Mistakes in business 😱
95% of the business fail in just one year and other 4% business would fail in first five year only one percent of the business survived and able to make profit . so , today i tell you what are the common mistakes done by most of the entrepreneur , which you have to avoid . This data is collected from various sources such :-
Reasons of failure in business are mention below :-
1). Customer Need
Biggest mistake in most of the businesses is they not understand there customer's need . They only focusing on there own revenue or profit and this mindset is not working in any business because business is only successful when your customer need is full fill
Example of some successful companies by satisfing there customer's need
a). Google's :- by helping there customer's to know more
b). Facebook :- by helping there customer's met with more friends
c). Amazon :- help customers to shop from home
#tip1) Focus on you customer's need and let the customer focus on you money need .
2). Negative Cash Flow
/ Negative Working Capital
It is one of the most important reason of failure of most of the companies . It means when a company spend more money then its make during a specific period of time . Always check your business have positive Cash Flow because you need cash to run the operations of your business and without cash you can't survive
#tip2) try to aside an amount of cash every month . So , you can run you business successful during the extreme conditions like covid
3). Expansion with Negative Margins
The biggest mistake most of the businesses do is :- expanding their business with negative margins . Most of the business owners think they can adopt loss leading strategy or after a few years when they will increase there market share , they can increase there margin . But believe me 99% of the business are fail to recover their margins
#tip). Go with positive margins if you have low revenue because negative margins means death of business
4). Lack of Manpower
It is the key reason in the fail of the business because only one person is not able to handle all the operations of business . He/ She should need experts who guide him , who can understand his/her thinking and help him to execute a plan .Most of the businesses fail because there owners are unable to find a good manpower or unable to decentralise there duties or stuck in business operations and unable to focus to key areas.
#tip4) always try to decentralise you basic work to junior employees and focus on only key areas.
5). Product Positioning
It is the most important responsibility of top management and marketing management to correctly ' Position a product ' . Positioning of a product implies that you should know you product like suitable for which age group , suitable for which class of people etc . Most of the business will fail because they are not able to correctly position their product in the market and not know their real customer
Big brand which position there product :-
Thumps up :- taste the thunder
Nike :- just do it
McDonald's :- I am loving it
#tip5) first step in the business is to know your product . So , you can market it well
6). Converting Feedback into Feed
It is the main responsibility of any business management to convert their feedback into Feedforward because this method will help businesses to improve itself and it's mistakes . Most of the business fail because they are able to convert their customers feedback in to feedforward .
#tip6) don't let go any customer easily because without customer business is like without sole.
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