IMPORTANT FACTS TO CONSIDER STARTING UP A BUSINESS

IMPORTANT FACTS TO CONSIDER STARTING UP A BUSINESS

Today many new businesses are folding up due to an unseen cause, this causes depends on some factors which were not properly looked into or considered before startup.

In the business industry, any business that is 5 years and above is considered stable, though most businesses never got to this stage, some folds up within 6 months, a year, 2 years, 3 years 4 years, etc.

Sometimes when a business folds up, you get a negative response from friends, peers, family and all that, like in my region you will get a response of some words like this… “Na Village people the follow am”, “His/Her money no clean”, “Na God Punish am so”.

And due to this some percentage of these individuals are sent to their early grave while others gave up on their dream of becoming a boss, only a few keeps on thriving to establish again.

POSSIBLE CAUSE OF BUSINESS FAILURE

Lack of Sustainable funds: most persons turn to start big when they have limited capital with the hope of making a high earn in the sale of their products or services, hiring lots of staff, working without securing funds to pay them, and also running of the business. In a long run, the business gradually goes down and this may lead the company to go bankrupt, though there are other factors that might also affect the business, like emergency or its related.

Combining business and social life: this is very common in this part of the region where I come from, some persons turn to use the money which is meant to promote the business and aim higher for clubbing and engage themselves in all sort of social activities and some goes as far as inviting their friends to their place of business, discussing and care less about the business activities, though this also occurs in other parts of the world according to my recent research.

SEE ALSO: How to Start a Super Successful Restaurant Business in Nigeria

Lack of Quality customer service: in business, the manner of approach matters a lot and it helps to sustain the business and its customers, in a case that the customer service or whoever is attending to its client can’t communicate in a respectful manner, and easily gets angry at mere talks, then I would say it’s a problem because no one will go to a business or service Centre and be embarrassed. If this is not taken care of the business gradually goes down till it goes bankrupt and it may lead to the closure of the said business.

IMPORTANT FACTS TO CONSIDER STARTING UP A BUSINESS

Excessive Regulation: this could be described as exceeding the normal extend or limit, ie. Too much of something, let me use a scenario of a business which adds about $200 more to the normal $100 of the cost price of an item, selling for instance bread for $300 instead of the normal $100. Once customers understand that the price is too high, there will stop coming and also discourage individuals who might in one way or the other crossed their part whose intention is to buy that specific item, the customer base gradually goes down to 0. So, therefore, excess of rules, discipline and its related will lead to the failure of a business

Recession: This is sometimes rare when a country or state is in recession, the risk of business failure is high, less it a well-known business that has a rigid customer base. A newly established business is likely to be liquidated if proper care is not taken.

Poor Management decision: the sustainability of a business is determined by the decisions of the management/board, if the decisions made by the management are poor the inflow will also be poor and can lead the business to bankruptcy.

Insufficient Marketing: every business survives based on their marketing strategies, once a business has a limited marketing strategy the tendency of its prospective client getting to know them is very limited, the business will only be known by its neighboring residents, as you may know, the more customers you get daily the more the inflow and trust.

Lack of interest for offers from businesses: there is a popular saying “No man is an island”, every business need another to succeed, there is no way that a business will be capable of doing everything its customer wants. This is where outsourcing comes in, outsourcing simply means partnering with other businesses for the purpose of executing or processing other products/services. Turning down offers from businesses or not creating offers for other businesses will limit the business bandwidth/growth in the long run this is might lead to business failure.

Inability to compete with competitors in business: some business startup makes a wrong decision by opening its business of the same niche with an already known/popular existing business, in this case, the competitive power is very limited also it will be a somehow complicated getting prospective client in that same region/location.

Lack of sales: It’s self-explanatory, once there is no sale in a business the business will likely fail.

SEE ALSO: 5 Un-noticeable Signs That Your Business Is About To Die

Wrong choice of business: some persons had this belief that business is not meant for everyone, to me I disagree because everyone has a different sense of reasoning and also carrying out activities, some might choose to work and get paid while others will want to be their boss and others will think of a means of getting income from others without working for it through means. In the process of becoming the boss of oneself, some persons turn to make the wrong choice of business. Please do not misquote me, in this context I tag it as the wrong choice because the decision is made due to influence or advice from friends, family, or peers and not from the host itself. Such a business is likely to fail.

IMPORTANT FACTS TO CONSIDER STARTING UP A BUSINESS

Note: they are other factors that may cause/lead to the failure of a business it’s important to do proper research/analysis before going into a business or startup a business.

FACTS TO CONSIDER BEFORE STARTING UP A BUSINESS

Business Location: to me, this should be the first thing to consider before starting up a business since you already got a business idea, if not already, you have to look for a business you want to venture into, location to business matters a lot, a proper survey should be taking before starting up a business in a given area, you need to know the nature of activities carried out frequently at the location, businesses that do well and population.

Target Customer: after finding a good location, the next thing is to target your customers, having products/services to sell, you need to know the potential customers that will buy from you because without customers no sales.

Startup capital: after considering the location and your targeted customer the next is the business capital, you need to analyze the formation of the business and the size of the business

Demand: after considering the business location, capital, targeted customer, another thing to source for is the demand in the market, is it a seasonal or evergreen product or service, this is importing because it will get you prepared upfront about the market and also help you improvise another means for the upkeep of the business.

Business Registration: to gain authority in business it is necessary to register your business in order to legalize the business, once a business is registered it automatically gains approval from the government.

Rules and regulation: every entity, they have rules and regulations, it is, therefore, important to state it down when your memory is still fresh and free of business stress, instead of waiting till things get out of hand before drafting a quick rule which might not be relevant to the business.

Staff: on the process of undergoing the above mentioned, it’s also important to bear in mind the kind of staff you will want to work with you and also make plans to start recruiting, most persons wait till the business setup is complete before posting job adverts, it will ease the flow of startup if you already have your staff on board pending when the business will be launched.

Conclusion: they are other things to consider before starting up a business, the listed above are important and should be put into consideration. It’s also recommended seeking advice from professionals or from individuals already establish in the line your business to gain management skills and its related.

For questions, contributions, or suggestions, kindly state them in the comment section below.

Author: Zazasco

Am a professional with more than 5 years of experience in Graphic designing, Content Creation, Web/Mobile Development, Animation, Vfx, Photo/Videographer, Branding. Am so much passionate about what I do and always researching to improve myself to meet up with trends and demands, I love teaching and also open to learning new skills. For more info. About me send me a message indicating your questions and get a reply from me.