Tips to prevent poor business startup

 Why do some businesses fail ? what are the reasons why most small businesses fail? Many new entrepreneurs burn through their start up capital before their cash flow is positive. This often happens because of misconceptions about how business operates. here are tips to prevent poor business start up in the most challenging economies of the world, it is the survival of the fittest.


1. Failing to track your finances: Look at businesses that fail and you’ll find that many of them took on too much debt. Learn to pay strict attention to your finances, and keep careful records of all money coming in and going out.

2. Lack of reserve capital:  Still on capital, be prepared for unexpected increases in the costs of things like utilities, materials, and labor. Make sure you keep enough reserve cash to carry you through tough times and seasonal slowdowns.

3. Poor choice of location: Don’t let a cheap lease tempt you into choosing the wrong location. Consider competition (how many similar businesses are located nearby?) and accessibility (is the area well served by freeways, public transportation, and foot traffic?).

4. Poor execution: Poor customer service and overall employee incompetence will quickly sink your business. Make sure your employees place a premium on customer service.

5. An inadequate business plan: A well thought-out business plan forces you to think about the future and the challenges you’ll face. It also forces you to consider your financial needs, your marketing and management plans, your competition, and your overall strategy.

6. Failing to change with the times:  Change is constant, the ability to recognize opportunities and be flexible enough to adapt is crucial to surviving and thriving.

7. Ineffective marketing: Know the key marketing mix, customers can’t do business with you if they don’t know you’re there. It doesn’t cost a lot to advertise and promote your business through online marketing, social media, email, local search, and more.

8. Underestimating the competition: Customer loyalty doesn’t just happen — you have to earn it. Watch your competition and stay one step ahead of them.

There are still other tips to help new businesses to grow as this does not comprehensively cover all you need to know but has most facts that can easily be put into use.
Read more: http://todaybase.com/proven-reasons-why-small-businesses-fail/