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6 Reasons Why Business Fail!

If you’re starting a new business, probably one of the biggest fears you’ll have is: “…what if I fail…?” Keep these ideas in mind when launching your new or existing business; of course there’s more, but this is the most consistent answers I’ve heard from entrepreneurs, blogs, surveys, and other articles…

Reason #1: Not Investigating the Market

So you’ve always wanted to open a real estate agency, and you finally have the means to do so, but your desire to open the agency blinds you to the fact that we’re in a down housing market and the area where you want to work is alre

ady saturated with agencies, making it very difficult to break in. This is a mistake that will cause you to fail from the beginning. You have to find an opening or unmet need within a market and then fill it rather than try and force your product or service in. It’s a lot easier to satisfy a need rather than create one and convince people that they want to spend money on it

Reason #2: Business Plan Problems

A solid and realistic business plan is the basis of a successful business. In the plan, you will outline realistic goals for your business, how your business can meet those goals and possible problems and solutions. The plan will figure out if there’s a need for the business through research and surveys; it will figure out the costs and inputs needed for the business; and it will outline strategies and time lines that should be implemented and met.

Reason #3: Too Little Financing

If you have started a company and things aren’t working out, you’ve got little capital and a struggling business; you’re really not in a good position to ask for another loan. Be realistic at the beginning, and start with enough money that will last you to the point where you’re business is up and running, and cash is actually flowing in. Trying to stretch your finances at the beginning may mean that your business never gets off the ground, and you’ll still have a lot of cash to repay.

Reason #4: Bad Location, Internet Presence and Marketing

A bad location is self-explanatory if your business relies on location for foot traffic. Just as dangerous, however, is internet presence. These days, your location on the internet and your social media presence can be just as important as your company’s physical presence in a shopping district. Online presence will let people know that they can give you their business, so if the need is already there, the availability and visibility of your business is the next important step.

Reason #5: Rigidity

Once you’ve done the planning, established your business and gained a customer base, don’t get complacent. The need that you’re fulfilling may not always be there, monitor the market and know when you may need to alter your business plan. Being on top of key trends will allow you lots of time to adjust your strategy so that you can remain successful. One must only look at the music industry or Blockbuster video to know that successful industries can undergo huge changes.

Reason #6: Expanding Too Fast

Now that your business is established and successful, it’s time to expand, but you must treat the expansion like you’re starting all over again. If you’re expanding the reach of your business, make sure that you understand the areas and markets into which you’ll now be reaching. If you’re expanding the scope and focus of your business, make sure you understand your new products, service and intended consumer as much as you do with your current successful business. When a business expands too fast and doesn’t take the same care with research, strategy and planning, the financial drain of the failing business(es) can sink the whole enterprise.

TWITTER Tips For Small Businesses

I’m sure all of you have some great tips for small businesses on how to use TWITTER, it’s so important to get to know how to use TWITTER effectively; this way you’re allowed to build a brand and relationships with potential clients!!!! This post was with the help of Kyle Lacy (www.kylelacy.com), and with the help of others. If you should have some TWITTER tips that weren’t mentioned, post them, and I’ll be updating them periodically!!

1. Use your personal picture in your Twitter profile. There is only one situation where you can use your logo… if you have two profiles. Your personal profile and your company profile.

2. Don’t setup an Auto-DMto send when users follow you. Why you ask?

3. Use Twitter Search to find subject matters that interest you. This can cater to your business interests, as well as your personal interests. This will help you find people that share

4. Personal life reigns… but not too much. Add in some of your personal life while you are using TWITTER. What is important to remember is that you are using Twitter for your business generation as well. The people following you want to know that you are REAL… but not to the point where they are hearing about what you are eating or where you are driving.

5. It is important to use Twitter as much as you can but not to the point where you are wasting valuable time when at work. Tweet about what you are reading online.. Maybe a new insight you found while reading the night before. Try to use Twitter a couple of times a day.

6. Reply. Reply. Reply. Whenever you get a response (@yourname) make sure that you respond to the reply. This is extremely important because your most valuable followers are the people that respond and communicate with you.

7. Use strawpoll to create a survey to feed into your Twitter stream. This will be an awesome way to get information regarding service offerings and products.

8. Follow some awesome business Twitter people (@problogger, @chrisbrogan, @gacconsultants, @business901, @roundpeg, @Ribeezie)

9. Use a business Twitter account (example: @entrepreneurfyi) to create a great place for customer relationship management. Teach your clients to use Twitter to keep with the happenings of your company. Also, it can help you share the news and information regarding the success of your clients.

10. Use Twitter as a discussion forum. Ask your clients and prospective clients what they would like to see, hear, taste, and experience.

11. Twitter is not a place for you to hard sell individuals on services. We are here for discussions and not sales.

12. I started out with a personal profile that allowed me to create relationships before starting my company profile.I was able to cleaning transition between two accounts because people trusted me. If you start two accounts at the same time you will be overwhelmed and underwhelm your followers.

13. Use TweetLater for productivity. I don’t recommend using this tool much. You need to be involved in the conversation as you start sending tweets. If you are not there to interact with your followers there really is not a point for using the tool. Though.. it does help for those random tweets to stay connected.

14. Take pictures and share on TWitter. Add pictures on Twitter using Twitpic using your iPhone or mobile phone.

15. Use Google Analytics to measure the traffic directed from Twitter to your blog or website. If you can measure the traffic related to sales or aquisitions it help you understand an ROI from the tool.

16. Fill out your profile. Make sure you put information regarding your personal life as well as your business life. This is important because…everyone reads it.

17. We add our Twitter URLs to our business cards. I also like to add my LinkedIN account and blog URL. This will encourage more of your networking friends to follow you and communicate more effectively.

18. Download TweetDeck. Tweetdeck is a powerful tool to help you be productive while using Twitter.

19. Are you using a Blackberry or iPhone? You should definitly be looking at downloading an application to help you manage your twitter account while you are out of the office.

20. Thank you. When someone shares your post or tweet make sure you send a DM or Tweet thanking them for their support. Just as you should be emailing people to thank them for comments… same goes with Twitter.

Top 10 Start-Up Mistakes!

#1: Not Having a Clear Plan or Vision

“Having started a dozen businesses over the past couple decades, the one that motivated me was vision. If you cannot have a vision of where you want to be in ten years, twenty, or however many, then you will not succeed. This comes along with a basic business plan, but in that plan, don’t just think now, but think as far down the road as possible.”

“The biggest mistake people make is not looking far enough ahead in your market. So many businesses are losing ground to new technologies as example, so think ahead on how to better utilize these new technologies. With the current recession, how many planned for it? Every business will go through cycles of growth and market demize, just as we are all now seeing, so again, think ahead, have vision beyond today is one of the keys to success.”

“I think it is because of lack of planning and focus on what you are doing.”

#2: Surrounding Yourself With People Who Don’t Believe In Your Idea

“Another mistake would be surrounding yourselves with people (whether by accident or because they’re family, etc) who don’t believe in your idea. You need to be around positive feedback all the time.”

“Yeah, I totally believe surrounding yourself in people who dont believe you will succeed is bad. Especially when they bag out your idea, without actually giving their opinion. I have alot of people who with my current start up like that, so I choose not to speak with them. It makes you more determined I guess too.”

“Letting the negativity of those around you bring you down and “steal your dream”.”

“Also, (the) people that surround you affect your decision, so be wise and careful.”

#3: Not Having Enough Money

“I think this is big for those businesses that have the incentive to only reap the benefits and not focus on the longevity of your venture. Taking out $10k now may prevent making $100k in a few months. Mindsets should not be “Yeah I own a buiness I make this much” but rather “Yeah I own a business, we invested in XYZ and were able to afford this new service/expand here/etc” Also, too many people plan on the basic expenses of starting up, and don’t think about the increased expense that come with a more successful, growing, developing business.”

“In my personal experiences, I didnt look enough into the current market for my idea just see what is already out there, and underestimating the amount of capital needed to start the business.”

#4: Doing It All Alone

“Lots of CEO personalities think they have to be the answer to all problems, and this is not the case. Their pride and mindset of “I must live up to this role” is skewed and they may fail to tap the most important and valuable resources that surround them in their management team and affiliates.”

“Trying to do it all by yourself and not asking for help is also one of the reason why people find it hard to start a business. I mean, you can always have skilled people working for you for costs that is right on the budget. You just have to have the proper resources and people and your business will be up and running in no time.”

#5: Not Seeking Mentors

“I think having a mentor – a much more experienced entrepreneur that can give you some valuable advice is so IMPORTANT…especially when you are a young and overly ambitious… and with so many challenges to meet on the way to success.”

“Having a mentor is extremely important since my mentor advised me that creating a successful business will take a lot of time, effort, patience, dedication, and a clear plan and vision.”

#6: Losing Momentum

“Being satisfied and content with functioning can lead to “big headedness” and false hope that it will always be this way. You need to constantly improve your product/service, research your around-the-clock changing market and competition, and promote innovation and forward progress amongst your management and team.”

#7: Not Marketing Your Business / Expecting People To Come To You

“A few mistakes that I personally made was the lack of focus on a targeted marketing plan, and the miscalculation on future expected growth.”

#8: Not Looking At Your Competition

“I think it is a big mistake to start a business without really understand the market.”

#9: Being Overly Enthusiastic and Not Having Realistic Goals

“A few mistakes that I personally made was the lack of focus on a targeted marketing plan, and the miscalculation on future expected growth.”

#10: Not Thinking Survival

“Too many people think that so long as everything is done “textbook” and they have the proper set up, and plans down on paper, that they will succeed. Also, many people have the idea that it is easy to keep it up after they get an initial consumer base. Not true. small businesses are small fish in a big pond, constantly competing against emerging and growing bigger competitors that have the backing, both monetarily and resourcefully, to push them out of the picture.”

#11: Doing It Just For The Money

“If you want guaranteed income, go out and apply for a job, do your day to day task, and collect the check. Many times people try and look for the most lucrative, profitable idea that they can score an easy amount of money in so they can “live the dream”. A true Entrepreneur lives the dream by constantly growing and changing to address their market and benefit those who use their product/service. You need to cover costs and have the right to strive for wealth, sure, but that will NEVER come unless you sacrifice first and realize that the longevity and future potential for your business to weather the conditions presented from changing needs and business priorities, is first and foremost, or else you have simply wasted your time and effort to have your 15min and now are snuffed out thereafter.”