Who should not start a business?
Sometimes the question is asked: â€˜can anyone start a business?` Well, the truth is that yes, anyone can start a business, but if the question is “can anyone succeed in business?” the answer is no. This may sound a bit negative, but it`s a fact that many people start their business and fail before the end of the first year.
Indeed, statistics will tell you that eight out of ten people who start a business, will fail in the first year. There are many reasons why people fail and here are mentioned some of them.
Among the most common causes are:
â€¢ They do not have enough experience in the field of business when they start or that sometimes they fall into a line of business because an uncle or friend is doing well.
â€¢ They are advised by people that have knowledge and experience, or rather “bad advice”.
â€¢ People rush to start because they panic about leasing premises the selling of their equipment or franchise.
â€¢ They have not calculated the money needed to start and sustain the business.
â€¢ They have no money to live personally.
â€¢ Do not create or have the money for an advertising budget.
â€¢ They don`t trust certain sales tactic or are scared of trying them at all, such as door-to-door selling.
â€¢ Overestimate sales and underestimate or miscalculate expenses.
â€¢ Do not do a real research.
â€¢ Do not want to pay accountants, lawyers, business consultants, real tax experts and then end up in trouble.
â€¢ No matter if it’s from family or friends, if they have the same values and beliefs, have drawn up a contract between partners, this sooner or later (almost always earlier) starting problems and differences and then comes the “divorce”.
These are some of the reasons why people should NOT start a business. But do not worry, the solution is simple, makes a good business plan. Because someone can make a bad business plan and it will all go wrong nearly every time.
If you are looking to start a business Your Virtual Office London can help you get started. If you are looking to form a Limited company please do get in touch with our team, we have a great deal of experience in handling new clients with starting a company for the first time. What are you waiting for? make the first move.