Starting a Business

It is not difficult to start a business! But it is difficult to start a profitable business that survives beyond the first year! Research suggests that businesses that fail in the first year do so either due to a lack of commitment on the entrepreneurs part or the business idea was doomed from the start. Lack of commitment The entrepreneur starts a business but they do not believe totally in the concept, product or service and they do not quite put the hours in to ensure the business is a success. Perhaps they fell into running their own business because of redundancy but would rather be employed in a managerial position in a large organization. You quite often see second generation businesses fail for similar reasons. The offspring of the original entrepreneur do not have the same commitment or enthusiasm and the business suffers a slow death. If you do not believe in the product or service you are offering it is unlikely your customers will. It does not have to be the best product out there, it just has to be the best product or service in the location or market sector. If you do not believe in the product or service change it until you do. Bad idea from the start Many businesses are doomed from the start. The entrepreneur gets blinded by their idea and does not listen to reason and proceeds without properly thinking the business concept through. An example may be opening a bar when many are closing down in the same area. Unless it is a new concept in bars then it is unlikely that yours would succeed while the rest fail. So do not try think of another area to go into. Opening a shop selling CDs when the music buying public get their music on line. The entrepreneur somehow believes that their business model is different when in reality the concept has been proven not to work time and time again. There was a time when many farmers wanted to open golf courses. They believed they would make more money from the land with a course than from farming. In reality so many farmers had opened golf courses that there were not enough customers. Warning: Do not expect to get good business advice from lawyers and accountants. They are not paid to give advice on whether the idea is good or bad and will usually benefit whether your business is a success or it fails. songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute songmute How do you get over these two potential stumbling blocks? Look deep into your mind and thoughts and decide whether you would be happy running a business even if it means long hours, and the grass actually being greener on the other side of the fence, but that you at least are your own boss. In many cases that has to be compensation enough since often the employed earn more than the entrepreneurs. Are you starting a business for the right reasons? How to avoid starting a business that is doomed to failure is slightly harder but you can minimize the risk by: Research Talking to friends and other business owners Appreciating that you may not be successful first time around Make sure you have access to resources to give the business a chance Try to pick a growth sector like for example internet sales, energy conservation, security as opposed to areas where business are leaving the market Be prepared to come up with another business idea You can start a business in a declining sector and indeed be successful but your business plan will need to reflect this. In 2009 the business sectors with the highest bankruptcy rates were: Builders Restaurants Shops Starting a business is a long term commitment. One can sell a business but it takes time, sometimes years and if it has only just started up you are unlikely to get back your original investment.