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    Entrepreneurship: Why Do More Than Half Fail?

    2010/3/6 11:36:00 31

    Entrepreneurship: Why Do More Than Half Fail?

    In general, more than half of entrepreneurial cases end up in failure.


    Many entrepreneurs will have this experience: after the company has started its formal operation, it can breathe a sigh of relief. How can it be that all kinds of problems are beginning to emerge, making them feel at a loss and finding that they are completely different from what they imagined before.

    In the process of growing up, there are various kinds of complications, just like children often get sick.


    Prevention is better than cure


    Since SMEs' bosses and employees must have many jobs, they do not have enough expertise or manpower to solve these problems, so the failure rate of SMEs will be higher than that of large enterprises.


    In fact, if SME owners can effectively prevent common problems of enterprises, or early find problems and make proper treatment, they can greatly reduce the failure rate, that is, success.


    Three common corporate diseases


    Enterprises usually suffer from "disease", which can be divided into three categories: financing, customer source and product.


    Financing - the financing problems faced by the enterprises concerned, such as the fact that the Hongkong government has provided loans for SMEs, but the operator may not know the existence of the plan, bother to apply for trouble or give up because they do not know how to write a business plan.


    Tourist source if enterprises have insufficient source of tourists, their operators should not be immersed in the industry for a long time.

    The advantage of "unfamiliar not doing" is that the entrepreneur himself has established a network in the industry, and will be more secure in the source of tourists.


    Products with the changing times, the products of enterprises should have a specific position in the market. It is difficult to succeed only by imitation.


    In order to prevent enterprises from getting sick, entrepreneurs should pay attention to several important factors:


    Risk assessment: SMEs should conduct a detailed market survey before they start a business, assess the market position of the company or product, target customers and income and expenditure expected for the first year.

    Enterprises should reserve funds for at least one year.


    Personal network: if an entrepreneur wants to enter a new industry, he should first make friends with the industry, and then open up after the establishment of the interpersonal network.

    Besides, you may as well expand your circle as you work. Maybe these new acquaintances are your future customers.


    Know how to behave: no matter how competent you are as a boss, you can't do all the work by yourself.

    Giving them space in different professional fields will enable everyone to give full play to their strengths so that the company can get maximum benefits.


    Professional knowledge: entrepreneurs have the best knowledge of the chosen industry, and if they have a good interpersonal network, they can reduce the risk of early business.

    If entrepreneurs do not have any professional knowledge, they are advised to invest in franchisees, because their fixed business will make entrepreneurs easier to get started.


    Personality: an ideal entrepreneur, his character should be adventurous, not afraid of failure, and regard problems as the driving force of his work.

    The boss must be a successful leader (Leader) to lead the staff to give full play to their strengths and motivate them to do their best.

    If you ask yourself for a lack of leadership, you can choose to be a SOHO/Freelancer or a pyramid dealer, which is also a form of entrepreneurship.


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