People go into business for many varying reasons - but most businesses fail for the same reasons.
I've had quite a few businesses that have failed, and it's all down to me - but at the time, I blamed everything, from business rates through to not being able to get enough investment for speculation.
These things can effect business yes, but, what I learned is the way in which we deal with these stumbling blocks marks out our route to success (or failure!). If we submit to the fact we will never get the money to pay for what is needed, we tread water, and eventually sink. If we up our game, then we float, and eventually reach dry land.
Most businesses fail because the business owner didn't find out about things, such as Rates, Tax, or didn't research their market well enough, or didn't expand their range enough - and all this happens generally within the first 12 months of opening.
The sad fact is, that for some people reading this, they will have stumbled upon it out of pure desperation - because their business isn't doing what they hoped it would.
Let me cease the negativity right now then, and make you a promise. I Promise you, that so long as you're already not sunk, so long as you have fight left in you, it's not too late to change the way your business is performing.
Lots of people make lots of money by telling you what you should, and shouldn't do - there are books on it, and courses, whole seminars, and conferences, and if that works for you, then great...
But most people don't have the time, or the money to go on such things. Most people in businesses that are dying are living hand to mouth.
So, have some free stuff on me, and this wonderful forum!
1. The first difference between Successful people, and people who fail, is mental attitude. PMA is king (Positive Mental Attitude). Force yourself to smile, and greet everyone you meet with a warm welcome. Don't do this - you fail. People buy People.
2. Dress for success - This doesn't mean going out and buying a Gucci suit. I own one, and it's reserved for my funeral. We have a corporate uniform, and everyone is equal at work, so we pretty much dress the same. More than this, dressing for success includes personal appearance. Wake up to what you look and smell like. When I interview for new co-workers, I see a whole range of people, from the ideal candidate, down to someone wearing half their breakfast and stinking of cigarettes and body odour. Personal Hygiene is a key - wash yourself, and your clothes, iron, starch, and polish everything, look in the mirror, comb, and smile. You will get the job with me instantly, or you will get my business instantly, even if I have to work a little harder to make everything happen. Presentation is everything. You and your business.
3. Diversify - Ok, so you know your products well, the customer doesn't, right? Wrong! Whether you're selling physical stock, or services, the customers expectations can be wide and varied from your own opinions. If you are, for example, selling Umbrellas, and pink is your favourite colour, you would be nuts to just stock Pink umbrellas, even if your store is called 'The Pink Umbrella Shop'. You of course get loads of different colours in, loads of different styles, and when summer hits, it becomes a parasol shop. The same applies for EVERYTHING. You sell insurance, what? just the one policy?, Mobile phones, the one brand? The one choice of accessory? Of course not. You have to become an Aladdins Cave of stuff, so your customer is never disappointed, and you satisfy their every desire. Got no money to do all this buying stuff because you've spent out on things that don't sell? Ebay them, re-invest.
4. Market - Most early startup failures don't even attempt to market. They don't know how, or they have a lethargy that prevents them (See PMA). If I am awesome at what I do, and I don't tell anyone, my awesomeness becomes the best kept secret. As far as Ego - that's great, as far as business, that's fatal. If you're selling cheese knives, you have a stock of 10000000 in your warehouse, how is anyone going to buy them unless you tell people about them. Leaflets, and continual talking about your Brilliant Cheese Knives will sell heaps of them. You get them out there, you pitch them, you give out free samples to massive customers to try at home - so far, the cost of this is minimal. You get a website, you invest time into good SEO (Learn about it).
My most successful business was started when I was flat broke. I started it with £50. All the money I had in the world. Word of mouth Marketing brought customers, customers brought money, money was reinvested in marketing, marketing brought more customers, more customers brought more money, more money was invested. 10 years on, it's all still in place.
5. Speculate to Accumulate - No one who has been successful started off by saying "Hmm... I dunno". They took a gamble, but, there's a difference between being a good gambler, and being a total loser. You'd be hard pushed to find sun beds in Kenya. But there are snow machines in the snowy pistes of the Alps, and I've sold mobile phones to people who can't hear (So they can take advantage of the SMS capabilities to help them communicate) Yes, think outside the box, but before speculating, ensure there is unbiased support for the project. Refer to 'Dragons Den'.
And there we have it. Simple!
If these were the only issues we face in business, we'd all be millionaires, but of course, there are loads more, and the way in which you deal with all issues marks out success. Yes, it's not nice meeting wage bills, rent and rates, when this eats into margins which you feel should be profit, but the key is to make more money, sell more, grow, and to do new things that help make that happen. Don't rely on any one angle.
Finally, if you remember nothing but this saying, please apply this to your situation:
"If you keep doing what you've always done, you'll keep getting what you've always got".
