Small business owners usually do not consider the possibilities of their business going down when they take the plunge. Though, according to reports approximately more than half of the new business ventures in Pakistan close down after 5 years of commencement. While you۪'re planning to start your new business, this percentage of failure should not hold you back. Instead just consider the following signposts before you dive in to become an entrepreneur.
It is very important that your small business has sufficient capitals to stand the initial few years decently. It is the time when small businesses experience uncertainty and development. Thus, while you're starting your business, it is a must that you're practically sure of your capitalization sources and have already planned and worked on your funding needs at different phases of your business growth.
Take notes! If you're not proficient in your chosen field of business and have scarcity of experience, your business can be adversely impacted. As a small business owner, you have to wear so many hats a time; from finance to marketing and selling, there are many things you have to do on your own which cannot be done properly if you lack experience in your business field.
Adequate inventory is indispensable for any business to run smoothly. Small business owners should be capable of managing their inventory effectually which means there shouldn't be a scarcity or excessiveness of inventory on hand. Poor inventory management can result in the decline of any business.
It is a fact that a business set on a poor location cannot reach its customers positively. If you�۪re located on a wrong place, it would be hard for your customers to find you and no customers denote no income. Moreover, the appearance of your building, population of the area where it is located, and proximity to business opponents also have a huge impact on your small business venture.
All of the above mentioned issues depend on the decision making abilities of the small business owner and his/her business management skills. Other than the problems discussed earlier, bad management in a small business can result in excessive use of funds, unnecessary investment in resources and not focusing on your niche etc.Thus, at times it is complicated to forecast each and every challenge a small business might come across. However, the problems discussed above can have a noteworthy impact on your small business and should be avoided to ensure success.