Sure Signs Your Business Startup Will Fail

Most new businesses fail within the first few years of existence. While there are a number of specific reasons for these failures, most can be traced back to a failure to employ business fundamentals. The problems can often be identified long before the startup is even launched. Here are five sure signs discussed by Oleksiy Nesterenko that a new business is headed for failure.

No Business Planning

A ready-made, written business plan is NOT sufficient. Rather, an entrepreneur must do the work to develop a road map for their business idea, from pre-startup through sustained profitability. Without a well-defined plan, it is impossible to make the right decisions, secure the right funding, or find the right customers. Once the details of the startup are researched and defined, putting together a formal, written business plan is a breeze. But, no quality business plan can be created without the planning work behind it.

Unwilling to Commit Resources

If your business idea involves very little effort on your part, very little of your time, and no startup cash from your pocket, you are completely ready...to fail. Startups require work and cash to succeed, and less of one requires more of the other. Sure, there are examples of successful businesses that were started on very little money, but those ventures require significantly more time and effort to get off the ground. If you are planning on securing investors for the startup, they will expect to see that you have risked your own money before they are going to risk theirs. Be realistic -- start saving NOW for your startup, pick up extra work where you can, sell off your extra stuff. Set aside time to begin planning your business and expect to dedicate 60 hours or more per week to the venture once you commit to it full-time.

Don't Know the Competition

No matter how great your business idea, it is critical to know who else is filling that need in the marketplace. If you don't know your competitors, you might be opening a hamburger stand at the back of a McDonald's parking lot -- entering a market in which you can't compete. Successful startups have a differentiator that makes their product or service stand apart from the other options or they target a niche that the existing competitors are not effectively reaching. But you can't define your unique selling proposition without a deep knowledge of your competition.

Don't Know the Customers

Marketing can be the toughest aspect of a startup, and if you don't know who you are trying to reach, you'll never reach them. It is a common misstep in new business to waste enormous amounts of cash on useless marketing efforts. If you do your homework to figure out who you want to reach, selecting the right marketing tools to reach them will be much easier.

Not a Numbers Person

It is absolutely ridiculous to consider entrepreneurship if you are not willing to figure out the numbers. Business is all about the numbers -- money in and money out, marketing cost to sales ratios, profitability ratios, expenses, taxes, the list goes on and on. Even if you haven't considered yourself "a numbers person" in the past, it is critical to let that idea go and become a master of business finance. None of the math is particularly difficult, and understanding the financial reports is key in making the right decisions to grow your business.

No matter what type of business you are planning to launch, the basics are the same. You need to become an expert in the business fundamentals of planning, marketing, and financial management. You must be prepared to commit the time, money, and effort necessary to develop your idea. And, you need to be aware of (and avoid) the common pitfalls that lead to certain failure for so many would-be entrepreneurs.

Hire Oleksiy Nesterenko Starup Finance a startup consultancy to hold your hand as you enter into this new world of success and achievement. Allow us to advise you and to assist you every step of the way. We'll get you up on your feet and operating in the most effective way, as soon as possible. Oleksiy Nesterenko Startup Finance and Consulting Services is qualified and equipped to assess your business and all of its needs before you have to make any important decisions.

CONTACT
Oleksiy Nesterenko Startup Finance
Los Angeles, CA 90024
Call +1 (310) 710 4248
Mail: info@oleksiy-nesterenko.com
Website http://www.oleksiy-nesterenko.org/