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The Most Common Reasons for Business Success and Failure |
| Date Added: April 29, 2011 02:20:10 AM |
| Author: Darko |
| Category: Business |
| Napoleon Hill has once said that you want to be successful you should study successful people and do what they do or you could alternatively study unsuccessful people and avoid doing what they have done. 1) Bad/good decisions making This is the most common reason why business fail as just one bad decision can be a reason for you business failure or success. Decision making is one of the most wanted skills in business and you can learn how to make good business decisions. There are many books written on this topic if you want to improve your decision making skills. Tips on decision making: when making decision do not rush, take some time with every decision and try to analyze advantages and disadvantages of your decision. In beginning this process will take more time but wit a little exercise you will become better. 2) Lack of business experience You can be the best tradesman in your trade but if you lack some basic business skills you basically have two options: improve your business skills or find some employment. Being in business requires you to have great communication skills, selling skills, some accounting skills, some understanding in general laws and to be passionate about your product or service. This can be learned and the best advice here is to find a good accountant and create a long term relationship with him/her. 3) Compliance and legal issues If you are running your business without any records you are not compliant and it is just a matter of time until your business will be forced to close. Even worse case could be that you are in some kind of illegal business activity or scheme. Be very careful with some offshore schemes and investing in tax havens as this may be illegal. 4) Bad cash management Even if you are ticking all the boxes in your business and your business is growing you have to monitor your cash flow daily and use some cash flow tools and have proper cash budget. Remember profit is not the same as cash. Your business may be profitable but without cash you will be forced to borrow or to close down. 5) Competition and market Always keep your eye on your competition and compare prices. If your competition is selling the same kind of product or service for half the price you do not have any other options than to match them. If you competition is improving their product or service you have to do the same. Not monitoring your market and competitors or not knowing who they are can be fatal. More unique your product/service is less competition you will have. This article is written and published by: Online Tax Agent Registered Tax Agent http://www.onlinetaxagent.com.au Read the full artticle here: http://onlinetaxagent.com.au/tax-tips/61-reasons-for-business-success-and-failure.html |
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