Wednesday, November 10, 2010

Why New Businesses Fail: (Part 2)

Last week’s blog mentioned 3 reasons why new businesses fail: under capitalization, lack of knowledge about the industry and improper or incomplete financial controls. Here are 3 more:

1) Lack of sales expertise. Every business needs to sell its products or services if it plans on keeping its doors open. If you don’t have people on board who know how to successfully pitch the product, you’re doomed. By the way, this includes you because you need to be the sales leader.

2) Improper location. If you’re going to be in retail, you’d better be darned sure there is sufficient traffic to buy your products. Proper location can be just as important if transportation to and from your business is a necessary ingredient to success.

3) Lack of basic managerial skills. Unless you’re going to be a one man shop, you’re going to have people working for you. This means you and others will have to manage them. If you don’t know the first thing about how to properly handle subordinates, you’re going to run into major trouble. People won’t work for long in a company that has poor management. And excessive turnover will kill any business.

In starting your business remember the following 7 P’s adage. Proper prior preparation prevents piss poor performance.

Next week’s blog: 3 Techniques that helps the new sales rep hit the ground running:

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