How would you feel if as an entrepreneur you failed in the business you were running? It cannot be denied that this is bad news that causes sadness, and often even results in excessive stress.
How could it not be, when you try as hard as you can to develop your business, you hope to reap abundant income from that business. Problems then arise because there is no serious increase in demand for your product. Moreover, if this continues for a long time, it is certain that the financial and psychological losses will be even heavier.
It is common knowledge that becoming an entrepreneur by running a business is not easy. It is also possible that lack of experience means your business is not running on the right track. So after working for a long time the sales turnover is still small. Even though you have spent quite a lot of capital.
If you are experiencing this problem, the best thing is to think about the factors that triggered your failure as an entrepreneur. The good news is you don’t need to think hard to find it. Because it could be that what you are looking for is already below.
Factors that cause you to become an entrepreneur who fails in business
1. Lack of competence in management
Management is an important factor supporting your success as an entrepreneur. Without competent management, you cannot manage your business properly and correctly. Indeed, basically knowledge about business makes you more competent. However, you can speed it up by imitating the management system of other similar businesses.
2. Lack of experience
Your hope of becoming a successful entrepreneur will be difficult to achieve if you lack experience. This doesn’t scare you about business, but more than that you have to learn how to coordinate, manage human resources (employees), etc.
Even though this cannot be achieved through practice (experience), at least you know the priority scale in business. So there is less potential for errors to result in losses.
3. Poor financial governance
Activities in the financial sector are very crucial for the life of a business. Without good and correct financial management, business problems will become increasingly difficult and complicated.
Basically, the financial sector includes business spending objectives, business spending policies and business financial spending procedures. All of these things will have an impact on the finances of a business venture. So, don’t act carelessly when discussing financial matters for your business venture.
4. Floating planning strategy
Something that is planned will have better results than something that is carried out spontaneously. This also applies to entrepreneurs who want to start a business. The planning in question includes employee selection, production plans or procurement of goods and marketing orders from buyers.
Employees should have good qualities, be honest and responsible. The production planning or procurement of goods must be clear by considering the quantity and quality of goods. Apart from that, you have to look at the number of orders received. Don’t let the number of orders be small, the stock of goods overflows so that it only exists as passive goods that fill the warehouse.
Meanwhile, for marketing and promotion matters, proper planning must also be carried out. There are various types of marketing media that beginner entrepreneurs can use, such as Google Adwords ads or Facebook ads. Without a structured plan you will fail as an entrepreneur.
Planning is the starting point of an activity, planning that is not yet mature will result in problems or difficulties in implementing a number of actions.
5. The choice of location is less strategic and narrow
In business, you also have to consider the location where you set up your business, whether it is your own or rented land. The strategic location makes business development easier.
It’s not a definite guarantee, but at least this location can attract the sympathy of many people to see it. If it turns out that your business is really good, chances are that the attraction will be stronger.
Apart from that, also pay attention to the size of your business location. Locations that tend to be narrow make it very difficult to develop optimally. For novice entrepreneurs, it may still be justified considering the new business is growing. However, if it is a long-term goal, you should not make a decision lightly.
However, you may choose a strategic location with a limited area. However, try to expand the area so that you don’t need to change to a new, unfamiliar location.
6. Lack of equipment supervision
Equipment in business must refer to the effectiveness and efficiency of work. Avoid buying equipment that has little use. Apart from that, make sure that the equipment you buy is of poor quality so that it doesn’t last long.
It must be understood that equipment in business must be updated at a certain time. So, also think about the cost of equipment depreciation every year or based on its minimum durability (for example 3-5 years). This way, equipment monitoring can be guaranteed and will not disrupt business development due to sudden costs.
7. Lack of determination and sincerity in trying
It must be remembered that no success is achieved with a relaxed nature and attitude. Therefore, strengthen your determination to reach the highest target you want to achieve. Don’t choose mediocre targets because this will weaken your seriousness in doing business.
In order for your determination and seriousness to be greater, you should have a clear time limit, for example within the next 3 months, 6 months, 1 year, 3 years or 5 years. This situation will make it easier for you to develop your business. If that happens then there is little chance that you will fail as an entrepreneur.
8. Not ready to face the transition in the business world
Every entrepreneur definitely wants the business they run to last a long time and continue to grow both in branding and sales turnover. When the business world was still popular with shophouses or offline, many entrepreneurs were successful in it. However, when the business world became familiar with the internet, most buying and selling transactions involved online.
Therefore, a good business is a business that runs dynamically and follows developments in the situation. Insisting on conventional methods will slowly destroy your business.
9. Making friends with the wrong people
The reality is that a business cannot be run alone. The business world needs other people to work together who can support each other. Seeing this, of course you have to make friends with people who have strong determination and enthusiasm to progress and develop. It’s even better if your friends have the same desire for success.
If you are wrong in this case then feelings of laziness or relaxing will often come to your senses. As a result, your enthusiasm to become an entrepreneur will stagnate. If this condition continues, it is very likely that you will give up in difficult situations in business. After that you fail to become an entrepreneur.
In conclusion, regardless of how difficult the business world is for an entrepreneur, it’s a good idea to look at it from a more complex perspective. Avoid the 9 causal factors above so that you don’t fail to become an entrepreneur . In this way, you can move forward with clear and neat calculations so that your chances of success are wide open.