Business Tips :The most common mistakes in business

The most common mistakes in business

Thursday,May 01 ,2008

Why some times some business goes to bankrupt?

This is common question especially if our business is failing and we are not able to see any profit from it.

There are many factors which determine a success in business or its failure.

1-The location of your business. When we talk about sales, the thing that really matters is our target costumers; a wrong location may attract wrong customers if any.

2-High Prices: What happen when we go to the supermarket a try to buy a product but we find that is two times more expensive than wal-mart? Well, the logical answer is, we do not buy it, even if wal-mart is 10 miles away, we prefer to expend money on gasoline instead of buying expensive products in a supermarket. So it is logical, when you sell at higher prices than the competence, you will loose customers if already had one.

3- Business without continuous improvement: Improvement is important for businesses, if you are away from any useful upgrade for your business, eventually, your business will become obsolete and therefore nobody is going to buy products from you and your business will be on bankrupt.

4-Bad Service: Many businesses goes to bankrupt because they provide a bad service. What will happen if you go to a restaurant and you find out that the table that the waiter choose for you is still full of dishes of their last customers? You may get a little angry, so a bad service leads to low sales and thus to bankrupt.

5- Low initial investment: Most businesses need an initial investment in order to be successful however, many people may think different, lets suppose you have enough money to set up a new business, so you have $30,000 and to set up you business you need $25,000, great! You have the cash, but, what will happen before that? Usually, if you are lucky your business will be sustained for more than a month but after you will be going to bankrupt. Why? Your business will not have your desired profit at the very beginning, so you must have extra cash in order to sustain you business, also you must keep in mind advertising.

6-Advertising: A business without advertising is not a business at all; your business has to be seen by your customers in order to buy on it. A bad advertising program for a business is like a business without advertising, because you will not attract customers to your business. Bad advertising is when you publish your ads into a wrong location. For example: Let’s suppose you have bicycle store and you want to advertise a new product or to promote your business. What will happen if you publish your ads into a lingerie store? Perhaps you will get some customers if you are lucky. Many entrepreneurs are too desperate to make a sale that they will publish ads everywhere, spending more money than having more profits.

Category Business Tips

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