When the New Year beckons, people take the time to write down their resolutions. In the last weeks to 2019, a ton of people made resolutions for 2019. For many would-be entrepreneurs, it’s highly likely that their main resolution is to start a business. But starting a business is not easy with the level of competition these days. It requires investing almost all your time, money and effort to ensuring the venture takes off quickly and be a success. There is a lot of hard work and sacrifice required in the initial stages, but if you get through it successfully, you might enjoy the fruits for a long time. If you resolved to start a business in 2019 and you haven’t made the leap yet, here are reasons why you need to take the plunge now:
a) There is a ton of resources out there to help you start a business
Over the years, one of the main things that have prevented many want-to-be entrepreneurs from taking the plunge was lack of knowledge and support. With the expansion of the internet, support systems for entrepreneurs are unlimited. The internet is littered with websites that are dedicated to helping would-be-entrepreneurs to actualize their dreams of starting small businesses. Examples of websites that are dedicated to helping would-be-entrepreneurs to actualize their dreams include Entrepreneur, AllBusiness, and TaskRabbit. Also, cities these days have set up incubator and accelerator communities that offer mentorship and funding to promising entrepreneurs with big business ides. On top of all that, there are lots of apps that make running a business on a fly easy, such as Evernote, Dropbox, Salesforce, and Square.
b) You can start a small business without having to quit your 9-5 job
Quitting a 9-5 job to start a business is a risky proposition. If the venture backfires, you lose everything. However, the growth of the internet has enabled people to start small businesses online while maintaining their 9-5 jobs. This is good because you keep the safety of a salary, as you build cashflow and confidence in the business. As long as you are not launching a business that directly competes with your employer, your boss will not have any issues when you run a side hustle. Your employer will even be happy because you’re developing a new skill without them having to pay you.
c) It’s a good time to start a business due to the huge gaps in the market
Most would-be-entrepreneurs get discouraged from starting their own businesses because they think that the best business ideas have already been harnessed. This is a completely wrong perception. With the deep internet penetration, new business ideas are plenty online. For example, the third-party money transfer systems available have not spread their tentacles enough to satisfy the entire population. There is also a gap in the security of these third-party payment systems. The opportunities are simply endless.
d) It’s the perfect time to start a business because you can sell anywhere in the world
The internet technology has enabled many local businesses to go global and increase their customer base. This means more sales and higher profit margins. Today, you can set up an online business and sell products or services beyond borders without paying any tariffs. Examples of businesses that have taken advantage of the global market include Amazon, eBay, and Alibaba. These e-commerce websites rake in billions of dollars annually by facilitating the sale of products and services across the world.
But first we recommend you to keep on reading, since there some common reasons why small businesses fail to take off, so make sure to read on.
Reasons Why Small Businesses Fail To Take Off
Starting a business is an exhilarating feeling. But it’s shrouded in risks. And the main risk many prospective business owners have to contend with is business failure. Statistically, 60% of startups fail within the first month. It’s so painful to watch what you’ve dedicated a ton of time, money and effort over time go down the drain. That’s why prospective business owners must do a thorough research beforehand to know why businesses fail to take off. This knowledge helps them to discover weaknesses and enable them to build inherent strengths before committing resources. This knowledge will also help them get acquainted with the market they are going to compete in. So if you intend to start a small business, here are the main reasons why businesses fail to take off:
v Most people start a small business and treat it as a hobby
Many would-be entrepreneurs think that just because they love to do something, they can simply convert it into a business. Most of those who start businesses that way fail terribly. It always a good idea to meticulously research your business idea to ascertain that it’s viable before implementing it.
v Failing to plan is a bad way to start a business
Many would-be business owners overlook the crucial step of writing a business plan. It’s one of the gravest mistakes you can do as an entrepreneur. Without a plan, you cannot know where you’re heading to. An online business plan helps you focus on your business goals. A business plan is an effective resource to help you realize those goals. If you’re starting a small business, a 3-page business plan will suffice. If your business is a complex one, you may need a 40+ page business plan. With a business plan, you can figure out the challenges the business might face, and this will help you formulate policies that will address them when they manifest. A business plan is also crucial when you need financing to scale your business, as lenders look at it before extending such loans.
v Excitement is another reason many start a business unsuccessfully
First-time business owners tend to get excited about their initial business ideas, and that makes them overlook the crucial step of ascertaining if the ideas are actually viable. You should not get excited when you find successful business ideas. Instead, that is the time to conduct extensive research to determine if a particular market is right for you or not and the kind of product and services you’ll be able to offer and those that you won’t. Ideally, you should figure out if you have the time and knowledge to implement the idea.
v Many small business ideas fail to take off because of poor financial management
This is one of the main reasons most small businesses fail to take off. It’s prudent to keep in mind that a new business might start to generate impressive profits after one or two years of its inauguration. If you have a sound business plan, this will be easy. But if you don’t, you’ll find yourself burning money, and this could lead your startup into a financial abyss. A business plan will help you plan your finances well. And if the business starts bringing in a lot of profits in the first six months, you may need to review your budget.
v Entrepreneurial burnout is another reason many start a business and fail
Starting your own business will require you to dedicate a lot of time and effort than you would in a 9-5 job. There are highs and lows when starting a new venture. So if you are not conditioned to deal with them, you might not make it as a business owner.
There is one thing that supersedes the reasons discussed above: Passion. Passion is essential when looking to start and run any business. It will get you going despite the hurdles you stumble across along the way, more in an industry like the one of handmade wood products. Passion will make you wake up early to run your business and actualize your goals. So, if you don’t have passion, try to manufacture it. Also, there are many other reasons why small businesses fail to take off, such as poor time management, inefficient marketing, poor record keeping and inefficient sales techniques. As a prospective business owner, you must know all these reasons upfront to reduce the possibilities of business failure.
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