Since there is a possibility that ¾ of all businesses will go bankrupt in the first five years of opening, it can be easy to say that entrepreneurs could decide to create 15 businesses at once so as to be on a safe side of having one or two businesses survive at the end of the day but impressive enough, the finance is always the barrier to having such a good business life, as well as the expertise needed to grow a business is not the same needed to grow more than one as a startup, there is a possibility that all new businesses could crash at once.
How do we manage these business risk?
The important thing with spending too much money on a business is that finance does not give a business a higher chance of not going bankrupt. Startup capital and business survival does not go hand in hand, it doesn’t mean that the money pumped into a business will make it survive so the best way to start at a less risky way into any business is to start small. Starting small is one way to scale business to large success compared to starting big and losing it all at once.
When doing business, do not just start putting in all resources into it, just do it according to necessity. Do not just spend all your time on a business because it looks like it is selling. In business, you must look at every aspect of the business and work with the important aspect and where customers are looking into, rather than just spending all the time on unnecessary things.
Also, when going into business, you need to check out a few things like the product, the sales, the market and you. It is either there is a right product for the wrong market, the wrong product for the right market, the right market and product but poor marketing. The success of this business in terms of sales is dependent on this.
Do not put all your eggs in one basket, you need to do something in business, and it is call calculated risk. You cannot invest all into something that might not succeed, it is good to have a backup rather than putting all and losing all.
That is a salient point raised. We must always be aware of the right market for our product to make our sales right.
Great post.
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Thanks for reading.
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I believe there is a need to well check a business before just rushing into it
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Very important, this will help us avoid mistakes.
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Do you have any statistics or perspectives on other correlation between preparation and startup failure?
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good market research it is vital to pose and maintain a business on the right track. Good post, solid read
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Appropriate research will always make business more easy to run.
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