In today’s business environment, there are many business ventures
to invest in. For this reason, it is important to be particular about the one
you choose invest in to avoid devastating losses. Here are 4 signs a business venture is going nowhere.
Lack of Focus
This is especially the case with start-ups. If a business venture
is focused on one thing this month, then next month the focus has changed again
to something else, and it’s the same a month or two after that, it’s a sign you
need to take note of. Weak and inconsistent focus is one of the number one
business killers, and any business without a focus or with one that keeps
changing or expanding is a venture you need to careful with.
All Income Comes From a Handful of Customers
The Pareto principle says that 80 percent of your sales will come
from 20 percent of your customers, that is 80% of the results stems from 20% of
the input. Therefore, if you find that with a business venture the number is
less, then you have to start to find ways to increase this number through
actions like marketing and networking. This will help to enhance the
sustainability of the business.
Little or No Excitement among Early Users
Especially for a business ventures that is service or product
centered, it is important for early users of the product or service to return
again and again. If new set of users keep coming in without you being able to
sustain their continued patronage then it’s a sign you need to be concerned
about. Your service or product should be able to create that buzz or effect to
sustain the patronage of early users to help validate your business idea.
Plenty Visionaries but Not Enough Doers
Visionaries are great for conceiving a potentially viable business
idea, but it’s important to work to bring these visions to reality. For this
you need to have doers on your team, people that can work and strategize to get
things to done effectively and efficiently to help bring your ideas to life.
Typically, there’s more programming and technical work to be done within the first
6 months of a business (when you’re trying to lay the groundwork for the
business) than marketing or business development work. After all, you can’t
exactly market a product or service that isn’t fully functional, that’ll be
putting the chicken before the egg.
Amazzzzzing insights for entrepreneurs
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