Whether you are a business owner, or someone willing to create a long-term successful-profitable-sustainable company, you can find ways to do it and to make it crisis-proof. However not knowing what to avoid can lead to a total failure or at least “help “ you lose money. If it is your goal, just follow the 10 steps listed below, and the results are pretty much guaranteed…
Just kidding!
We both know that if you are reading this, you are already success-focused.
If you want to have a home for years, don’t build it on sand.
When you know what to avoid, while creating a company, you are far closer to building a business that will stay and profit, retain customers… and help you create the lifestyle you have always dreamed of.
The truth:
How have I created this list? I am not a million dollar business owner yet. I would not teach or mentor you…without my own successful experience. However, among my close or distant friends are people who have far surpassed that financial line. Their companies are global, and growing. Their experience has been gathered over the decades of entrepreneurship and corporation-related work. I am sharing the secrets of the multimillion dollar business minds like James Schramko, an Australian businessman.
So pay attention.
O.K., here they are.
Ten reasons of business failures:
- Not paying attention to the tax issues. Creating a business without this element is like having a dinner served on a table with three legs, when the fourth is missing. It can cause your company to fail fast and take you with it.
- Not taking care about the payments properly. Have the proof on paper, make sure that you pay on time and the right amount. (*read the example below this list)
- Being a one-man show. Person trying to do everything by him or herself. When you have no money but lots of time, it may be an option, but when the income starts coming in, outsource the tasks you are not an expert at. If you keep doing everything, you are also sweating the details, while the big thinking is left behind.
- Acting like a loser. Not completing the tasks and starting new ones. Working on to many issues at one time. “Too many” means more than one.
- Having no system or strategy. Doing the same things again and again. This may be well visualized as trying to invent the wheel.
- Not setting up your brand name that people will remember. Not choosing a name that corresponds with what the business is about.
- Creating a business that can be emulated easily. Can your business be copied?
- Borrowing money or taking in funding. There are quite many people out there ready to invest in a great idea… yet when you let them in, you also welcome their control. They can shut your company down at any moment, or steer it into a different direction that you would like to, change it completely or even remove you from the company. (Think about what happened to Steve Jobs, or Gurbaksh Chahal)
- Not understanding the assets and liabilities.
- Not concentrating on marketing your product or ideas. “World is full of great products that nobody has ever heard of”… says Keith Cunningham.
and the critical one
- Lack of sense of direction. Not knowing the purpose of your business, your WHY.
Good luck
Till the next time
Martyna
Great 11 points. I like 3 and 6 in particular: branding and outsourcing. Especially when so many people buy keyword reach domain names, it is so vital to come up with something – a brandable name, which will be easy to remember, and recognizable.
Outsourcing takes business to a next level.
James is an incredible businessman, definitely someone to learn from.
yes, if there is no brand, any type of flood will take the company under water
thanks you for your comment Justi
Excellent points you have figured out. These are so much important points that every business should look after it. Because no body knows what will happen when. Thanks a lot for sharing this.
Having no system or strategy will inevitably lead to failure but so will focussing too much on strategy. Over planning can lead to nothing really ever happening. It’s important to get a balance here.
hey Yan
so true what you have said. A clear goal helps to find the balance your mentioned
all the best
Those are great ways to avoid mistakes in a company. As I figure it out, same goes with justyna, 3 and 6 is the most important thing to remember. Branding is needed for people to recognize you, under what business are you in and the name of the product in particular. Being a one-man-company is definitely a bad habit, there is a chance that you will succeed (well of course, you know everything in the business) but most of the time, those businessman who thinks they know all, fails. Have someone to assist you with the things you lack.
hey Phil
This is a good point: “Have someone to assist you with the things you lack.”! Albert Einstein needed other people to cater to his normal needs, like food, a safe place to live. it was done by his wife. If he wanted to do everything, we would have never enjoyed the results of his genius.
branding- so important, I am going to your website now to see how you do it.
I see it is a professional law firm, my sister Justyna used to work as a judge. I am sending her the link to your site, so she can have a look. Now she is an entrepreneur
thanks for your comment
Martyna
I’ve seen a lot of those that fit the description in number 3. Although it sounds cool that you’re running things in lone wolf mode, the chances that it may fail are higher since you’re the only one who’s doing the dirty work. People say that two heads are better than one. That’s why it’s better if you’re going to work with a team who can really help you out in some aspects of your business. Besides, a team is made to cover up each member’s weaknesses by using their strengths to finish the job.
Hey Martyna,
Thanks for taking time to reply.
I must say, I never thought she was. Thanks for sending her my link, I really appreciate it.
What made her turn to an entrepreneur? If it’s okay to ask.
Uh huh..sorry I am a little bit distracted with that shiny pouting lips image in your post=)
Phil, how are you doing.
do you know my sister?
it is ok to ask,
she was a good judge, with a chance of becoming the head of the whole court at the age of 30 or 31 ( I don’t remember). but… Justyna craves freedom, and the ability to travel and enjoy all the possibilities our world gives us.
Entrepreneurs are similar to judges. Both solve people’s problems, and look after their safety and well-being. But there are differences that define whether one becomes a judge or an entrepreneur…
thanks for your comment, best wishes
@ Gerald Martin
“That’s why it’s better if you’re going to work with a team who can really help you out in some aspects of your business. Besides, a team is made to cover up each member’s weaknesses by using their strengths to finish the job.”
There is a great book about entrepreneurs, titled ” The Innovation secrets of Steve Jobs”. I have an impression that you would simply love it!
in my personal opinion the worst mistake is not having passion or a clear direction what your business’ goals are. even if the company’s main goal is to sell merchandise, the goal on how to sell more item should be clearly stated and developed,
it’s important to have a strong marketing strategy and implement it in as best as you can.