Key
reasons why a business will fail
·
Poor distribution system
·
Lack of experience
· Industry
· Management
·
Lack of capital ($)
·
Lack of planning
Visit
How to Start a
Business for some great insights into how to succeed with a
start up business and learn how to overcome the causes of
business failure.
Typical problems of a
start up business
Lack of work
· No reputation
· Poor image
· Poor marketing
· Lack of selling skills
- Selling made difficult by lack of confidence and lack
of knowledge of capabilities, what is involved in job etc.
· Lack of networks or networks not working as expected
· Lack of clients for referrals, more work etc.
|
|
Prices too low
· Hourly rate too low
· Underestimate time involved
· Lack of courage in billing
· Write downs
· Under quoting
· No precedence
· Poor systems & policies (but don’t believe they are
needed)
· Staff structure (principal does everything and can’t
charge appropriate rate)
· Gross profit too low
Θ
Charge
Rate Calculator
Poor delegation
· Maybe no one to delegate to
· Take too long to employ someone
· Doesn’t spend enough time planning work
Θ
Task &
Delegation Planner
Lots happening (though not always effective)
· Place runs on adrenaline
· Emphasis is on action
· Candidates for stress
- on self
- on relationships
· Loss of enthusiasm if success doesn’t come quickly
enough
· Good at Developing bad habits |