During my journey as an entrepreneur, i have encountered so many challenges as well as difficulties with making money and i am pretty sure the same thing applies to many if not all entrepreneurs out there. Learning from others lifestyle, from business men and women around the world and exclusively from my personal life, i will be sharing detailed tips about ten reasons why your business is not making money even while you think everything is set.
If you ever feel like your business is lacking growth in one way or the other “not necessarily financial issues”, then this article is for you. Read on.
What us a Business: Often and often I have seen so many people talk and discuss about starting a business but believe me most if them don’t even know what type of business they need to start and what appropriate time they should start. Most time I can see people only think the goal of every business is all about making money. Don’t get me wrong, every one does business to make money, earn a living and setup great things. However, money should never be the first goal of a business. I will explain reasons in the outlines below. Back to our question ” What Is a business? “.
A business is an organization or enterprise engaged in commercial, industrial or professional activities to either produce, sell goods or services to satisfy human/economic needs/wants”.
Point to Note: Satisfying human wants comes first before you can make food money from your business.
10 Reasons Your Business isn’t Making money.
1) Wrong Business:
Tough decisions are to be made when starting or trying to start a business. Here’s a list of factors to be considered before starting a business;
*Factor 1 – Do I love this business?
*Factor 2 – Can I cope with this business?
*Factor 3 – Can this business improve my career?
*Factor 5 – What are the percentage of disadvantages over advantages in this business?
*Factor 6 – Can I take the risks involved in this business?
*Factor 7 – Will my plans go straight as I assume?
*Factor 8 – Does the people want this Kind of business?
*Factor 9 – How Kong will i last in the competition?
*Factor 10 – How strong am I willing to make this business become?
Good luck to you if you could answer those questions with the quickest speed without waiting a second to think about it. Even if you did ask yourself again “are my answers correct?”.
Thinking twice or ten times won’t kill you as an entrepreneur or a business man it will only reduce the chance of you making a terrible mistake. The moment you decide what business you’d like to start, that’s when you begin the real journey. However, you should understand that starting Tue wrong business will get you nowhere.
Starting off a business with a weak impression, (I.e in a weak state) will definitely close that business up in less then a year. I understand that every new Startup might lack so many resourced L’s required to boost their appearance but I tell you, do not forget that the sole secret to Startup development is packaging along side with doing the right things. Yes. packaging your business and let people see you worth more than what they think you’re worth. However, do not ever use deceitful ways to grow your business ” Karma” surely will catch up with you somehow.
When you start, you only need to keep building and improving your current strength. How would a baby lift a “barbell”?. At the very least you need some strength to stand up and walk. Even more you need more strength to keep walking. When you’re planning to start your business, make sure to start string. That’s how you will remain strong.
3) Poor strategic approach:
You need to smartly devise your business’s strategy and make sure the brain working behind it doesn’t sleep for a second.
Every day new businesses create advanced strategies to solve their own business problems and difficulties. While you’re relaxed thinking you got one strategy in your head, your business ranking rapidly drop if not fall out of the market. I have written in my past articles that “every single business us not new, others are also doing it in a very large scale even better than you. The only factor that makes you stand out us your strategic approach”.
Do not try to use other people’s strategic approach. It might not work for you. If you realize you’re not the fast thinking kind, then get out there, search for and select competent talents to build your empire with you. Might be your friends, neighbors, school mates or just someone who thinks he or she is a nobody on the street. Do not let their talents get wasted. Put it to good use.
4) Little or no Demand:
When you setup a business that is not capable of satisfying basic human needs/wants, that business will definitely get list in the struggle of sale.
These five factors need to be considered when you need to decide what your business should be like;
* Factor 1 – How helpful will my business be to people?
* Factor 2 – Who needs my business (goods or services) ?
* Factor 4 – Will the masses appreciate my business?
* Factor 5 – Are people wants satisfied through my business?
Getting these five factors ready, deciding your kind/type of business the right way is the best way to build a successful business.
Related: Top 10 businesses people can’t do without.
Make sure your business is that kind that will last king in demand and also that will get a large customer base.
5) Targeting Wrong Customers:
Targeting the wrong set of people to patronize your business will result in you getting zero response from your campaigns. Spending thousands and millions of dollars on marketing will yield wrongly when you fail to target and engage with the right audience that really needs why you have to offer.
For example: I have nothing much to do with real estate, so giving me a flier or sending me an email about real estate will be a partial loss to sender. Even though I received and read through, I wouldn’t give yes as a straight response. But send me thousands of messages about entrepreneurship, entrepreneur meetings and conferences, motivational books, I will make sure to read them all. If you get what I mean the you probably understand that you need the right people to drive your business to success.
6) Spending Wrongly:
When you spend the wrong way it is a given that the business will collapse and go bankrupt anytime soon.
Anytime you spend out, make sure you always get your capital back with returns and if spending out a particular amount doesn’t turn out to yield a good profit, I should return at least the capital.
When you spend wrongly you loose putting your business at risk. Always think hard before you pursue the next agenda on your list. One right investment can change your business’s financial story as much as one wrong investment could end everything you’ve worked so hard for.
Make sure you don’t spend your money just because you’ve found an opportunity to double your investment. I want you to understand that “not every opportunity is golden, but the ones you choose wisely”. Try to minimize wrong spending and your business will rapidly thrive better than your expectation.
7) Lack of Confidence:
When doing anything, not specifically business, you need to be sure, active and confident about what you’re doing.
80 percent of business people/entrepreneurs are psychologists who could easily read your mind through every statement you utter. To deal with this kind of people you need not to be deceptive nor cunning. Be straight forward, clear and transparent, show no fear. Till date I have seen people who still say they’re afraid to negotiate business or make cells for partnership. Most time I ask why and to my surprise, the answer was ” I do not want to get a negative response or get embarrassed on phone “. Whoa! Nobody cares about negative responses, all you need is to do more and get as much positive response you need.
When you make connections in business, make sure you’re making the right ones. Is there a thing like a wrong connection in business? Oh Yes!. If your business is not influenced the right way, that business might end up really bad. Like going bankrupt, lost in sale, lost in credibility, lost in satisfaction and many other devastating challenges will point to your business when you choose the wrong partners.
“Making connections has to with building your industrial or professional influence through partnership”. You have to be smart enough to decide if keeping a particular partnership will bring you loss or guarantee your success.
9) Wrong Thoughts:
Thinking the wrong way or thinking all about negativity will get you nowhere close to achieving what you have set out to achieve. It is better not to start a business than trying to run your business with a negative mindset or belief. Your business will surely follow in that direction but when you decide to run things with a straight and positive mindset believe me you will get the right answers and also the best result in your business.
In the rules of success, hardly will you read through without finding a passage that speaks about consistency. Most business owners stop doing more because they’re happy with where they are it with what they recently achieved. You shouldn’t stop doing more just because you just achieved a huge success.<
his will actually make you successful but it won’t Keep you as a successful person if you do not do more.
Since you need to do more to get more, find the best ways to improve your consistency.
Conclusion: Every single businesses will face challenges but if you smartly and carefully examine your situation, you cab solve the problems you have.
Tobi Oluwatoyin is the founder of Legends Motivation . An entrepreneur, blogger, and digital marketer. He is a professional speaker on creative entrepreneurship, digital publishing and internet marketing. He dedicated much effort to solving entrepreneurship difficulties.