This ebook is perfect for anyone who is branching into the world of business and needs a solid understanding of business principals. Businesses don’t need to fail! What you do in the planning stages of your business can make or break you so it’s wise to do a little reading first… Businesses Don’t Need to Fail
Any one starting a new business has to deal with five things – 1. Getting a product that can be sold. 2. Establishing systems to manage the business. 3. Finding potential customers. 4. Selling to those potential customers. 5. Delivering the product.
This may be a simplistic view of business, but it is a very helpful way of understanding what needs to be done, and doing it properly. Think of these as the “five key areas of business”.
Businesses Don’t Need to Fail
It is often said that many new businesses fail. Different figures are quoted indicating that approximately 10% of new businesses fail. They usually fail for one reason – because they don’t attend to all five areas of concern above. It may be that they don’t deal with all of these things because they do not have sufficient resources, for example:
1. Getting a product that can be sold – They choose a product that is already sold well by another large and well-established company. They can’t compete financially or offer comparable service.
2. Establishing systems to manage the business – They are so busy looking at the product and finding customers that they don’t also take an overview of how they are going to run the business effectively and efficiently. Finding potential customers – They can’t afford the marketing required to reach their potential clients and don’t know enough about how they can market for free to do so.
3. Selling to those potential customers – They haven’t conducted enough market research to see who they can sell to. For example by advertising their skateboards and rollerskates in Saga magazine (a magazine for over 60s). This may be a massive generalisation, there may be people over 60 who like to skateboard, but the demographic would suggest that their market is likely to be better aimed at children, teenagers and those in the early 20s.
4. Delivering the product – They may not have taken postage charges into account when pricing their product. They may find that other similar businesses are offering free delivery and they can’t afford to. And so on…..