Nearly all of us have wondered at some point in our lives if we’ve come up with a great idea for a new business. However, we usually get sidetracked by keeping our bills paid, taking care of our children or handling and a host of other critical matters. Considering the rather high failure rate for new businesses, most of us have probably lost nothing, especially in light of the numerous heartaches and depleted bank accounts that most new business owners must endure.
Yet some gutsy people do move forward and manage to get new businesses off the ground – only to watch them fail after running them for just a few months or years.
Here’s a quick review of some of the most common reasons why businesses fail, unrelated to the need for more capital.
Motivation and Planning Mistakes of New Business Owners
You started your business for all the wrong reasons. It’s never wise to start a new business just because you want to be your own boss or have more free time. In reality, you’ll probably wind up working many long hours before you ever start earning a profit. It’s also quite critical to feel passionate about the product or service you’ll be offering and to understand your product (or service) inside and out;
Your timing was off either personally or professionally. You must always conduct the proper amount of market research prior to launching any business to be sure your product (or service) is truly needed and that you’re the best person to meet that need. Also, you should never start a business while you’re enduring some type of highly stressful personal event -- whether that means a divorce, taking care of a newborn or looking after a dying family member;
You failed to choose good partners and/or advisors. Since it’s often unwise to “go it alone” in life, it’s usually important to start a new business with other professionals who have proven experience in areas that complement your skills;
You failed to create carefully researched short- and long-term business plans. You and your partners need to set early goals and know that you have the ability to meet them. Likewise, you may need to constantly revise your first long-term business plan in light of what you’re learning from your first successes or failures. Never be afraid to stop and regroup while requesting advice from all of your most trusted advisers, including your Peachtree City business attorney;
You gave little thought to your need for strong management skills. If you don’t have these types of skills, you should always wait until you find a trusted partner who can handle such tasks, even when you’re certain you have a great product;
You fail to develop a highly creative website for your clients. Even if you’re trying to market a service you personally provide to people that has nothing to do with the Internet, most of today’s consumers prefer to learn all they can about a company or service online. They also usually prefer to place their orders online (although others still prefer to use the telephone);
You expand your business too quickly. Many of us foolishly believe that “bigger is always better.” That simply isn’t always true. Make sure you’re profits are steady before ever daydreaming about expanding your product line or services.
To obtain help with handling all of your Georgia business planning needs, please contact the Law Offices of Shane Smith today. You can schedule your free initial consultation with a knowledgeable Peachtree City estate planning attorney by calling: (770) 487-8999.
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