By Analytix Editorial Team
Why do some businesses fail while others take off almost right from the very beginning? Is it the services they provide or products they offer to their clients? Is it the way in which they conduct business or the competencies they possess that make or break a business?
Businesses could fail for a number of reasons, including:
The last item more often results from not outlining objectives clearly.
Establish Clear Business Goals
Establishing clear goals should be priority; most businesses fail because they lose focus and direction midway. Outlining and defining your goals gives you direction and allows you to progress systematically. It helps to define goals clearly. For small to mid-size businesses and enterprises, well-defined goals can help provide much-needed motivation as well.
Ideally, separate them into different sections like service goals, financial goals, and business development goals. Keep in mind that some goals will be dynamic, changing as the business gathers steam.
Understanding Core Competencies
When you first establish a service goal, you come closer to understanding your core competencies. Core competencies take into account ability together with the resources available to you. So, how do you identify and analyze your core competencies? To identify your core competencies, remember:
To this end, your core competencies can be varied. They can be technical or related to a particular product. Your core competencies could lie in the way you deploy and manage a process such that your client can optimize their own resources and infrastructure best.
Identify areas lacking expertise
A startup may get crippled by lack of expertise in a specific area or industry. This can be reflected in terms of poor work quality, incorrect pricing strategies, or inaccurate delivery time.
Areas lacking in expertise can include a service, a process, or even something technical, such as a particular technology you may be unable to install.
For a small business, for example, utilizing technology can prove to be extremely advantageous. How often do you come across a website that seems promising, only to discover that the business backing it up cannot live up to its claims. Some businesses may not be able to afford current technology and expenses that come along with it. However, in current times, technology is woven across business functions and any incompetency could also surface in the administrative, operational or financial areas of a business which require their own expertise. Problems in any of these areas can impact startup operations, thus leading to failure.
Every business will face challenges at some point; success lies in resolving issues as best as you can.
If it is niche services like specific IT matters, accounting and financial matters, marketing services etc., you may be better served by outsourcing. Outsourcing can take care of your need for expertise, together with budget restraints.
Launching a successful startup involves hard work, discipline and a certain amount of business “know how”. Analytix Solutions has a team of experts who work with startups to improve their business processes and help move their company forward. For a free analysis of your business processes and more information on how we can help your business succeed, please contact us at [email protected]