In the UK between 2000 and 2007, an average of 260,000 new businesses were set up every year. Over the same time, an average of 230,000 businesses closed every year. This number is incredibly high, showing that many businesses do not survive beyond their first year.
There are many things that contribute to the success or failure of a business. One thing that many business failures have in common is a lack of planning Ė business planning, financial planning or marketing planning. Serious stuff and yet so many businesses donít do it properly.
If youíre thinking about taking a few short cuts on the route to business success, this issue of Scribbles, inspired by an article published by EnterQuest, should help get your business on the scrap heat pretty quickly.
How to be a Business Failure
Here are five steps to follow, to guarantee the failure of your business.
Follow the first idea that comes into your head
Once you've thought up a business idea or concept, don't waste a second. Get it started straight away. Start up a business you know absolutely nothing about, or look for a 'here today - gone tomorrow' business fad.
Avoid market research
Nobody knows the market better than you and what's a market anyway? You've spotted the business opportunity and you'll only get rich quick if you get on with it and sell it to everybody you can. Donít waste time getting bogged down looking for a market niche with genuine needs and demands to which that you could offer a service.
Run a business that doesn't need any marketing
You donít need marketing because your own brilliant ideas are enough, arenít they? Marketing's just a textbook term anyway. Why start broadcasting the reasons why your service is so good, when all that will happen is that you end up giving your competitors a chance to copy all your ideas? Better to start up a business that will promote itself and where none of your competitors will have a clue what you're up to.
Beat your competitors by selling at rock bottom prices
Running a competitive business is easy. It doesn't matter how many competitors you've got, just make sure your prices are much lower than theirs. Don't worry about working out how much your product or service costs. If you sell enough at ridiculously low prices you will be the customer champion in no time at all, which is the fast track to making a profit.
Get advice from people who know nothing about running a business
There are plenty of "experts" out there who will gladly give you the advice that they've probably read somewhere. There are even serial business failures who'll give you more tips like the ones in this newsletter, to make your new venture a spectacular failure.
Are you practising some of these tried and tested methods to guarantee the failure of your business?
If you are, perhaps now is the time to smarten up and find other business owners who can tell you about their own experiences. Do some networking, find a mentor or get some training. At first you might not like what you hear, but if you want to create a success business rather than yet another failure, it might be time to do some planning.