WHY BUSINESSES FAIL – AND HOW TO START YOURS
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How does it feel when you are in control of your destiny and have the luxury of choosing the people you work with and those you do business with?
Business Ownership gives you the flexibility to create a work-life balance; it allows you to follow your passion and chase your dream. Through working on live business challenges, you will learn to solve problems and prioritise resources by taking an analytical, cost-effective approach.
Business ownership gives you financial independence, and you get to become more creative and free to make your own decisions.
What Do Businesses Fail?
Have you ever wondered why so many businesses, after so much investment, collapsed at the point where they were meant to expand and consolidate in the world market?
Many great businesses fail to succeed due to poor financial management, Leadership failure, a lack of uniqueness and value, inability to meet customer needs, unprofitable business models, Rapid growth, and over-expansion.
You may have a great product or service for which there is strong demand, but your business is still failing. It may also be that your approach is mediocre.
But do not let financial concepts or other factors that make businesses fail scare you off from starting your venture.
Starting a business could be very risky and difficult, but setting goals that help the business stand out from other competitors gives you a greater advantage.
The term Business refers to an organisation or enterprising entity engaged in commercial, industrial, or professional activities. Businesses are the backbone of an economy. They provide products and services that can be purchased by individuals and other companies.
Every business requires a plan because a well-planned business is likely to stick to the objective outlined. A business plan is a formal document that outlines a company’s goals and objectives and lists the strategies and plans to achieve these objectives.
Determining the legal structure of the business is an important factor to consider, this is because owners may need to secure permits and licenses and follow registration requirements to begin legal operation.
Business activity can take place anywhere, and it could be in a physical storefront, online, or on the roadside.
Business is not restricted to one type, but a variety of businesses exist around the world. It ranges from sole proprietorship, partnerships, corporations, and limited liability companies.
A good name is often one of the most valuable assets of a business; business owners need to choose the name of their business wisely. Your business name should fit the type of organisation you plan to run, and it should be catchy.
A business that can differentiate itself from the competition has a much better chance of success than “ME TOO” businesses that bring nothing to the market. If you want your company or business to stand out, define what makes your product and services different.
A Unique Selling Proposition (USP) is a well-thought-out statement that helps a company distinguish itself from other businesses in its category. To stand out, your business needs these traits:
✅Convenience
✅Reliability/ Dependability
✅Quality
✅Superior customer service
✅Creativity
✅Offbeat humour and Emotion.
But most importantly, consistency is the key. You must be able to win the trust of your customers.
How To Start Your Own Business
To start your own business in a competitive world market, there are steps you must take.
- Conducting market research
- Developing a business plan, seeking capital, or other forms of funding.
- Choosing a location and business structure
- Picking the right name
- Submitting registration paperwork, band training tax documents(employer and tax ID)
It is also a good idea to set up a bank account with a financial institution to facilitate your everyday banking needs. You must know your target market.
It is time to start your business venture and experience financial independence.
