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WHY SOME VENTURES FAIL

Discover the warning signs that lead to venture failures: rapid growth, records management, undercapitalization, profit margins, financial mismanagement, employee relations, changing technology, external factors, personal stress, and research. Avoid common pitfalls with these essential tips.

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WHY SOME VENTURES FAIL

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  1. WHY SOME VENTURES FAIL

  2. 1. THEY IGNORE OR DO NOT RECOGNIZE THE WARNING SIGNS • Business owners must recognize signs in their own ventures, the industry, and in the economy.

  3. 2. RAPID GROWTH • Grow so fast that you may not have time left for important tasks (i.e., monitoring supplies, inventory, dealing with customers, or paying bills).

  4. 3. RECORDS MANAGEMENT • Must keep up-to-date and accurate records and must check regularly to look for warning signs.

  5. 4. UNDERCAPITALIZATION • Raise enough money to get started, but not enough to keep it operating in the long term.

  6. 5. Insufficient Profit Margins • Some entrepreneurs under price their product or service in a misguided effort to increase sales. • If revenues do not cover expenses, then the venture will fail.

  7. 6. Financial Mismanagement • Must have realistic sales expectations

  8. 7. Poor Employer-Employee Relationships • Entrepreneurs must keep their employees involved in the progress of the company, committed to its goal, and satisfied with their rewards. • Measuring staff turn-over and absenteeism is a concrete way of determining employee satisfaction.

  9. 8. Changing Technology • Need to keep informed about technological changes in order to stay competitive. • You must also be able to adapt to change quickly.

  10. 9. Outside Factors • Downturn in the economy that causes sales to drop or the government may change a policy to regulate something. This cannot be controlled, but they can be anticipated and planned for by studying current events.

  11. 10. Personal Stress • Life needs BALANCE between work and time spent with family or friends. You make poor decisions under stress, so you need to reduce stress levels.

  12. 11. Research • Do not do enough or the right kind of market research

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