Business is often presented as a field of activity in which everyone can potentially succeed. It is as if universal laws and rules are acting in it, following which any person can come to success. This is partly a fair opinion, since the same principles and mechanisms in entrepreneurship really exist and often form the basis of quite viable strategies. The only problem is that a huge number of third-party influence factors do not allow us to consider business development as a linear and fully calculable activity.
As a result, the personal factor, a set of traits and abilities of a leader, begins to influence the survival and success of a business. Of course, there is a conditional set of opposing qualities that will say that a particular person is not yet ready for entrepreneurial activity. About them and will be discussed below.
1. Low resource base
A preoccupation with current tasks may not allow a novice businessman to clearly define the thresholds beyond which the resource material will end (money, time). Any business at first only requires money, supplies and time, but does not give anything away. If there is no understanding of the adequacy of the volume of the initial reserve of resources, sooner or later the case will burn out.
2. Excessive caution
Reverse example in relation to the previous paragraph. This is the type of entrepreneurs who, when managing their funds, show excessive savings and caution, right down to fear. This quality preserves the business and does not allow it to develop properly.
3. The desire for quick profit
There is nothing wrong with the desire to have a return on business as such. Actually, for profit it is created. But many expect this return in the early stages and, what is most erroneous, they intentionally manage the company so that the first revenues come as soon as possible and in large volumes. And this fundamentally violates the basic growth strategy.
4. Inability to control finances
Throughout the life of his business, an entrepreneur should regularly monitor financial activities. Reports on expenses, incomes, investments and indirect expenses should be viewed to the last point with the smallest numbers, which will allow you to see the dynamics of the growth or decline of the enterprise in detail.
5. Lack of strategic vision
A look into the future is a development perspective, the ability to notice trends and guide the company in accordance with them. A visionary businessman may be wrong, but if he basically has no strategy, his business is doomed to failure.
6. Ignoring the market
A detailed business plan and huge reserves of resources for years will not make a startup successful if the market is not ready to accept the proposed product. Moreover, the situation depends not only on the demand for a particular product, but also on the number of competitors with similar offers.
7. Profitable idea
Especially in the early stages, how the startup is advertised will be of great importance. The idea itself may even be a failure due to objective reasons, but if the author correctly and firmly believes in success, the author will advertise it, potential investors will certainly pay attention to it. Conversely, even a promising idea without proper advertising support is unlikely to interest anyone.
8. Risk preparedness
Many people who made attempts in business ended up in debt, which forever discouraged them from such activities. It must be clearly understood that a business is not a job with a guaranteed financial inflow, but rather a risky business that can bring only losses. And here it’s worth giving another example, when people, after several unsuccessful attempts in business, did not give up and at some point still achieved success, taking their places in the ratings of the largest billionaires in the future.