WHY SOME VENTURES FAIL

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