A common scenario for new small business owners is the following;
Step 1 – Idea
The future business owner has an idea for a business, a great idea indeed. In their mind, this idea is so good that they cannot lose it.
Step 2: planning
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 consultations with the various departments and the momentum builds. This idea is so great 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 shouldn’t they? This idea cannot be lost. How do you 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 arrive.
Step 4 – Results
Eventually, your exit costs are not being met. Sales are not approaching expected level and another small business closes its doors in the 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 the other small business failures.
Step 5 – Reality
Many small business owners get so excited about starting their new business that they overlook the importance of taking the right startup steps. Your research consists of a few hours of searching the Internet and perhaps reading a few books. They are passionate about your product or service and often mistakenly believe that everyone else will feel the same way.
Companies that survive These are usually those who have followed proven business startup steps. Just because a company fails in its early years doesn’t mean it was a bad idea. Usually it 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 business success.
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