Advertising
Advertising

10 Reasons Small Businesses Fail

10 Reasons Small Businesses Fail

There are times businesses fail, and even when you feel you have done everything right, things go wrong. The odds of a business achieving success are low; that is why it is important to pay attention to every detail required to run a business. If you can stay clear of the mistakes of business owners discussed below, your business is far more likely to be around for a long time.

“There are no disasters in business that you can’t avoid if you see them coming and make the adjustments.” –Boune T. Pickens. Jr.

1. They lack focus

There should be a clear objective regarding the direction a business is going and where it should be within a proposed timeframe. Many fail to understand this concept and pursue several objectives at once. It is better to have a core vision and steer your employees in that direction.

Advertising

2. They make poor decisions

Businesses succeed because of smart decisions. It is important to avoid poor decisions if you want your business to last and make money. It is better to get as much information and review it meticulously than to make hasty judgements based on too little data. Perhaps you should try to draw up worst case scenarios and discuss them with your advisory team before taking any action.

3. They lack the ability to adapt to changes

Change is constant, and we live in a technological age where change happens every second. To survive as a business, you have to constantly adapt and improve your strengths to meet with the demands before you. You can’t be stagnant and expect success.

4. They maintain poor leadership

Every successful business needs the right leadership to continually challenge its people to step out of their comfort zones and seek answers. You can be kind and compassionate, but that won’t yield results if you do not challenge your people.

Advertising

5. They have fierce competition

Competition is a certainty in business. But sometimes, competition can be so fierce that you are forced to shut down your business. Competition shouldn’t create fear, but should challenge you to get better and stand out from the crowd.

6. They stay in the wrong location

Location is pivotal to how far a business can go. You cannot be located close to a fierce competitor and expect to succeed. When choosing a location, it is better to make sure it is going to work towards your advantage. Consider the road network, accessibility, proximity to your clients, population, and demographics.

7. They lack the required skills

For your business to succeed, you have to have the right employees who are skilled and can help execute the mission of the company. According to Warren Buffet, “Risk comes from not knowing what you are doing.” To be successful in your business, you need the right experience and knowledge to make the business sustainable.

Advertising

8. They delegate duties poorly

Money is always tight during the start-up stage. It is better to outsource or delegate duties to the right personnel. Rather than being a “do it all” kind of boss, you should focus on your strengths and delegate other duties to professionals that can execute them appropriately and maximize the output of your business.

9. They lack sufficient capital

There is a reason why business owners seek funding from investors and venture capitalists. Money and cash flow is the life blood of every business. No matter how great your business idea or product may be, without the capital and profitability of the business, you won’t be able to take your business to the next level and attain success.

10. They don’t have enough credit

Another reason businesses fail is because money for its services or products is not promptly payed by customers. You do not need bad debts when running a business. Cash flow is important to running a business; making sure your customers are loyal and consistent in paying you is advantageous to the long term success of your business.

Advertising

Featured photo credit: http://www.flickr.com via flickr.com

More by this author

Casey Imafidon

Specialized in motivation and personal growth, providing advice to make readers fulfilled and spurred on to achieve all that they desire in life.

8 Reasons Risk Takers Are More Likely To Be Successful 15 Signs Of Self-Absorbed People Master These 15 Skills for Success to Get Ahead in Your Career Follow This Simple Success Formula to Stop Feeling Stuck in Life 20 Signs You’re A Charming Person Though You Are Not Aware

Trending in Productivity

1 6 Effective Ways to Enhance Your Problem Solving Skills 2 How to Concentrate and Focus Better to Boost Productivity 3 15 Productive Things to Do When Bored (So Time Is Not Wasted) 4 10 Simple Strategies to Make Your Life Better Starting Today 5 30 Best Procrastination Quotes to Get You Back to Work

Read Next

Advertising
Advertising
Advertising

Last Updated on July 16, 2019

6 Effective Ways to Enhance Your Problem Solving Skills

6 Effective Ways to Enhance Your Problem Solving Skills

Have you ever thought of yourself as a problem solver? I’m guessing not. But in reality, we are constantly solving problems. And the better our problem solving skills are, the easier our lives are.

Problems arise in many shapes and forms. They can be mundane, everyday problems, or larger more complex problems:

What to have for dinner tonight?

Which route to take to work?

How to fix a project that’s running behind schedule?

How to change from an uninspiring job to a career you’re really passionate about?

Every day, you’ll be faced with at least one problem to solve. But it gets easier when you realize that problems are simply choices. There’s nothing ‘scary’ about them other than having to make a decision.

Advertising

No matter what job you’re in, where you live, who your partner is, how many friends you have, you will be judged on your ability to solve problems. Because problems equal hassles for everyone concerned. And people don’t like hassle. So the more problems you can solve, the less hassle all-round, the happier people are with you. Everyone wins.

Why Are Problem Solving Skills Important?

Problem is something hard to understand or accomplish or deal with. It can be a task, a situation, or even a person. Problem solving involves methods and skills to find the best solutions to problems.

Problem solving is important because we all have decisions to make, and questions to answer in our lives. Amazing people like Eleanor Roosevelt, Steve Jobs, Mahatma Gandhi and Martin Luther King Jr., are all great problems solvers. Good parents, teachers, doctors and waiters all have to be good at solving different sort of problems as well.

Problem solving skills are for our everyday lives.

How to Enhance Problem Solving Skills

Most people believe that you have to be very intelligent in order to be a good problem solver, but that’s not true.

You don’t have to be super smart to be a problem solver, you just need practice.

When you understand the different steps to solve a problem, you’ll be able to come up with great solutions.

Advertising

1. Focus on the Solution, Not the Problem

Neuroscientists have proven that your brain cannot find solutions if you focus on the problem.[1] This is because when you focus on the problem, you’re effectively feeding ‘negativity,’ which in turn activates negative emotions in the brain. These emotions block potential solutions.

I’m not saying you should ‘ignore the problem,’ instead, try to remain calm. It helps to first, acknowledge the problem; and then, move your focus to a solution-oriented mindset where you keep fixed on what the ‘answer’ could be, rather than lingering on ‘what went wrong’ and ‘who’s fault it is’.

2. Adapt 5 Whys to Clearly Define the Problem

5 Whys is a problem solving framework to help you get to the root of a problem.

By repeatedly asking the question “why” on a problem, you can dig into the root cause of a problem, and that’s how you can find the best solution to tackle the root problem once and for all. And it can go deeper than just asking why for five times.

For example:

If the problem is “always late to work”…

  • Why am I late to work?
    I always click the snooze button and just want to go on sleeping.
  • Why do I want to go on sleeping?
    I feel so tired in the morning.
  • Why do I feel tired in the morning?
    I slept late the night before, that’s why.
  • Why did I sleep late?
    I wasn’t sleepy after drinking coffee, and I just kept scrolling my Facebook feed and somehow I couldn’t stop.
  • Why did I drink coffee?
    Because I was too sleepy at work in the afternoon, not having enough sleep the night before.

So there you see, if you didn’t try to dig out the root of the problem, you may just set a few more alarms and have it beep every five minutes in the morning. But in fact, the problem you need to solve is to quit Facebook surfing endlessly at night so you’ll feel more energetic in the day time, and you won’t even need coffee.

Advertising

3. Simplify Things

As human beings, we have a tendency to make things more complicated than they need to be! Try simplifying your problem by generalizing it.

Remove all the details and go back to the basics. Try looking for a really easy, obvious solution – you might be surprised at the results! And we all know that it’s often the simple things that are the most productive.

4. List out as Many Solutions as Possible

Try to come up with ‘ALL POSSIBLE SOLUTIONS’ – even if they seem ridiculous at first. It’s important you keep an open mind to boost creative thinking, which can trigger potential solutions.

Coming from 10 years in the corporate advertising industry, it is drummed into you that ‘No idea is a bad idea’ and this aids creative thinking in brainstorms and other problem-solving techniques.

Whatever you do, do not ridicule yourself for coming up with ‘stupid solutions’ as it’s often the crazy ideas that trigger other more viable solutions.

5. Think Laterally

Change the ‘direction’ of your thoughts by thinking laterally. Pay attention to the saying,

‘You cannot dig a hole in a different place by digging it deeper.”

Try to change your approach and look at things in a new way. You can try flipping your objective around and looking for a solution that is the polar opposite!

Even if it feels silly, a fresh and unique approach usually stimulates a fresh solution.

6. Use Language That Creates Possibility

Lead your thinking with phrases like ‘what if…’ and ‘imagine if…’ These terms open up our brains to think creatively and encourage solutions.

Avoid closed, negative language such as ‘I don’t think…’ or ‘But this is not right…’.

The Bottom Line

There’s nothing scary about a problem when you start to adapt my advice.

Try not to view problems as ‘scary’ things! If you think about what a problem really is, it’s really just feedback on your current situation.

Every problem is telling you that something is not currently working and that you need to find a new way around it.

Advertising

So try to approach problems neutrally – without any judgment. Practice focusing on defining a problem, keep calm and not to make things too complicated.

More About Problem Solving

Featured photo credit: Unsplash via unsplash.com

Reference

[1] Planet of Success: Problem vs Solution Focused Thinking

Read Next