14 September 2018

8 Must To Do Things to Avoid Failure in Startup Business

Entrepreneur bug is prevailing in current market conditions. Many people are starting or has started the business to be a successful entrepreneur.  Many are inline to start the business. First, we need to understand, why people are running to be a successful entrepreneur as against the cozy job roles. There are many reasons for that. Some of them are listed below.  

  • People find themselves tightly hugged within corporate showing off culture and wants to start something new.
  • Not convinced with the nine to five coupled lifestyle.
  • Want to convert passionate thoughts in reality. 
  • Their ideas are rejected citing unconventional or unrealistic. 
  • They want to create an earning for others as well by generating jobs. 
  • They are inclined to do things differently. 
  • Their thoughts are revolutionary and have a go-getter attitude. 
Gray Dream Freestanding Letters

If you are also aligned to above lines, then you also have a fire in the belly to do something different. Definitely, you are having a clinch of becoming an entrepreneur. But hold!. Before starting anything, first, do these seven things in advance. These will help you to fails in your business. These mantras are not related to any special business areas and are applied to all businesses. 

#1 Make a Detailed Business Plan

The first and foremost thing you must do is to make a business plan. The details business plan will help you to think into the spectrum of opportunities and expected pitfalls. You will also be able to create a risk management plan accordingly. Some of the contents of details business plan should be. 
    Person Writing on White Book
  • Introduction
    • Business Concept
    • Current Market condition
    • Key success factors
    • Financial situation
  • Vision and Mission
    • Vision and Mission Statement (VMCC)
    • Milestones defined
  • Market Research
    • The overall market situation
    • Expected changes in coming times.
    • Targeted customers and market areas
    • Customers need identification
    • Customer decision-influencing factors analysis.
  • Go-To-Market Strategy
    • Key competitors
    • Competitors strengths and weaknesses. 
    • Product placement strategy
    • Execution strategy
  • Product and Services Offerings
    • Person Holding Black Pen and Book Near Pink Ceramic Mug
    • Product /Service Offerings
    • Positioning Strategy in Competition
    • Future prospect.
  • Marketing and Sales
    • Marketing strategy
    • Sales strategy
    • Advertisement strategy with budget
    • Publicity strategy
  • Plan Execution
    • Keyt resources requirement
    • Organizational structure
    • Human Resource plan
    • Product/Service Delivery Mechanism
    • Facilities needed.
  • Financial Plan
    • White Paper With People Diagram Print
    • Assumptions and Dependencies
    • Profit and loss forecast
    • Cash flow projection
    • Operating funds plan
    • Balance sheet projection
    • Financial support strategy
    • Funds input mechanism
  • Exit Plan
    • Plan for Exit
    • How to discontinue business
    • Key factors to Trigger exit plan
#2 Prioritize Operating Fund Arrangements
    Finance Illustration Paper On Table
  • The major mistake was done by entrepreneurs. They calculate capital money requirement. But do not check operating expenditure requirements. That causes the failure of business due to a shortage of money input during operation. 
  • Make operating cost requirement as part of your plan and must be given detailed thoughts. 
#3 Hire an Expert
    accuracy, action, active
  • It is the money saving to do many things by your self.
  • Beware! save in time stitch nine. Take help of experts, if needed at any point.
  • If your product and services are needed experts, make the detailed analysis of this point a part of your business plan. 
#4 Analyse Competition Power
    battle, black, blur
  • Despite having the best product or services, if your competition is very strong in all aspects, it will not allow you to grow by any means. Analyse the power of competition and plan to fight against the power driven expected gimmicks beforehand.
  • Have a detailed plan to fight against such expected competition fight.
#5 Detailed 5W2H analysis 
Image result for 5w2h format
  • You need to make a separate plan with this analysis. You have to do 5W2H analysis in detail with all associated risks and mitigation plan. More you plan in advance more it will help in the real scenario.
    • What
    • Where
    • When
    • Why
    • Who
    • How
    • How Much
#6 Business Expansion Strategy Plan
  • Many businesses fail due to lacking a business expansion strategy.
  • Make business expansion strategy well in advance
  • It must include the trigger point for expansion with a detailed strategy including financials
#7 Free Advertisement Ideas Generation
    Four People Holding Mobile Phones
  • Modern time has huge opportunities for advertisements.
  • Plan strategies for advertisement which does not need or need very less money. 
  • Some of the free/less amount consuming plans could be
    • Social Media Marketing Strategy
    • Online Marketing Strategy
    • Using free available office tools with associated risks.
    • Using seminars or workshops
    • Planting kiosks in prime areas
    • Distributing goodies free of cost
    • Aggregating customers.
#8 Exit Plan
    Yellow Arrow Symbol
  • I would recommend this be part of your business plan and must be planned in advance. In the case of eventualities, people are not aware of what to do to close down the business. In such cases, they incur heavy losses. 
  • To avoid such situation, exit plan must be existing in advance with its trigger points defined correctly. 
If the above points are considered well in advance with in-depth analysis and thoughts, there is hardly a way that business will fail. However, unforeseen eventualities cannot be defined in advance. That should be part of risk acceptance and an exit plan. 

Happy Entrepreneurship. Stay Connected. 

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