A bad start: what hinders business grow and make a profit?



   

A bad start: what hinders business grow and make a profit?

Starting a business, an entrepreneur, seemingly contemplating everything to the smallest detail. Still a bad start - are not uncommon. Even for large investments ambitious projects may fail at the initial stage. And the cause is not at all commonplace ideas - from the original success depends only 1%. The fact that the business did not go often to blame for those moments, which rarely pay attention.

Why do I have left a bad start? Formula for success

Curiously, the formula for success for a long time came up, and practice it repeatedly proved. According to her success is starting to make the sum of the three components - the originality of the idea, the correct choice of the target audience and market capacity and the availability of an effective team. At the same time the idea of ​​accounts for only 1% on the correct definition of a market capacity and the target audience - 70% Staff - 29%.

The financial decline

It becomes clear that the most wonderful idea is viable if it does not turn to the audience and if you implement it will be people who have neither the competence nor the enthusiasm.
There are a number of errors for which no one pays attention. But that become fatal.

Attitude to work

You can not treat a startup as a part-by-direction. If work on the project at the beginning is based on a short working day, or free graphics, especially on the part of the founders, it will lead to the fact that "it will not work."

Work on the project must be dealt with seriously and react to any changes quickly. It is difficult to achieve when working part-time and freelance.

The convenient location of the office or shop - the important thing. Remote status of potential consumers in the 6% accurate results in the collapse of the project. In some areas, it causes the collapse of 90%.

Today it is difficult to seriously believe that it is possible to find a niche in which there will be no competition. To do this, we need to invent a completely new kind of industry, which is extremely rare. It is important for the successful start of another - to find a niche where competition is not so acute.

Competition

Work in the segment, where a large number of successful companies to 10% leads to the fact that the project will be ruined. But if you find that segment, where competition is weak, we can develop.

Distribution Finance

Do not spray resources. Initially, all efforts should be directed to the main product, the main proposal. He plays the role to become the cornerstone on which to build a business.
Investor search - also an important point. However, all the nuances, including the distribution of profits, it is necessary to make arrangements in advance.

Wrong contacts can easily give rise to a bad start

It is important for novice businessman to realize that communication much decide. Therefore it is necessary to analyze your circle of acquaintances, and determine who can be helpful. Do not hesitate to contact a friend for advice and assistance in the search for new connections and outputs. Practice shows that if you ignore this, then 16% of start-ups will fail.

Incorrect pricing policy leads to project failure. In this case, it is important to stay on the edge - to offer prices lower than the market to attract customers and entice them from their competitors, but not so low as to result in left without income. Excessive dumping destroyed startups even large companies.
A bad start: the subjective quality

Sometimes projects are dying due to the fact that their founders initially did not believe in its success, and droops at first mistakes and failures. Lack of motivation in 19% of cases, guarantees failure.

Subjective quality

Errors are inevitable during operation. It is important not to lose faith in yourself at the same time, and to analyze the mistakes and try to correct them. Persist in your mistakes, and inflexibility of thinking leads to a loss of market share. Therefore, it is necessary to regularly carry out analysis of the project.

Proper marketing

The most important part of any success in our time - the right marketing. This product should be released to the market on time. Release unfinished product will lead to loss of interest in him, and no longer its completion it will not save. Release later leads to the loss of resources.
The ability to apply themselves, subtly advertise extremely important. Therefore it is necessary to invest in promoting their company. At the same time pay attention to the unusual ways. In some cases, they are less expensive than advertising on TV and in the media. It is important here that the advertising was aimed at precisely the target audience for whom the goods or services.

The target audience

We must clearly understand to whom designed a product or service, and address them this particular audience. And in this case it is impossible to ignore their comments, interests and opinions.

The target audience

You can offer the ideal product at the most attractive prices, consider the wonderful bonus schemes and fail because the staff take their responsibilities formally negligent. Bad staff negates all great ideas. As the air need motivation employees.

In the third case in the closure of small businesses and shops had been guilty of it unprofessional staff. When recruitment is not necessary to engage in developing business friends and relatives. This will lead to the fact that at the initial stage will begin to appear in the work of the neglect.

It does not matter if it's not organized to produce results and the start-up failed. It is necessary to analyze the causes of failure and try to learn from their mistakes. In this case, you can safely count on the fact that the second attempt will be more successful. And start turn into a successful commercial project.