Make sure these potential business failures don’t happen to you!
I have talked to many Veteran Entrepreneurs and Business Owners in the almost two years that I have been running Command Your Business. Many have succeeded, but many have failed. Here are 8 reasons your business could fail.
Many business owners simply don’t start with enough cash. They underestimate how long it will take their business to become profitable. Sales don’t come in as fast as cash goes out. You can’t pay suppliers or employees. Time to call 911, Crash and Burn.
2. You Don’t Know Your Customers
You have a brilliant idea. There and thousands of potential customers. You don’t talk to any of them. You don’ t understand their needs. You spend months and piles of cash developing your product. No one wants it. Time to call 911, Crash and Burn.
3. You Are Not Pricing Correctly
You fail to research your market and don’t know how to price your product / service. If you price too low, you generate plenty of sales but don’t make enough profit to keep your business open. If you price too high, you make a healthy profit margin with each sale, but don’t make enough sales to stay in business. Time to call 911, Crash and Burn.
4. You Try To Focus On Too Many Things
You have a great idea. In fact, you have hundreds of great ideas. You try and implement every single one of them. You lose focus on your core product and customers. Customers stop buying, sales decline, and you can’t make payroll. Time to call 911, Crash and Burn.
5. You Try To Grow Too Quickly
You start your business and have success in a smaller market. You begin to make money. You decide to spend a significant amount of money on advertising or take on a very large customer. Your business processes are not able to handle the increased demand. You are unable to deliver the product to your large customer in a timely manner. You can’t keep track of your finances. Expenses are out of control due to your sales at all cost strategy. Customers stop buying because you can’t deliver your product or service on time. Time to call 911, Crash and Burn.
6. You Think Success In The Military Equals Success In Business
You were successful in the Military. You served in a combat zone. You were regularly promoted before your peers. It must mean you will be successful in your business right? Not true if you forget about the countless training exercises, courses, counseling sessions, and peers that helped you succeed in the military. You must spend the time to learn about finance, marketing, sales, legal and all of the other business processes. If you don’t prepare for business the same way you prepared in the military, your business will Crash and Burn.
7. You Give Up Too Quickly
You hit a few roadblocks. Your first idea does not take off. Sales start slowly. You realize that your business is not going to be an overnight success. You tell yourself you are not cut out for business ownership and quickly shut down your business. Crash and Burn.
8. You Don’t Get Help
You think you can do it alone. You believe that you can learn everything you need by reading a few books, listening to some podcasts, and watching a few videos. When you served, you were always surrounded by someone who had “been there, done that”. You could seek advice. You could ask questions. Your could learn from the mistakes of others. The same is true in business. There are many organizations that want to help veterans become business owners and entrepreneurs. There are thousands of potential mentors who would be willing to help if you asked. If you don’t get help, your business will Crash and Burn.
Do any of these sound familiar to you?