Oh, what a joy it would be to be certain that your newly founded business is 100% fail proof. Unfortunately, there is no way for this to happen. If there was, there would be tens of millions of entrepreneurs with successful businesses across the country. There are simply too many factors to consider to be absolutely sure about this. There may not be a way to start a completely fail proof business, but there are some very important planning aspects that can help you understand how fail proof your business is.
One of the biggest factors to consider when starting a business is capital. Simply put, money is key. Do you have enough money to pay for inventory, supplies, payroll, rent, accidentals, etc.? Will your products or services be valuable enough and consistently bought for you to pay back investors, bankers, etc.? These are crucial, logistical questions that you need to address before you start your business. This might seem like a very obvious factor to most, but there are some who will overlook this and some who don’t have the real answers. Planning and budgeting are essential to the survival of your business, so don’t be afraid to double or triple check the numbers.
One of the first factors you should consider is whether or not your product or service is effective. This obviously depends on the specifics regarding each individual business. Since you know everything about your company, ask yourself these questions:
“What is the problem I am trying to fix?”
“Is there a demand to fix the problem?”
If you can identify the problem and are certain there is an interest or demand in your product or service, you are doing great, but also ask yourself this question:
“Does my product/service completely fix the problem?”
If your answer is no, perhaps you need to rethink what your product or service should do. Maybe you need to add another product or service that will solve the remaining issues or maybe completely rethink the whole product or service. Again, it all really depends on the individual business, however, the end result needs to completely solve the problem you initially sought out to fix.
Another large factor to examine is competition. Are there other businesses, specifically well-known or long established businesses, that already command a significant portion of the demand. It’s always good to know who you will be competing against. They don’t say, “Keep your friends close and your enemies closer” for no reason. Knowing how much they make, how much demand they get, and how much they charge should be a priority. This information will allow your company to be just as much of a competitor to them as they are to you. Make you products or services competitive in price, prove your worth, and earn your portion of the demand. If you can’t be as competitive in price, be competitive in quality or provide a product or service (one your competitors don’t) in order to stand out. Having higher quality products or services or having an exclusive service or product can be the deciding factor for some consumers.
The last major factor you need to examine is your team and leadership. Do you have talented individuals who are great at their jobs? Do you have an effective leader that is capable of managing your team? This is perhaps one of the most overlooked aspects of business. Not having a cohesive, effective team and not having the right individual in the leader role can be responsible for a significant portion of a business’ failure. Hire the right people for the job. Review each employees’ performance and evaluate their effectiveness and efficiency. If someone is not meeting the standards you’ve set or not contributing enough, don’t be afraid to replace them with someone who can and will. Running a business is a team effort and you will most likely not achieve your goals or be successful if your team isn’t meshing or working well.
It's always good to over plan things. It will make things a lot easier in the end and should allow you to meet your goals sooner than later, so you should carefully consider these key factors when starting a business. I leave you with a quote from author, consultant, strategist and ministry founder, Andrena Sawyer,
“Purpose without preparation is meaningless.”
To keep up with The Failure Report, you can follow us on our social media here:
Instagram - @thefailurereport instagram.com/thefailurereport
Facebook - @thefailurereport facebook.com/thefailurereport
YouTube - The Failure Report youtube.com/channel/UCSZIgfqswb6NyBhTdm-ZJ3A
LinkedIn - @thefailurereport1 linkedin.com/company/the-failure-report1
Twitter - @reportfailure twitter.com/ReportFailure
Pinterest - @failurereport pinterest.com/failurereport
You can also keep up date date by visiting our website thefailurereport.org