A common scenario for new small business owners is the following;
Step 1 – Idea
The business owner has an idea for a business, a great idea indeed. In his mind, this idea is so good that it is impossible for them to lose it.
Step 2 – Schedule
They think about their idea for a few weeks or maybe a couple of months. Some have even been thinking about it for years. They do some consulting with the various departments and the momentum builds. This idea is so cool that it will be the answer to all your prayers. Freedom, financial security, the ability to ‘fire’ the boss. They will have built a successful business doing what they love. They will be the toast of your family and the envy of your friends.
Step 3 – Establishment
So they run with their idea. Why wouldn’t they? This idea can not lose. How do they know this? Because they have done their ‘research’. So they enthusiastically set up their business. Then for the next six to twelve months they wait and wait and wait. For customers who never come.
Step 4 – Results
Eventually, your outgoing costs are not covered. Sales are nowhere near the level anticipated and another small business closes its doors in its first year.
But how can this be? All the research indicated that this business was going to be successful. It wasn’t going to be like those other small business flops.
Step 5 – Reality
Many small business owners are so excited about starting their new business that they overlook the importance of following the correct startup steps. Your research consists of a few hours of searching the internet and maybe reading a few books. They are passionate about your product or service and often mistakenly believe that everyone else will feel the same way.
businesses that survive They are generally those who have followed proven steps to start a business. Just because a business failed in its early years doesn’t mean it was a bad idea. It usually means that the owner did not foresee any problems.
Proper preparation highlights potential obstacles and allows you to plan for them. Planning will always increase your chances of trading success.
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