If you’re planning to start a new business or plan to grow your business, it’s a great decision. However, it’s not as easy you think, when you’re looking for funding options. On the other hand, these companies offer many individuals with employment opportunities. Also, these businesses contribute to the overall economy growth as well. Given that, you would have come up with a business plan and proposal to look for funds. Without a proper plan, you’d not be able to run a business successfully. Moreover, the proposal and business goals would not convince the lending institute your ability to repay the funds.
Also, you might have noticed many businesses that opened and closed down quite soon. Have you ever asked yourself what the reason could have been for the company to fail or go bankrupt? With all the information above, there are a number of reasons that have caused businesses to fail. Therefore, knowing about these facts would help you in such situations. On the other hand, you’d be able to make better business decisions, once you start running the company. Given the above, here are some reasons for the failure of running a company:
Insufficient fund sources
One of the main reasons for the failure of a newly opened venture is the insufficient SME funding sources. These companies start the business with the savings or capital they have at hand. However, they don’t anticipate the costs, while operating it. Therefore, they might not be able to get proper funding organized.
Not the venture – wrong business decision
Alternatively, some individuals startup businesses, simply because another entrepreneur is repealing benefits from the company. However, just because another businessman was able to succeed in that venture, it’s not necessary that you would be able to achieve the same. There are many reasons such as different management styles, company goals and so on.
Improper management of the company
On the other hand, apart from the initial investment and SME funding, things could go wrong after you start running the business. That is, poor management such as book keeping, mixing of personal accounts, etc. could lead to bankruptcy of the venture. Additionally, there are many owners who use the money from sales for personal expenses.
You might have heard these stories from your own friends or even of those in business associations. Therefore, it’s important that you take these into consideration on a serious note. Be sure about the institutions that you wish to get funds from. With that said, before investing in any type of venture, research the options well.
Running an online based business is a great way to earn some extra cash or do your business with fewer costs. You do not need to pay the bills for having a physical structure and you can cut back on costs required for other expenses until you are fully established in that area. You can use multiple platforms to spread the name of your business and actually have the time to meet the product demand early on because the information will be there before. But online businesses also carry their own risks and sets of mistakes. Here are some of them listed out so that you can avoid them when making our own name in the corporate world.
Waiting for the banner call
For those who are thinking of getting your blog or podcast up and running for a while to create interest among the crowds, better not wait for a banner call to unfold your product lists. One of the major mistakes seen in the online corporate world is waiting for months and years just blogging and podcasting without actually giving back to the audience. If you are waiting for 1000 people to subscribe to your list to launch your new product, then beware that you might up losing whichever support you had in the first place. So, although it is nice to build up the anticipation, try not to keep running on it and wait for product launching. Try to put up a countdown timer on your web page design to keep your customers anticipating and stick to the timer when launching the product.
Give attention to customer requests and complaints and suggestions
It is vital that there is a customer contact page on your great web page design along with a request form for your customers to contact you. When you are listening to customers, do not pay attention only to those who have good things to say about you. The negative comments and complaints need to be given adequate service and not just lip service when it comes to resolving conflicts.
The old saying of ‘customer is always right’ must be your religion when running a business. Good online businesses that are successful always have their customers kept happy. Unlike in running a physical business, customers cannot just come to you and ask you questions right at that moment. When running an online business their messages and thoughts must be given replies within hours at maximum. If you take too long to reply then you will lose customers, if you do not reply then you lose customers too. If you keep on ignoring the negative complains then you will lose customers as well.Read More