We've all heard how the majority who try to start their own business, go out of business. But what are the reasons? In this article I'm going to share with you the 5 things that put most people out of business.
1. Lack self-discipline.
If you're the type of person who needs to be told what to do, you're better off working for someone else. To run a business you need to be self-motivated. Nobody is going to force you to get out of bed or meet a deadline. If you can't bring yourself to do what you don't feel like doing, when you don't feel like doing it forget running your own business and get a job.
2. Lack of determination.
When you start a business things are not going to go smoothly, especially if you have real, live customers. If you're the type of person who's going to give up when the tough gets going it's time to start passing out your resume.
3. Too stubborn to change.
Running a business is tricky because you have to be determined but not too stuborn. The difference is subtle. I like to think being determined is when you're focused on reaching the desired outcome and being stubborn is when you get hung up on something that doesn't affect your final outcome. If you want to stay in business you have to be willing to admit you may have made a mistake and try another direction. Finding the route to success is a process that's going to require trial and error.
4. Not being customer centric.
Too many businesses fill their day with busy work and fail to apply enough of their time and resources to attracting new business and/or getting referrals from their existing customers. If you can't make one customer happy it's going to be hard to grow because the best way to grow is from word of mouth. There's no more cost effective way to get new customers than to create a product that's so good, or have a service that's so good, people tell their friends about it. You'll never get to that point if you think starting a business is about busy work.
5. They don't charge the right price.
It's hard to be both Nordstrom and Walmart. Pick one, and stick with it. If you attract customers because you're the low price solution, work hard to keep prices lower than competitors. Streamline everything and win the efficiency game. If you attract customers because you have something one of a kind, world class, and unique, don't undersell yourself. Know the choices your customers have in the marketplace and price yourself high enough that you can deliver that world class product or experience everytime.
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