According to the Ministry of Industry and Trade – 70% of small and medium businesses that open each year, closing in the first year of existence, and 20% more – in the second year.
90% of new businesses are closed during the first two years of their existence!
Is this fate? Do not be otherwise?
Let’s review some of the typical mistakes business owners make their way early:
1. The reason the decision to establish an independent business: usually does not have anything to do with the ability of the entrepreneur running a business. The reason is usually acquired professional knowledge or experience gained in a certain field, they bring a decision to open their own businesses in this area. It’s definitely not enough to manage a business.
2. A lack of equity or equity utilizing all the early stages of establishment, without worrying about credit frameworks that will allow continued operation of standardization.
3. Known to produce, but do not know the market and do not know to market and sell.
4. Small business reference method – “When we get to the river – we’ll move it.” Often new entrepreneurs believe that opening a business, since not a big investment and big business – will be able to solve all problems arise during the current operation. It does not happen.
Although an entrepreneur and investor will not enter the project of building a business without preparing a business plan, carry out market survey, to examine all existing credit financing options in terms of manning and organize the major functions of management: marketing manager, finance manager and director of manufacturing. That’s exactly what not to do the majority of small business entrepreneurs: they sped way.
What do we do?
First of all – seriously seriously your business idea.
Try to think and imagine how you want your business will look like in five years or more. Do not be afraid to think big!
When your mind’s eye you see your great business – began to review its organizational structure, the different functions that enable you to manage, and compare it to what you know or intend to do.
All the functions you can not make yourself – can not be left without a solution to the small business: prepared yourself in areas you lack knowledge, hired the services of good consultants guide you in these areas until the business grows, hired the services of a permanent employee to perform them. Well-prepared big business infrastructure is already in the initial activation of the small business.
Because it is small – would be great.
Or quits!
Written by Toronto Escorts