With the success stories of the entrepreneurs shooting out every day, there are a new genre of people who would not like to remain tied up doing the normal jobs at their employers and spend their lives thinking of ways to increase their income. There are a lot of them who see themselves in the list of the millionaires and the billionaires and are ready to take the plunge into establishing their own firm. However, all this excitement and the euphoria initially boils down to the funding needs which one has to look for once they get on the planning stage.
Success of any business venture lies in the sound planning, assessment of the market, competitors analysis and overall timely arrangement of funds to meet the initial business requirements. One can come across several news where they can hear of several companies closing down their shutters in the early years of their beginning. In fact most of the companies collapse in the first 1-2 years of their beginning only.
One would often wonder as to what went wrong with these companies that they had to close their operations. Research and analysis will show that almost 99% of the entrepreneurs were those who had little or no business exposure and once they open their business they had little to knowledge to cope with the markets. This is not really a good situation. One should therefore try and learn from the experiences of the others and try not repeating what were presumably their misses.
Ways to Succeed in the Business
One of the studies reveals that almost 80% of the businesses which were opened by the people who had prior business experience or those who had partnered with someone who had good business experience have seen the light of the day, been successful and rise to new highs. So what is the reason for the same? This is mainly because the business men understand the way they have to deal with the vendors. They understand when they have to raise capital, when to take orders, how to do book building, the way to maintain inventory and the supplies. These are really critical issues when you are dealing with the business. Any of the ties missing and you will find your business suffer.
Managerial incompetence is yet another factor which is majorly responsible for the American business failure. There have been leaders who do not have the slightest idea of what their job entails and how they are going to deal with the challenges which come along with them. A good team makes an organization and with bad management it is not only the team that is lost but the entire organization which suffers.
Apart from this there are yet other factors which often decide the success or the failure of a business. When the times are good, and if there is a poor management businesses are seen inflating their cost for no reason. This eats up into the leverage they might have gained due to better business performance. However, successful businessmen are seen reinvesting their profits into the business or saving the same for the bad times.