According to statistics, 96% of businesses disappear in the first 10 years of their activities. It’s sad to behind these numbers there are real people with their feelings of enthusiasm and hope, people who put this business, effort, and their money.
But, it looks like a good feeling, hard work, and positive thinking is not enough to succeed in business.
Most people have wrong perceptions that a successful business finally becomes a matter of luck, but the reality is that business is not a lottery. Success in business means learning and applying basic business principles.
Here are five large entrepreneurs produced because they do not know or just ignore to apply business fundamentals:
1. Lack of clarity about where their business is headed
Many entrepreneurs enter business without completing clear goals, outlining clear strategies, and writing detailed action plans before starting.
They wrongly think that for small businesses at first they did not need to make a written plan. Focusing mainly on sales and solving current problems, they lose the ‘big picture’ and have no vision about the future of their business.
2. Less focus on what is really important for their business
Worried about selling at any price, they spread their efforts and resources in various directions instead of focusing on what’s important for their business.
They tried to be everything for all people instead of choosing their most important customer groups and directed resources to serve them.
3. Ignore their customers
Customers are the most valuable business assets. At the beginning of their business, most entrepreneurs encouraged sales instead of worrying to know that their customer’s expectations.
They do not do anything to communicate with their customers prefer to consider what the customer might think and expect. These assumptions are proven to be wrong in many cases.
4. Lack of cost control
Because they don’t take the time to write plans for their business, and they don’t have a budget and cash flow forecast, the risk of this entrepreneur to spend too much cost that is not needed.
5. Lack of Anticipation
The lack of vision about the future of their business, making them react to any change in the market instead of anticipating change and preparing previously to overcome it.
As a result of not being very clear about what business, do not develop business strategies and do not make plans, many entrepreneurs are fast or slow burned and trapped in the trap of lack of clarity and their own direction.