Many a times, people start up business just to get rich quick, to have enough time with the family, and some others start just to be bosses and be counted among business men. While those are benefits some successful entrepreneurs achieve after years of hard work, they are not reasons to start a business.
### POINTS TO CONSIDER 1 When business is started for the wrong reasons 2 When business is Poorly Managed 3 When the capital is Insufficient 4 When sited on a wrong location 5 When lacking proper planning REFERENCE *** *** ### DETAILED EXPLANATIONS *** ### 1 WHEN BUSINESS IS STARTED FOR THE WRONG REASONS Many a times, people start up business just to get rich quick, to have enough time with the family, and some others start just to be bosses and be counted among business men. While those are benefits some successful entrepreneurs achieve after years of hard work, they are not reasons to start a business. *** ### The right reasons for starting a business for success include: • There is a passion and love in you for that particular line of business; you’ve conducted an investigation to ascertain that your product is of high demand in the market. • There is a drive, determination, patience and a positive attitude in you for that particular business. • You are not afraid of whatever would be the challenge that'll come along with the business, you don't even exercise fear of failure. You are ever ready to learn from your mistakes, and use these lessons to succeed when taking the next around of action. • You like other persons, and this is seen in your honesty, integrity, and interactions with them. You get along with and can deal with all different types of persons. *** *** ### 2 WHEN BUSINESS IS POORLY MANAGED There are diverse reports on business failures; all seem to point to poor management in areas such as finance, purchasing, selling, production, and hiring and managing employees. The entrepreneur should be such that recognizes the area where the business is not doing well and seek assistance. To remedy the problem, small business owners can educate themselves on skills they lack, hire skilled employees, or outsource work to competent professionals. An entrepreneur shouldn’t neglect his business, as such can lead to the downfall of the business. Care must be taken to regularly study, organize, plan and control all activities of the business operations. A good entrepreneur should be skilled at strategic thinking, able to make a vision a reality, and able to confront change, and envision new possibilities for the future, able to go higher in the market share. *** *** ### 3 WHEN THE CAPITAL IS INSUFFICIENT Some entrepreneurs do use lots of money furnishing the offices, and later discoveres that there is a limited fund for production of good. New business owners often don't understand cash flow or underestimate how much money they will need for startup and they are forced to close before they have had a fair chance to succeed. It is important make accurate calculations of how much money your business will require. An entrepreneur should know the costs of starting your business as well as the costs of staying in active in business. *** *** ### 4 WHEN SITED ON A WRONG LOCATION Location is critical to the success of most local businesses. If your business requires walk-in traffic or a professional location to meet with clients, a good location in the right community is pertinent. A bad location could spell doom to even the best managed enterprise. You need to consider siting your business; where your customers are, where you're accessible easily, where your needed raw materials are readily available, where there is electricity for storage and production, location of competitors, condition and safety of the building, and receptiveness to a new business at a prospective site. *** *** ### 5 WHEN LACKING PROPER PLANNING Planning cannot be overemphasized. It is the integral part of the business. Strategic planning is the key to the success of any business. When there is proper planning, there will be direction to follow. It is imperative for all businesses to have a business plan. *** ### Components of the business plan should include, but not limited to: • Description of the business, vision, goals, and keys to success • Market analysis • Workforce needs • Potential problems and solutions • Financial: capital equipment and supply list, balance sheet, income statement, and cash flow analysis, sales and expense forecast • Analysis of competition • Marketing, advertising, and promotional activities • Budgeting and managing company growth *** *** ### REFERENCE: [Business know-how](https://www.businessknowhow.com/startup/busines-failure.htm) *** Read Part one [Why businesses fail I](https://serey.io/met/@drstarry/why-businesses-fail-i) ***
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