Crosspost - Top 10 reasons for business failure

Source - http://bit.ly/1a0VmXo

Some start-ups seem to get everything right the first time around. They are able to build successful products/services and a brand for themselves, and walk steadily on the path of growth. Some other start-ups are not so lucky. They struggle with being accepted by the public and, ultimately, fail and face closure.

What differentiates a successful business from the others? Why does a business fail? SupportBiz lists the top 10 reasons for business failure.

1.     Lack of market opportunities

You might have a wonderful business idea and think that your products/services are great, but that does not mean that your potential customers will think the same. One of the major reasons for start-up failure is the lack of market opportunities for their products/services.

The importance of market research cannot be stressed enough for a start-up. It is always advisable for an entrepreneur to conduct detailed market research to determine the viability of introducing his/her products/services to the world. Market research will clearly indicate the availability of market opportunities for the start-up’s products/services or the lack thereof.

2.     Lack of a business plan

Many businesses fail because they do not have a structured business plan ready to guide them when they need it. Several entrepreneurs underestimate the importance of a business plan, and avoid making one. However, that is not such a great idea.

A detailed business plan indicates the path that the start-up should take at different stages of its growth, including various aspects like marketing, product/service development, expansion, finance and customers. It serves as a guiding light for the start-up. It also provides the entrepreneur with an opportunity to thoroughly think about his/her business idea, and where he/she wishes to see it in the next five to 10 years.

3.     Inability to execute

The inability to execute a business on a day-to-day basis is another major reason behind start-up failure. Many entrepreneurs have a great business idea, but they are unable to take appropriate decisions, stand up to challenges, face risks and grab opportunities on a timely basis.

The services of an experienced business mentor can help a great deal in such cases.

4.     Inappropriate revenue model

Many businesses fail because they do not have a suitable and detailed revenue model. A revenue model serves as a guide for business, at different stages of its growth, and guides the entrepreneur’s actions and decisions. The lack of one can create confusion and frustration, lead to a lack of cash flow and, ultimately, the failure of the business.

Start-ups should try to avoid this situation at all costs. They should not underestimate the importance of a good revenue model, and have one ready well in advance. The services of a financial expert might be taken for this purpose.

5.     Inefficient team

An inefficient team of employees is another major reason behind the failure of a lot of start-ups. A team of inexperienced or inefficient people will not be able to take the right decisions at the right time, and not lead the business on the way to growth.

A good team is an asset for any firm, and hence, a start-up should invest in one right from the beginning. If the entrepreneur is inexperienced, he/she should try to find a co-founder who has managed his/her own business before.

6.     Lack of resource planning

Running a successful business takes a considerable amount of resource planning, including personnel, cash, industry contacts, marketing resources and distribution networks. Inefficient utilisation of available resources can lead a business to failure, as can the lack of availability of these resources.

It is, hence, crucial that an entrepreneur undertake thorough resource planning well in advance, and have a systematic plan for the same in place. If necessary, the services of experts might be taken for this purpose.

7.     Lack of intellectual property protection

A start-up might have the most wonderful of products/services, but they will be rendered valueless if duplicated by a competitor. This will, ultimately, lead to the failure of the business firm.

It is, therefore, essential that a start-up file for patents or copyrights on time, to safeguard their products/services.

8.     Increasing competition

An increasing level of competition in a start-up’s industry might spell out doom for it. If there are a number of firms coming up in the industry with similar, or better, products/services, it might put a start-up out of business.

To avoid this situation, it is advisable that an entrepreneur undertakes thorough research before launching his/her start-up. A start-up would be viable only when there is limited competition in the relevant field. It is always better for a start-up to choose a niche area, create products/services with unique features, and invest in building great customer relationships, in order to not be affected by competition.

9.     Insufficient marketing

A start-up might have the best of products/services, but that alone will not bring in customers, help it create a brand for itself, and grow steadily. Marketing efforts are inevitable to spread the word about the start-up and its products/services. Insufficient marketing can, hence, be one of the reasons for the failure of a start-up.

A start-up should have a well-thought-out marketing plan ready in advance, outlining the marketing activities it will undertake at different stages of growth. The channels of marketing chosen should be suitable to the firm and its products/services, and be able to reach its target customers.

10.  Giving up

Another common reason for start-up failure is entrepreneurs giving up too early. Setbacks and challenges are common in a business environment, and the entrepreneur should have the gumption to stick through the bad times. Often, entrepreneurs give up on their businesses when they face a series of setbacks. Had they held on, they might have seen better and brighter times.

Having a deep-seated passion for the business idea and faith in the plan are must-haves for all start-up entrepreneurs. These will tide them through the bad times, and help them take appropriate decisions to improve their situation. The services of a business mentor would be invaluable in such cases.

 

What you should consider before hiring a professional business consultant

What you should consider before hiring a professional business consultant

Professional business consultants are important part of today's competitive business culture. They bring their expertise and professional services to help you implement your business growth strategy, letting you focus on your core objectives. Professional consultants now an integral part of the way businesses of all sizes achieve better results and efficiencies. Hiring the right professional consultant can increase a business’ competitiveness, saving time and money.

Before you hire a consultant, think consider why you need to hire one. Consultants can help provide a short-cut to the information or knowledge gaps you might have identified in you organisation. Professional consultants will work best for those businesses who know what they are seeking, and have clearly defined projects or objectives. Is the professional consultant providing a service that does not already exist, or are you engaging them for only a specific period of time? Do you need the consultant to provide a solution to a specific challenge or situation, for example does your business require public relations services or some communication training? You might want to consult a PR expert such as Good Business PR Consulting.

A professional consultant should seek to understand the issues and objectives behind a project or business need. They should do this by asking questions and taking the time to listen to understand your business needs. to ask. It is easy to get flooded with data, facts and explanations. Knowing which questions to ask allows the consultant to sift through the information and focus on the details of the issue. Hiring a professional business consultant can help your business with the direction and guidance to implement new ideas, evaluate existing practices and procedures, and develop your business.

BIO

Danielle is a freelance copywriter who enjoys following current affairs and exploring Melbourne's myriad of coffee shops.

 

The 5 Employees Every Small Business Needs

Source - http://www.entrepreneur.com/article/225643

In the past few years, many companies were affected by the less than ideal economic conditions, and many instances, small businesses were hit harder than most. For these companies, the ability to be nimble and quickly adapt to changing economic conditions can be the difference between failure and success. However, there's an equally important factor that affects the fate of a small business: its employees.

Certainly employees and talent are the backbone of any company, but for small businesses -- particularly those with 50 or fewer employees -- their role can be even more crucial with right balance of skills and personalities having the ability to make or break a small business. Quite simply, the best business strategy in the world doesn't mean anything without the right people to execute it. That's why, more so now than ever, it's critical to carefully consider every hire and make sure each employee fulfills the right role needed for overall success.

 

When it comes to staffing your small business, here are the five employee "types" every company should have:

The Mentor: Many small businesses lack the formal training-and-development programs available in larger organizations, but that doesn't mean that your junior employees shouldn't have an opportunity to learn on the job. Fortunately, there are certain people who are born to teach -- even if it's not in the traditional classroom. Having a few employees on-hand who genuinely want to share their knowledge with others can take a load off small-business owners' minds. Not only does it eliminate the extra cost of hiring outside trainers, but it also offers a layer of institutional knowledge that only people on the inside of a company possess.

These company "teachers" can extend beyond just the technical skills and share some of the things that are unique to a business -- the culture, processes and how they fit into the business strategy. This education ultimately helps groom the next generation of leaders for the company, which also carries the added benefit of supporting the development of a succession plan, something that is typically challenging for small-business owners.

The Knowledge Seeker: Not every employee is born to lead, or wants to -- and that's OK. What's more important is that there are employees on staff who have a passion for the business and a thirst for knowledge. Such employees aren't satisfied with just knowing enough to do their jobs. They want to continue learning, whether it's on the job, through extra training courses or even graduate school. This type of attitude is something that can rub off on other employees and perhaps inspire them to further their education in some way. Additionally, this employee can also keep the larger team up to speed on the latest industry trends or technical advancements, always a good thing for staying current.

The Renaissance Man (or Woman): Small-business owners often wear many hats -- from chief executive to human-resources manager, so it helps to have employees on staff that are as equally multifaceted. People who can dabble in several different areas of the company -- pinch-hitters -- can be immensely valuable. Small-business bosses can become overwhelmed at the sheer amount of work to do at various points throughout the year, with limited staff to tap into to get it all done. So, with others to juggle some of the duties, owners can focus on growth and strategy.

The Morale Booster: For every small business that has managed to thrive despite the economic downturn, there are several more that have had an unbelievably hard time staying afloat. Working for a company that is going through financial hardships can have a severely negative impact on employee morale. That's why it's imperative to have some people on staff that can find the bright spots in what may seem like the most hopeless situation. It may not change the company's fortunes, but it can have a positive effect on employee psyche and culture, which has an impact on day-to-day business.

The Challenger: Having employees that support management's decisions 100 percent is never a bad thing, but it's also good to have a few people around you who will speak out and challenge the status quo -- or even a direction the company is considering. Surrounding yourself with "yes men" doesn't have any benefit for you as the owner or the business in general, simply because obviously not every idea is brilliant. Instead, what you want to cultivate is an atmosphere of healthy debate and discussion to be sure your business has strong strategies and ideas. Every now and then we all need a reality check -- and the people who are living and breathing your business on a daily basis are just the ones to give it.

Managing any size business these days isn't easy because of the financial pressures all are facing, and many would argue that small businesses have even more at stake. By ensuring that your company has these five types of employees, you can rest assured that your employee mix will be a competitive advantage that can be leveraged to achieve success.

Business News Blips for 01/20/2013

*  Run Your Business Like the U.S. Postal Service and Thrive  aka I have to disagree hard upsells are a turnoff - http://bit.ly/10KlZ1a

*  6 Surefire Ways to Get Business Referrals - http://bit.ly/WjLTC8

*  The Surprising Origins of 10 Major American Brands  -http://onforb.es/VGNBiJ

*  Why More Than 2M U.S. Workers Per Month  Leave Corporate Jobs -http://onforb.es/VeWP8n

*  5 Ways to Recruit Top Talent During Rapid Growth - http://on.mash.to/VeWVgi

*  8 Public Speaking Lessons from 57 Inaugural Speeches: The Good, The Bad, and The Ugly -http://onforb.es/WQ0Daq

*  Bobby Knight and Mike Krzyzewski Knew It: The Business Value Of A World-Class Coach -  http://onforb.es/UcvSiU

*  The Age of Small Business - http://bit.ly/11JKVVB



 

Rant - What I think the goverment could do to help small businesses

Taxes - We have some of the highest business taxes in the world, this with very complex and confusing tax laws. Added to the fact they the tax laws actually encourage business to offshore money and labor with creates a very uneven playing field for the small business owner.

Education - Sadly most public education is still geared toward creating drones for mass factories. This needs to change, schools need to encourage risk taking, the pain of failure and the glory of success, thinking for one self, strong work ethic and give them the skills they need to complete in the global workforce.

Leveling the Playing field - Its very hard to compete when large corporation are allowed to vote in those that will help them. File patents on anything and everything. Have priority given to them in contracts and if they fail given bailouts instead of letting them go under like they should in capitalism.

 

Rant - What I think the goverment could do to really help small businesses

Taxes - We have some of the highest business taxes in the world, this with very complex and confusing tax laws. Added to the fact they the tax laws actually encourage business to offshore money and labor with creates a very uneven playing field for the small business owner.

Education - Sadly most public education is still geared toward creating drones for mass factories. This needs to change, schools need to encourage risk taking, the pain of failure and the glory of success, thinking for one self, strong work ethic and give them the skills they need to complete in the global workforce.

Leveling the Playing field - Its very hard to compete when large corporation are allowed to vote in those that will help them. File patents on anything and everything. Have priority given to them in contracts and if they fail given bailouts instead of letting them go under like they should in capitalism.

 

Crosspost - 10 Reasons why Now is the Best Time to Start an Internet Business

Source - http://7pillarsofsellingonline.com/start-a-internet-busienss/

Time to Start a Business

The Story…

This one is a personal story.

I yearned to start a business. A business offered the freedom and the fulfillment that I was looking for.

Before starting the business, I decided to leave my job working at one of the Big 4 Accounting firms and enter sales to help me gain the skills I’d need to own a business someday.

Well…the heartache, frustration, and worry were almost unbearable.

Our neighborhood Boy Scout troop came by for their fundraiser that year. We had contributed regularly in years past, but we took their little donation form, and thanked them, but didn’t donate.

The embarrassment was almost too much for me.

I wasn’t making hardly enough with the sales job…we now had just pennies in the bank.

I took the leap of faith and started a business.

The business that we (my wife and I) started was selling physical products on the Internet. It helped me pick myself back up, feel accomplishment again…and…importantly, provide for my family.

There was just one problem…the country was entering one of the worst recessions in living memory while I was just getting the business going.

How could an Internet business survive during such unstable times?

Isn’t it a mistake to get involved in a business when things are so uncertain in the world?

Maybe…or maybe not…

Having built my Internet business in and through a very difficult economic period, and earning more than I ever had at my previous corporate job, I can tell you that a great business can be started at any time.

You may be reading this when times are great, but economies move in cycles…

There are advantages to starting a business in hard times, but whether in hard or good times, now is always a good time to start.

Here’s why (reasons during bad and good times):

1. Suppliers and Manufacturers are hungry for Business

In tough times, suppliers and manufactures are hurting. They need business and welcome business even if it’s from the small one-person company.

Businesses that would have turned up their noses at the “small guys” welcome every order they can get.

Manufacturers from overseas are willing to sell smaller quantities making it easier for you to buy their products with a smaller investment. You can then sell that inventory and reinvest the profits in your own business.

When times turn good again, you’ll have the advantage of an existing relationship with the suppliers, and they’ll continue to do business with you.

2. Folks are Thinking about Surviving not Building a Thriving Business…Reducing your Competition

When things are great, lots of people are willing to jump on the business bandwagon.

But when things turn south, folks tend to hunker down, cut their spending and just try to get by.

They’re not thinking about the opportunities out there.

That’s a plus for you because it creates less competition.

3. You’ll be set for Great Gains when the Economy Turns Around

By making a business work during tough economic times, you’ll be set for the turn around when things start hopping again.

You’ll already have the business built up, the systems in place, and the engine running. It’ll be time to outpace the competition who will just barely be thinking about getting started and ramping up.

It doesn’t mean that your gains will have to wait until things turn around. Our business has allowed us to travel the world even during a tough economy.

You’ll also have the wisdom that comes from having lived through difficult times and will avoid the mistakes that overzealous business owners make when the economy heats up.

4. It’s Never Been Easier to Get Started

Think about it: you can register a business online in under an hour.

The US registration and most state registrations can be done online. Finish the registration, and BOOM, you’re in business.

The Internet has changed the way we transact. You can now start a business without leaving your home.

The psychological barrier of “starting a business” keeps many from doing so, but now it’s so easy to get going there’s almost no reason not to.

5. More Tools that Give You an Advantage

In the past, if you wanted to sell real-world products online, you either needed to store your products in your garage or rent expensive warehouse space.

Now-a-days with programs like Fulfillment by Amazon, it’s a streamlined process where you don’t have to worry about warehouse space or shipping one order a time.

If you want build a blog following in your product niche, it’s never been easier to setup a blog with free tools like WordPress.

There are also dozens of options for setting up your own retail website where the major work has been done for you such as the Amazon WebStore and other eCommerce solutions that are very inexpensive compared to a few short years ago.

Other tools such as QuickBooks and TurboTax make it easy to keep your records in order.

The Internet itself is a huge boon to small business owners, because as a business owner if you have a question, you can search for an answer posted online from someone who’s been through what you’re going through.

In other words, you don’t need to know everything before getting started. There are plenty of tools and information to help you along the way.

6. Christmas is Just Around the Corner…

Even if you’re reading this in January, Christmas and the Holiday Shopping Season will come up faster than you think.

Selling online, whether from your own website or on Amazon or eBay, you’ll find that during the holidays, sales can jump to 5 times the normal number in a given week.

If you’re selling summer water toys, your holiday sales jump won’t be as big, but you’ll still be surprised what happens during the holidays.

It’s something to think about and plan for when starting a business selling physical products online.

The marketplaces like Amazon.com will give you a huge jump in sales if you’re doing things right.

So even if it’s January, look forward to the time you have to test and get products ready for the holidays.

Products need some time in the marketplaces to gain traction, so the sooner you can get your products there, the better.

7.  The Future is Determined by What You do Today

Tomorrow turns into today in less than 24 hours. Are you prepared?

Okay, a little dramatic there, but really, if you want something in the future, you need to start on the path to get it today.

You might want a debt free home, freedom to set your own schedule, means to travel the world…

Whatever it is that you yearn for, it’s not just going to happen by itself.

Action is necessary–Action taken today.

8. Opportunities don’t Last Forever

Have you ever had an idea, not done something about it, and a few years later seen the product you envisioned being used by someone?

It’s frustrating, and it’s a reminder that opportunities don’t last forever. Opportunity means “favorable time”…and that favorable time doesn’t mean time stands still.

That’s why getting started soon is so important.

9. Advantages of Starting Early

The early bird gets the worm.

Some opportunities are available to a select few. Others are available to all of us.

In either case, getting started early can give you a big advantage. You’ll have more experience and know-how to face the challenges that the late-comers have never seen.

It’s like looking back at the stock market and saying, “Why didn’t I buy Apple stock when it was only $8.59? I could have made a fortune!”

There’s an advantage to taking action sooner rather than later.

10. Think of What You’re Missing if You Wait too Long

Dreams.

Not the type where a velociraptor is chasing you down the halls of your middle school…no…we’re talking real dreams…the ones where you see yourself in the home you’ve wanted, the car you’ve wanted, the feeling of the sand between your toes on a warm weekday at the beach without having to worry about a job.

Have you ever had the thought, “I should have done this years ago”?

Maybe it was when you decided to leave that dead-end job or when you finally took that vacation you’ve always wanted.

Don’t let those dreams die.

Work towards them by discovering the engine that will take you there.

The vehicle to help me get on the path to realizing dream after dream was starting a business.

For you, it might be the same, or it could be something totally different.

The point is, find what will help get you there; seize the opportunities today.

Starting a Business isn’t for Everyone

Better put, running a business isn’t for everyone. It takes guts…a step into the unknown…

But other than an inheritance or the lottery (neither are very good plans)…where is there reward without a challenge?

Chances are if you’re reading this, you’re among those who can and will succeed because you value learning, you want to do it right, and there’s no good reason in the world not to.

If you’ve wanted to start a business selling physical products online, or have a business and want to turbo-charge your sales, sign up for the free newsletter where you’ll learn the secrets to running a successful business online.

Musings - Reasons why now is a god time to go become a Entrepreneur

With a bad economy and uncertainty in the markets, a few people have told me it's the worst time to start a business. However, I feel differently and here are my reasons.

Large Corporations have been buying up or muscling out small businesses. This has created an area where small business, instead of competing and trying to take on the big boys, should focus on filling niche markets or focus on consulting on what is the next big thing.

More and more people are looking for a fresh start to be able to work more on their terms and to have a larger say in the direction of the company. A small business can offer many perks that a larger business cannot--like bringing your dog to work with you or a flexible schedule. To some people, money is not everything. One of the reasons I dropped out is I felt like I was slowly killing myself at work. My health problems where mounting and my happiness was at an all time low shortly before I left the rat race.

Secondly, people are able to move quickly to take advantage of shifts in the market. It's no longer good enough to know what is going to happen tomorrow, but you have to know what is going on next week. Larger businesses would be well advised to use smaller companies that are more nimble as consultants to learn where to invest their resources for maximum gain.

I am not an expert in business, however, I do believe I present some very logical arguments and paths forward for small businesses.