90% of start-up businesses fail within the first year and there is absolutely no surprise in that. It is a widely accepted global statistic after a study of the number of start-up companies that fold within a year was done.
Thousands of successful businessemen and women would attest to the fact that they have failed many times before they could taste success. In fact an average millionaire has been close to bankruptcy three times, a fact that underscores that running a successful business is not only about the acquisition of capital and production.
It involves an array of factors that we will unpack today specifically to try and assist young budding entrepreneurs to avoid common start up mistakes. While some of the factors are conventional wisdom the MoneyMind perspective is acutely different.
The long heralded belief that a business is different from its owner at least in terms of the legalities has every ounce of truth in it but most of the time a business reflects the characteristics of its founders. The strategic direction and the philosophy of the company in many ways reflects the wishes, ambitions and aspiration of the founders. In view of the above that is why it is important that entrepreneurs must personally develop themselves and their characters and habits to empower themselves to run successful businesses.
Before you think about running a business you need to self- introspect and work on the set of skills that will enable you to be a successful business person. If you don’t the lessons will be taught to you in the University of Hard Knocks in your businesses journey.
In essence it will be very difficult not to transmute your habits into your business especially when you are a sole proprietorship or a single shareholder. If you have good habits that is good inter-personal skills, you are persuasive and you are on top of your numbers then bravo! The problem is if you have bad habits you are likely to transmute them to your company especially financial imprudence.
Below are Money Mind’s’7 ways of avoiding business failure for start-up companies
7 ways to avoid business failure for start-up companies
Entrepreneurs never stop developing themselves. It is important for a would be entrepreneur to develop and prepare themselves for the world of business. Being an entrepreneur requires a key set of skills that will assist you in meandering through the intricacies of the business world. Because the world of business is changing every day and re-engeneering of processes is as frequent as ever anyone at the helm of the company need to be on top of his game.
Coaching and Mentoring
The best performing athletes have engaged personal trainers, coaches, and dieticians to name a few. They know that their success hinges on getting the best advices from professional experts. The same can be said for young entrepreneurs; they need coaches and mentors to guide them on how to successfully run a business. Mentoring and coaching take place over a long time lasting months and years and possibly even your life time. Bill Gates still has Warren Buffet as his mentor. If you have a coach and mentor you have somebody who have been through the journey and are alive to the pitfalls. Find a mentor or coach in a similar industry and avoid common mistakes.
Successful business people have robust and powerful networks of people that add value to their personal and business lives. They join networking association which gives them access to people who can give business opportunity. Networking associations provides you with free access to a variety of people with unique skills that you may need from time to time including free counsel. Furthermore network associations are good as ports for referrals.
Build a team
Microsoft and Apple thrived from building teams that share the same vision and ideals. It is important that a business build a team that is clear on its mandate. Every member of the team must fully comprehend their importance to the team. A team moving in unison is the greatest asset to any entrepreneur. Build a team based on the principles of accountability and ownership will create a great working environment.
The idea behind the business is to push the profit margin and this is generally done by pushing sales and lowering production costs. Entrepreneurs need to have a basic understanding of key financial indicators. You need as an entrepreneur to have a finger on the pulse of your company and there is no better way than be able to read your financial statements.
Be decisive as an entrepreneur because procrastinating to take remedial action when needed may only exacerbate the problem. This also true when you need to make decisions on new opportunities. Decisiveness is one attribute that entrepreneurs have; they are never in the middle and know exactly what they want. Take a decision now than later. They say indecision is a decision in itself.
Everybody is in sales, so you need to be a good sales person to be able to sell yourself and your company. Entrepreneurs are very persuasive and gifted with a great ability to make others sees their vision. Your employees need to buy your vision and the market needs to buy your products and the best way is to be a good salesman.
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China’s Gross Domestic Product (GDP) expanded by 3% year-on-year to 121.02 trillion yuan ($17.93 trillion) in 2022 despite being mired in various growth pressures, according to data from the National Bureau Statistics.
The annual growth rate beat a median economist forecast of 2.8% as polled by Reuters. The country’s fourth-quarter GDP growth of 2.9% also surpassed expectations for a 1.8% increase.
In 2022, the Chinese economy encountered more difficulties and challenges than was expected amid a complex domestic and international situation. However, NBS said economic growth stabilized after various measures were taken to shore up growth.
Industrial output rose 3.6% in 2022 over the previous year, while retail sales slightly shrank by 0.2% data show that fixed-asset investment increased 5.1% over 2021, with a 9.1% hike in manufacturing investment but a 10% fall in property investment.
China created 12.06 million new jobs in urban regions throughout the year, surpassing its annual target of 11 million, and officials have stressed the importance of continuing an employment-first policy in 2023.
Meanwhile, China tourism market is a step closer to robust recovery. Tourism operators are in high spirits because the market saw a good chance of a robust recovery during the Spring Festival holiday amid relaxed COVID-19 travel policies.
On January 27, the last day of the seven-day break, the Ministry of Culture and Tourism published an encouraging performance report of the tourism market. It said that domestic destinations and attractions received 308 million visits, up 23.1% year-on-year. The number is roughly 88.6% of that in 2019, they year before the pandemic hit.
According to the report, tourism-related revenue generated during the seven-day period was about 375.8 billion yuan ($55.41 billion), a year-on-year rise of 30%. The revenue was about 73% of that in 2019, the Ministry said.
The state of the art jewellery manufacturing plant that has been set up by international diamond and cutting company, KGK Diamonds Botswana will create over 100 jobs, of which 89 percent will be localized.
Local diamond and metal exploration company Tsodilo Resources Limited has negotiated a non-brokered private placement of 2,200, 914 units of the company at a price per unit of 0.20 US Dollars, which will provide gross proceeds to the company in the amount of C$440, 188. 20.
According to a statement from the group, proceeds from the private placement will be used for the betterment of the Xaudum iron formation project in Botswana and general corporate purposes.
The statement says every unit of the company will consist of a common share in the capital of the company and one Common Share purchase warrant of the company.
Each warrant will enable a holder to make a single purchase for the period of 24 months at an amount of $0.20. As per regularity requirements, the group indicates that the common shares and warrants will be subject to a four month plus a day hold period from date of closure.
Tsodilo is exempt from the formal valuation and minority shareholder approval requirements. This is for the reason that the fair market value of the private placement, insofar as it involves the director, is not more than 25% of the company’s market capitalization.
Tsodilo Resources Limited is an international diamond and metals exploration company engaged in the search for economic diamond and metal deposits at its Bosoto Limited and Gcwihaba Resources projects in Botswana. The company has a 100% stake in Bosoto which holds the BK16 kimberlite project in the Orapa Kimberlite Field (OKF) in Botswana.