Monday, August 13, 2012

7 Common Reasons Why Small Businesses Fail

Small businesses fail not because of a single error. It is the result of repeatedly making small mistakes in running the business. If you or your business falls under any of these common business errors, take it as a warning and an opportunity to begin steering in the right direction.

Wrong connections. When you regularly associate yourself with negative and pessimistic people, your way of thinking is affected. You unconsciously acquire whatever character they have. Negative attitudes have no place in your business and in your career. Associate yourself with the right people, and stay close to people that you would look up to in terms of success and direction.

Lacking the commitment to finish a project. Many entrepreneurs do well with starting businesses and projects. What distinguishes the successful entrepreneurs is their commitment to finish. Most business owners start a business then when problems arise, they get discouraged and stop. Some just lose their interest and discontinue what they started. If you want to be successful, you have to finish what you have started. Do not quit on the first hurdle.

Thinking like an employee. Many business starters who just left their jobs as an employee normally commit this mistake. An employee is focused on avoiding loss and preventing operational errors. He chooses to save money by doing everything by himself. Eventually, he fails. When you become a business owner, think and act accordingly. An entrepreneur attracts success instead of avoiding loss, and delegates operational tasks to hired individuals while he keeps himself busy creating ways to attract more success.

Choosing the easy way. As your business progresses, you will encounter problems that have several solutions. Sometimes, the easy way is the right way but sometimes it isn't. Sometimes, the right solution requires more effort and is more expensive, and the easy way is lazy and can cost you more in the long run. When you choose the easy over the right way, you will miss opportunities of learning, and you could commit some very costly errors.

"Annoying" your way to success. When you annoy other people in order to make yourself successful, eventually you will lose your credibility, then your business. People hate being bothered by repeated sales phone calls, junk email offers and unnecessary tagging in social networks. The way we attract others has a big impact on how they feel about us. Consult an expert if you need help finding sales leads, the right way. It is more gratifying when people come to you.

Selling cheap. If you sell yourself by being cheap, your business value decreases and you eventually lose. You may sell fast but your revenues will be low and you will attract low value clients. It is challenging to compete in the market based on price but when you compete based on unique value added services, you have fewer competitors and you will rise above the low value businesses.

Unwilling to experiment. Many people are great with coming up with ideas but are not willing or are not brave enough to try out new things. Some business owners are afraid to take risks, and prefer to stay status quo. You will never know unless you try. The most successful businessmen are those who are willing to experiment to grow.

Use this checklist to stay on track and avoid the pitfalls of those who did not make the shift to run a more successful business.


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Chris Makell, creator the "6-Figure Small Business Incubator guides entrepreneurs to be in the truth of their business so that they experience "real" freedom, with ease. Get your complimentary list of time saving tools at http://www.chrismakell.com/resources-2/top-10-resources/


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