Do you have a business that once thrived and you’re now struggling with the competition around you and are now struggling to keep your business going or have you recently started a business and your still struggling to get the business off the ground. If so you may need the help of Business Angels or Venture Capitalists.
Most new businesses struggle for the first 5years for reasons including: -
Cash Flow – having actual cash in the bank is always an issue for businesses.
I am too busy to deal with it now – new business owners usually think that a task that needs doing can be done later and keep putting it off. An example of this is putting supplier invoices on the back burner – doing this will result in cash flow problems.
Blinkers – Don’t judge people by how they look when they walk into your shop serve all your customers the same with a smile on your face.
Customer Complacency – you may become good friends with your customers but you have to remember you have customers and suppliers. To keep your customers you have to work hard as you may lose them to your competition.
Competition Complacency – your competition will always be trying to be better than you by plotting new ideas. If you’re the better business and they’re the wounded business they will fight hard to become the best business.
Bad Employees – in any business you need great employees who are enthusiastic and well trained. Bad employees will put off your customers.
Flexibility – is a must within any business, if you run a coffee shop and you don’t serve cappuccino and a customer asks for it see what you can do and adapt your menu of coffee to your customers needs.
Location, Location, Location – if you have a lovely boutique in a back street where no customers can find you let alone see you your more likely to have business problems. If your boutique was in a high street you’re more likely to get customers walking in.
Bad Planning – always have a good business plan behind you, what you want to achieve in 2-5years what your goals are in the future and make sure your business plan is water tight and there are no errors within it.
Over Expansion – you’ve recently started your business and it’s going well so you decide to expand. If you try to expand too quickly your more likely to sink not swim.
No Website – so many customers know use the Internet now and will find a business there then visit it if there’s a store. So make sure you have a website and that you promote it well.
Putting all your eggs in one basket – if you determine the risks that may happen you will have a plan on how to fix these problems. Thinking your business will have no problems along the way will make it harder for you in the long run. Don’t always rely on one customer, if that customer pulls out you will be in money problems.
Insufficient Funds – always make sure you have sufficient funds before you start up your business. Allowing yourself time to arrange funding for your business is a good idea, if you haven’t got enough money wait a couple of months until you have.
Entrepreneurial Stubbornness – if you are a entrepreneur have you felt like you have an idea but can’t get it out of your head this can be called entrepreneurial burnout. If your idea has faults fix them but if your idea is good and you don’t see any problems leave it be don’t keep changing it.
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