Considering Business Administration, 66 percent of
businesses make it for two years, 44 percent make it for 4 years, while
22 percent make it for 8 years. Only few survive for an end less time. Why some
businesses fail or succeed depends on ones character and attitude towards the business, although there are little mistakes that could sink a business in no time.
Make your business grow by avoiding these expensive mistakes.
<1>.CORRUPT
EMPLOYEES : If your employees are corrupt, there is no way your business can can progress or move forward. So check all those working for you if they are clean, and flush out the bad ones.
<2>. BAD LOCATION OF BUSINESS : When starting a business, getting a good location is very essential. You must ask yourself question which include
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<3>. BAD CAPITAL STRUCTURE : You will agree with me that a large number of businesses that fail took on too much debt. Make sure you pay a careful attention to your finances, monitor all the money coming in and going out and keep all it's record.
<4>. OVER EXTENSION : Wanting to be everywhere without the necessary facility or equipment, thereby giving or selling out substandard product. Instead of doing this, start with realistic goals and allow yourself to grow as needs be. Therefore let your income determine your hirings.
<5>. UNREASONABLE SPENDING : So many businesses start ups spend their investment money before money begins to flow at a good and positive rate. As money comes in, spend it wisely and use it to re-invest in that same business.
<6>. INADEQUATE RESERVE OF FUNDS : Businesses fail because of failing to prepare for cost that can't be controlled. E.g Natural disaster, increase of material. So keep enough reserve to protect your investment.
<7>. LACK OF MARKETING SKILLS : If you don't advertise your product, there is no way people will know you are selling something. So start advertising your product on the radio,television,internet,newspaper.
<8>. NOT LISTENING TO CUSTOMER : If you don't pay attention to your customers, listen to their complaints and give them what they want, they may likely look else where.
<9>. BAD EXECUTION: Employee incapacity and bad accounting control ca really run a business down flat. Make sure the procedure for accomplishing a task is strictly adhered to.
<10>. INABILITY TO ADAPT : Been mighty today does not guarantee the mightiness of tomorrow, so you need to adapt to changing times so as to survive the toughest business climate.