Top Seven Deadly Reasons of Business Failures and How to Avoid?

A survey by CB Insights has compiled ranges of study on businesses that failed. The report found 20 top reasons, naming absence of market, lack of capital and a startup team which did not fit for the job in the top three.

Whilst the report listed 20 reasons, I decided to only focus on 7 most deadly reasons you need to pay more attention to and how to overcome it:

• You start your business for the wrong reasons
• Poor Management
• Insufficient Capital
• Location. Location. Location.
• Lack of Planning
• Over-expansion
• No Website
• Final Two Cent

6 Important Questions You Must Answer Before Becoming An Entrepreneur

Based on the statistics by Small Business Administration (SBA), about 50% businesses fail in the first year and 95% fail in five years, US alone. What’s even worse, the report has identified that many failed due to starting business for wrong reasons. Poor business planning and no website were primary contributors too.

It does look discouraging for new aspiring entrepreneurs. Identifying the problems are one thing, but how do you know whether you’re certain that entrepreneurship is the one for you. Here are the 6 important questions you must answer:

• Does My Product Solves Problem?
• Why Do I Want to Become An Entrepreneur?
• What Skills Should I Focus On Improving?
• Am I Capable of Facing Difficulties and Risks Failure?
• Do I Know When To Persevere Or Surrender?
• Sacrifice. Sacrifice. Sacrifice.
• Final Two Cent

5 Important Lessons I’ve Learned From Growing My Online Business.

Entrepreneurial experiences are filled with difficult challenges. Some feel the financial pressures, while others just could not cope with the stressful life of having to sacrifice everything.

My startup of Mirsky Mode was no different. It was filled with ups and downs. The important part here is what I’ve gained from those experiences. Here are top lessons I’ve learned:

• Help Comes From The Unexpected.
• Planning is in the Details
• PR Beats Marketing
• Set Impossible Objectives
• Resilience is Key
• Final Two Cents

Help Comes From The Unexpected

When I set out Mirsky Mode, I really felt I knew where my customers will mostly come from. I’ve done the marketing analysis, identified my target demographics and the best methods to reach my products to them.

I did not spend much on marketing and advertising (too expensive), and so relied heavily on my PR Strategies. So much information was shared within my family, their friends and my friends, their friends’ friends and forth. I expected much sales will come from them. Dead Wrong.

Six months into business, I learned the hard truth. While my family members were mostly onboard (not shocking) but NOT my friends. Not many of them were into the idea. Some felt the idea was too generic. Some even put my emails into spam box (yup). Some even gave me the hint that the business has no future. Some did give me the support and purchased the products but the number was just too low.