A business idea is a tangible plan, which might result in the business prospering or sometimes business failure. When the later happens the entrepreneur asks himself why my business failed? And at the same time starts looking for solution behind business failure. Hence, the entrepreneur begins his research on how to overcome the business failure or vise-versa.
The process of finding/searching solutions to his/her questions, which involves different solutions which is an intricate process as it is directly related to business growth. This part of the business is called making up for the losses. This ideology is highly appreciated because it targets the mistakes and includes reviewing the mistakes. This includes finding the causes of business failure. This ideology is inclusive of tips for successful business by Atul Garg, the link of which can be found on our website.
The reason behind business failure
1. Inexperienced management team: The topmost or the major reasons that a business might fail is its management. The management on the top is the backbone of a strong business, decisions and strategies made by the management can decide the fate of a business well before it gets off the ground. Many decision makers (Directors/CEO’s) are often not aware of the business capabilities and the importance of creating long-term strategies and clear achievable goals, there is no point in having strategies or goals if the management teams do not have the adequate expertise at managing a business. Over the year I have seen and known people get promoted to management positions because he/she seems like a nice person and not due to their skill merits without proper management skills or training. The first is to sort out the rotten apples, irrespective of the team’s personal relations because business doesn’t have much scope for them if they are not productive, being family members is no exception to this ideology. Secondly, short-sightedness to pick the right players on your management team can prove to be a nonproductive step for any business. Sometimes, you might the most reliable team and have the best opportunities, finance, strategies and goals for a business and still fail without the right team to implement the strategies for a successful implementation. With less experience, the smaller businesses with less than 30-60 employees tend to become too attached to their employees and can’t fire them. They allow the business to continue running till it runs out of fuel, then the whole business suffers because off too much attachment and could not convince yourself to fire few employees.
2. Lack of Focus: Managers and directors can easily be distracted with too many minor tasks every day that their focus tends to shift, their focus deviates. Compatible manager or director will never lose focus on what’s important, or what is their priorities when it comes to work. Negativity lies when they get caught up in trivial perfectionism in the tasks which can and should be left to the employees. The short-sightedness is main reason behind the of lack in focus. Sometimes, the key employees have to remind managers and directors of a very simple fact that being busy is not the same as being productive. Guiding one’s self back on focus is hard and sometimes we all need reminding to focus on the task at hand, that will advance the business and produce results a.s.a.p. And that is why it is necessary to take charge and do not leave any room for lack of execution. Get someone strong to hold you accountable on a daily, weekly or monthly basis, or join a mastermind group.
3. Inflation: Quick pace and fast pace is the trend of today’s market, new products, new services, branding and re-branding. You must keep pace with the times, if your product or service has a dying customer and market. If you fail to see the trend moving away and the warning which clearly reads about the fall. In such cases be the first to adopt the changes and challenges to ride the waves of success.
4. No-backup: Be prepared for unexpected increases in the costs of things like utilities, materials, and labor. Keep up the pace by keeping enough reserve cash to carry you through tough times and seasonal slowdowns.
Small business tips
Small business are the leading sources of growth of Indian economy. These businesses are learning source for the intuitive market players because they are not much feared by loss as much as they are interested and motivated by growth. Such entrepreneurs believe in learning from failure in business. This ideology distinguishes them from other which results in high growth. They believe that failure is a learning tool and do not believe in giving-up.
How to deal with failure?
- Embrace your emotions
- Don’t Get Emotionally Caught Up in Failure
- Learn, review, revise
- Accept an appropriate level of responsibility
- Find what can build your energy back up
- Read more to grow more.
- Create a well-designed strategy.
- Manage Cash Flow Efficiently
- Prioritize the tasks that lead to change
- Keep an eye on your finances
- Take one step at a time
- Remove negative forces with positivity.
- Do not dwell in the past.
- Accept that failure is a part of business.
- Step Outside Your Comfort Zone and Try New Things
- Invest in marketing through social media.
Small business failures can be heart wrenching, but it gives the owners an opportunity to learn and tell them on how to deal with failures. They have their own story of failure, which can big or small business failure. Don’t focus on problems, find solution. Start small and count your successes. Reroute your journey to success with revised energy.