Probably, 90% of people want to start their own business. But all of them do that. There are multiple reasons for which they get the courage to start their business and the topmost reason is a failure.
Yes, it’s a fact that up to 70% of the small businesses fail in the first decade of their life, but does that mean not to even go for it?
No, it does never mean not to go for it, but the thing is to reduce the risk of failure. As the best selling author Robert Kiyosaki has said, always take calculated risks.
Reducing the risk and taking calculated risks simply means to enhance your grip on your business. You will notice why businesses fail, and what makes them successful.
So here we will discuss what makes people successful entrepreneurs. And how you can also do that.
Always choose the profitable niche
If you ask any entrepreneur or any kind of businessman, what’s the main purpose of your business? The answer is more growth and more money.
Look, there is nothing wrong with it. We need money to live a wonderful life and help others live a peaceful life.
For example, if your business doesn’t make money, you will never make a team to run your business, but you will even try to fire all of them. Isn’t it so?
It means, if you’re generating profits, you’re helping dozens or hundreds of people to earn their livelihood. That’s a blessing.
Although, it should never be tricky to increase your wealth.
If you notice that someone else around you is generating more profits and you’re not then there is nothing wrong with it.
It’s possible that you didn’t choose the profitable niche. And he is running one of the most profitable small businesses, there must be a difference in incomes
Always start business with a plan
When you want to start a business, you don’t want to waste your time on making business plans and presenting them to your team or fellows. You believe that you already know everything and you shouldn’t repeat it once again. Isn’t it so?
My cousin recently started a small business, and I told him to study his business and make a plan for it. But he didn’t. He used to believe that he had a plan in his mind.
Later on, he couldn’t even implement his ideas due to the lack of a plan. The reason is that when you don’t write things down on a paper, no matter how great they are, you will get confused on many matters.
And if you have a plan then you keep the distractions away because you keep your eyes on the plan and keep it moving forward.
Well, that’s the only benefit of having a business plan.
Making a business plan makes you feel more confident and helps you improve your ideas. For example, you created a business plan according to your research and presented it to your fellows. You might have made some unusual or unrealistic assumptions that your fellows will notice and make you correct.
That’s why I not only recommend writing your plan down but also present it to your fellows. So that it could get improved.
In business, you try to write down each and everything that belongs to your business.
Always be flexible in your approach:
It’s possible that you had created an amazing plan a year ago. But sooner after 6 months, business trends changed due to pandemic disease, Covid-19. What shall you do?
Should you be sticky to your plans and follow them or you should work on improvements?
If you believe that you should go with trends otherwise you can’t survive, that’s what I wanted you to understand.
No matter if your business suffered COVID or any other pandemic, you should keep reforming your plans. Because as the world is changing, your business approach should also change.
It doesn’t mean you should totally change your plan or keep a B-Plan with your A-Plan. According to Steven D. Strauss – A business consultant, if you have a B-Plan for your business it won’t let you succeed. But the thing is to keep your main motive in mind and keep reforming for the growth.
Always reduce risks
I learned this habit from Robert Kiyosaki, owner of Richard series. He used to claim that businesses fail when you don’t take calculated risks.
In simple words, whatever decision you want to make for your business, always look at all the good and bad aspects.
Let’s take a simple example of starting a T-Shirts business.
You see that there is a huge profit in textile related and T-Shirts are in demand in your area. You were doing research from where you can buy and you got a chance to buy T-Shirts at quite cheap prices. You thought you can sell the shirts at double or triple rates easily.
What should you do?
One perspective is that you’re confident in your marketing skills and you will easily sell them. Actually, that’s not the right way.
The better approach is to reduce your risks and look at all the negative perspectives as well. You should try to find answers to the following questions to reduce risk.
- Why are T-Shirts cheap in prices?
- Who else is selling those shirts?
- What difficulties is he facing?
- Why won’t you suffer those difficulties?
As you will get the answers, you will be better able to make a decision.
In this way, you will reduce the risk of failure and feel more confident about your business. If there are some troubles that you’re gonna face in the near future, you already know all of them. You will be well prepared to face those troubles, and hence the chances of failure will also get reduced.
We have discussed why businesses fail and how someone can make a business succeed. We also noticed how you can reduce the risk of failure.
Let us know what kind of difficulties you are suffering from so that we could help in those perspectives in the near future.
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