Do you know 20% of small businesses fail in their first year, 30% of in the second year and 50% after five years in the UK?
If these data seem unoriginal to you, then you are wrong. It is the harsh reality of start-ups and the worst part is that only one in ten new businesses can get success. If it is true, then you must want to know the reason behind it.
There is not a single reason behind the failure. There is a total of six phases that one entrepreneur has to pass, overlook any one of them can be the reason behind the collapsed business.
Now, let’s have a look at the six phases and understand them one by one.
6 Stages Every Budding Businessman Should Know
We have mentioned six ways, and some tips that you should follow before putting the leg into this business world.
Choose a legitimate plan not Just idea
The basic problem that most of the people face is “Choosing the Idea”. The truth is that there is thousands of idea around you; all you need observable skills. Once you find the idea, then see that is it a legitimate plan or not? If it sounds yes, and you can do it in practice, then go for it.
It takes time and no surprises that it takes more than a month or 6.
The new businessman has to face several types of problems. The second challenge is to make the company reachable. Getting customers to deliver products everything depends on the existence.
If someone knows your company, then they can easily contact you. But how will they know about your company if it is newly established? However, you have to perform both offline, and online methods to promote the product.
When you will able to fill the gap between customer, and company, then continuous operation becomes confront. It may happen that customer is purchasing the stuff but you are running out of stock because of less capital.
It is crucial to maintain cash-flow. And if you want to increase the production, then you take assistance with some external borrowing methods like investors. It can provide you with a helping hand to maintain the cash flow so that you do not have to shut down your firm.
Many times, both external and internal factors are responsible for the failure. An owner generally overlooks the internal factors that degrade the company fast. In internal, management, and cooperation plays a vital role.
Not only newly established but the existence companies should take care of their management. The communication should be strong.
Make profit at a predictable basis
Generating large profit should not be your goal, all you need to earn a small one. Many new-preneurs shut down their business because they are not getting the “LARGE” profit. But remember one thing that achieving small will prepare you for the big goals.
All you have to set a tiny goal and put all your efforts into it. Go slow, and triumph the race.
The second name of the start-up is losses. 50% of new entrepreneurs drop the plan because they won’t able to generate profit and run the saturate business. But getting success in this field is not an easy task; you have to wait for the perfect time. It may be 6 months or a year but if you left in middle, you will remain with nothing.
You have to ready for the small losses, and you should know the ways to arrange the funds. If the situation’s demand is not high, then cash loans may provide you with the helping hand. In this, you may get the funds to your door. The lender may provide additional benefits like these loans are available for unemployed people too.
The above way shows how easily you can manage the cost without shutting down your business. These are the six stages or phases that you should know. Follow them, and have patience while pursuing a career in this field. And give time to business, and you will surely get the best return of your life.
Description: There are a total of 6 stages that every budding businessman should know. To know about these levels, you can read this blog.