decent profit.
8. Treat and Remember everyone that helps you now!
Solution: Respect Everyone!? We all know that we have to treat our customers with respect but what about our suppliers. If you do not pay your suppliers on time they will start quoting you higher prices. If you are rude to them they might stop doing business with you altogether.
9. Honesty ?Solution: Be honest with everyone. It may not catch up with you for years but it will catch up with you.
10. Supply and Demand? Solution: Whatever you’re selling have a lot of it at your fingertips.
Small businesses often overestimate the demand and usually have no unique selling proposition built into their products. Customers will not come back if the supply is out or the brand didn’t meet their expectations.