On this week’s blog, we share a special guest post from entrepreneur Varun Datta! Enjoy :-)
The worst case scenario for a business is that it fails. But sometimes, the person behind the business isn’t even sure why it failed to begin with. So why is it that a few businesses succeed while so many experience failure?
In order to succeed as an entrepreneur, you must focus on the following:
1. Mission statement and core values.
A mission statement is a brief statement that defines why your organization exists. The mission statement thoroughly describes your products and services, including who your target market is. If done right, your mission statement will communicate the essence of your business to the world. In addition to this, the fundamental beliefs which drive your business are your core values. Being your guiding principles, core values should always remain constant, even if your establishment grows.
2. Who are your customers, what is your product/service?
Having a precise definition of your customer base ensures success in your business. It is not an abstract idea and is something which can be expressed in numbers. Moreover, the services or products you offer should be clearly defined. It would not be possible for you to effectively sell, or market your services without a precise definition.
3. How will you market and sell your service or product?
One of the most prominent business challenges is marketing and selling your services, therefore it is important to set measurable goals including a full proof marketing and sales plan. To prepare, you don’t need a formal business plan, if you thoroughly make a plan for your business, your chances of success will be much greater. It should be understood that you should not confuse planning with avoiding action.
The primary reasons that many businesses fail to involve the following:
1. Leadership isn’t clear.
Being transparent in your leadership will be key to your success. Whether it is employee management or financial management, poor leadership skills will eventually trickle down each & every aspect of your business. It is mandatory that the leadership make the right decisions most of the times.
2. Premature scaling.
It is true that scaling is a good thing if it is done right, but premature scaling of your business will destroy it. If you are spending too much time on marketing or hiring too many individuals quickly - it can seriously backfire. There are many organizations who tried to grow too fast that eventually broke them, and even the brand equity couldn’t save them.
3. Macroeconomic factors
Macroeconomic factors can’t be controlled by any entrepreneur. The most common macroeconomic factors include inflation, business cycles, recession, or government debt. Since these factors play a major role in any business, it doesn’t mean that your business won’t survive in bad times. HP, Microsoft, Trader Joe’s, Hyatt, are some of the examples of successful organizations who started in tough times and pushed through.
If you’re interested in starting a business, I highly recommend taking the considerations above into account before getting started. Remember that careful planning will help in better execution.
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Varun Datta is a successful entrepreneur having many years of experience. He is the Founder and Chairman of a multinational firm, 4New Ltd. Over the years, he has made a huge name in the business market.