I just met with a new client who has a new business, making cute jewelry. She has all the artistic skills you could want but she never took a business course in her life. This is very common with my start-up clients – they have the skills to make their product or provide their service but do not know much about how to run a business. It’s hard to succeed in business if you do not know how to run a business.
Starting a new business always involves risk. Are you offering the right product or service? Are you marketing your product or service to the right people? Is cash coming in faster than you have to pay your expenses?
Most entrepreneurs accept that there will be a learning curve to being successful. If they don’t accept that there is risk in their venture, they will not start their own business. And that is fine. Not everyone should be a business owner.
Even worse, what has worked for years may stop working for you. Every business owner has to analyze what is currently working for their business and what is not working. Then comes the tough job of figuring out why something is not working.
A great number of business failures come about from the same problems. Did you do enough market research to learn whether enough customers want or need your product or service and pay enough money for it to make you a good profit? Did you choose your business partners with an eye to having complimentary skills to yours? Did you have enough money in the company’s account to see you through the slow times?
I don’t believe that the vast number of entrepreneurs can understand what they did wrong by themselves. They need outside help to give them some perspective on what they did wrong.
So, if your business is not doing as well as you would like, call in your advisor team and brainstorm your problems to come up with different ways of doing things. If you can’t even point to what your problems are, let your mentors and mastermind groups ask you enough questions and look at your books and records so that you can find your weaknesses. It may be a painful process but losing your business because of your pride is even more painful.
Failure itself will not teach you how to be successful in business. You need to learn what to do differently to avoid failing in business.
Source by Robin Gronsky