June 25, 2018 | By Mason Roberts
Failure is something that happens frequently, as is success. There is a fine, thin line between the two. Many times, the risky things a person does to become a success can rather result in their downfall. This is the same for owning a business. It is not an easy task. If someone told you it is, they were lying. If you wake up tomorrow and decide that you want to start a business, expect bumps along the way. You will not do everything perfectly. With this in mind, though, there are things you can do in avoiding said obstacles. Many small businesses go into this endeavor blind, which means they could not even predict the result they will get, no matter how bad they want it to be positive.
Reviewing what you could go wrong in your business is smart, especially when trying to do things right. Being a hard-working boss, with all effective business methods in mind, is one of the clear ways to achieve all of your career goals. So, here are the four reasons why businesses fail, and what to do about them.
1. Hiring The Wrong Team
The staff you build to help build your dream business is one of the most important aspects of the entire process. With a weak team, you will have a weak foundation. Again, things that go hand-in-hand. The worst thing you can do for your business is hiring people who will not value the importance of it, just as you do. Many business owners try and do everything themselves until they reach a breaking point, then they are forced to hire their employees in a sort-of rushed way. This will result in poor results where your team is concerned. All in all, your employees are the backbone of your business. They are one of the main reasons as to why your business is running smoothly, or why it is not. While there could be other factors involved, the dependability of your team is up there on the list.
Now, you may be thinking, how do I avoid this? The answer is simple. Make the interview process as lengthy and tedious as you can. Treat your business as your baby and your potential employees as nannies. You wouldn’t want an unreliable nanny with poor judgment taking care of your child, would you? Well, you shouldn’t want them taking care of your business either. Ask the hard questions. Get down to the nitty-gritty of what kind of person is sitting in front of you, then decide if they would be a good fit for your business.
2. Not Having A Plan
You can dream about the product you want to create all day, but without a plan, nothing will work. Countless business owners dream up a product to sell, doing little to no research, do not make a business plan, and then they are surprised as to why their business failed. The truth is, not every product is a winner. Something you think up may not work in today's time and may have worked 5 years ago perfectly, seamlessly. This is where the research will come in handy. Before even thinking of making a business plan for your potential idea, research it. Is there a demand for it? If so, where? Who makes up the target market? You may not love the answers to these questions, but they are necessary. On the other hand, everything could be looking up for you, and working in your favor. Now, write a perfect plan. From start to finish, write every detail down, while thinking about the potential consequences of each decision. If you think the plan could be better, make it better. Make a couple of drafts, and choose which one is best for your career to become something huge.
3. Not Trusting Others
If you are going to run a business, you need to know how to delegate tasks. You cannot possibly do everything yourself. It is just not possible. This is why it is important you have a strong team behind you. Delegating tasks to your team should be something done with ease. You should not be worried every time you tell your team to do the easiest of tasks. Trust is something that should be fluent in your business, day to day, week to week. It should always be there, as well as open communication. Let your employees know they can talk to you, whatever the problem may be. Your door is always open. This will create a great foundation for the relationships in your business, making your business even stronger than it was before. Everyone in your business should trust one another, just as they can trust you and you can trust them. This is a trait that will mean great things for your business.
4. Not Handling Issues Attentively
No matter what business you run and what type of boss you are, you are going to run into some sour customers. There are countless personalities in the world, meaning countless patience levels. If you or your staff is handling conflict poorly, it will reflect upon your business, setting a bad reputation. This could, without a doubt, result in the crumbling of your business before it could really even take off. As the head boss, it is your responsibility to learn how to properly deal with customers, as well as every other person involved in the building of your business. You should find a productive way to address any issue at hand and practice it. If you have employees who seem to have an issue with a certain type of customer, try to train them to be attentive. If they cannot get on board, that may not be an employee you want in your business after all. No matter the situation, you should try your absolute hardest in being an excellent problem solver. This will help you keep customers, and in the same retrospect, with your reputation growing positively, gain new customers as well.