A fair amount of brainstorming and planning we are coming to business startup ideas. That can be a time when your mind frequently plays tricks on you. Fear and doubt creep. You can make plenty of excuses. There are more than enough to choose from. Including timing of your launch. In Maldives we can start company, partnership and entrepreneurship business. Its also difficult to chose which type of business will be most suitable to startup. The easiest to startup was entrepreneurship business. This report will highlight the most common issue occur during entrepreneurship business startup.
1. Poor Business Planning
Starting a business just because you have some cash, boredom and retire from the job wont make you a successful entrepreneur. The today market was a very competitive customer desire was very high. Before startup business planning have to be completed to run business smoothly otherwise its has a more chances of failure. Having good business plan will also help entrepreneur to rise finance more easily.
2. Lack of Finance
The rising finance is most difficult task for every entrepreneur. The entrepreneur run out of the business due to cash flow management. Even borrowed cash was not managed the business will face a debt crises. The income increases expenditures also will increase. The startup business have to spend more on investment. If the finance was not managed properly business will run out of cash.
3. Poor Marketing Strategies
The good marketing strategies is vital to achieve business target. Running business without clear target may not be able retain there customers. The entrepreneur must have effective marketing strategies to promote business products to increase sale and profit.
4. Fear of Competition
The business cannot be success without taking any risk. The competitors will have different techniques to get competitive advantages. The entrepreneur have to be ready face any challenges from the market, it may be due to a change in technological advancement. The innovative ideas to be implemented be competitive in the market. The business must have good cash flow to compete in the market.
Some of the peoples still don't want delegate the work to others resulting entrepreneur will be busy at day to day running of the business. They do not get time use his intelligent or talent and stuck in owning the small business. By delegation the entrepreneur get more time to think about business ideas and innovation
6. Lack of a Dedicated Team
The entrepreneur himself cannot be successful without a good team. The team members will have different knowledge and talents that can be applied to business development. The every one in the team must give his or her full commitment otherwise slowly it create problems in the business. With a dedicate team entrepreneur can achieve great result.
Top 10 causes of small business failure:
The most of the business was failed as they have entered a wrong market. This is because business was startup without a proper planning. The business plan will helps to analyse the market and business strength, weakness, treats and opportunities to enter the market. The ran out of cash was the second reason why business fails. The cash flow was not managed effective and do not have cash to operate the day to day business activities. The business to be successful the must have right team. Not having the right team was a third reason most of the business was failed during the the startup. The entrepreneur business can be successful startup with good business plan, effective management of cash and having dynamic team to work in the business. The business also must have good marketing strategies to be compete in the market.