Starting up a business is exciting but it’s not without its challenges, and unfortunately a significant number of new companies fail within their first few months. However, knowing the main reasons why new businesses fail will allow owners to make sure they don’t make the same mistakes.
Lack of planning
If you’re excited about your business venture it’s tempting to rush into getting it up and running as soon as possible. However, lack of planning beforehand is likely to lead to failure. Take the time to create a thorough business plan – research, work out your budget and set realistic goals and timeframes.
Lack of experience
New businesses face grave difficulty if they are selling a product or service they know little about. You – and your employees – should be experts in your business field and full training should be provided before you start up. Similarly, as the owner you should be familiar with the ins and outs of running a business, from handling VAT to dealing with employee sickness. There are guides you can access on the Internet to help you with this, or you can book an appointment with a business advisor.
If you’re office is difficult to reach, all your potential customers will go to competitors that are easier to find, it’s as simple as that. There are lots of things to consider when picking a location, such as traffic, parking and the condition of the building, to name but a small few.
Not having an online presence
Nowadays, all businesses need a website. If you don’t have one, where do you expect your potential customers to find you? Long gone are the days where people used to reach for the Yellow Pages; now, the Internet is the first port of call when finding a business. If you don’t have a website you are significantly limiting your potential reach. Equally, social media is a powerful tool for businesses, so make sure you are present on at least two social sites.