What Is Business - WHY 95 % People Fail In Business
Hello everyone, If you want to know about what is business and why 95% people fail in business than this is the perfect post for you. In this post, you are going to learn what is business and you will also learn why 95% of people fail in business.
In this article, I will share how successful people define business and my own definition of business. Nowadays due to the internet starting a business is becomes easier than ever before. Everybody wants to start a business but the reality is some people know what is business and few people start the business with the right intent.
It really matters how you define business.
It is important what you are doing but it is also very important why you are doing something. Most of the people starting the business because they want to earn more money, they want more freedom, they want to become own boss and in this beautiful journey some people able to achieve their goal.
In this article, I will share how successful people define business and my own definition of business. Nowadays due to the internet starting a business is becomes easier than ever before. Everybody wants to start a business but the reality is some people know what is business and few people start the business with the right intent.
It really matters how you define business.
It is important what you are doing but it is also very important why you are doing something. Most of the people starting the business because they want to earn more money, they want more freedom, they want to become own boss and in this beautiful journey some people able to achieve their goal.
Different people define business in a different way, the way the people define business has a great impact in their business. So it is very important to define business in an appropriate way. If you see successful people they are defining business in a different way and the people who are not successful in business are defining business a different way.
Successful people say business is all about solving a specific problem.
I define as business as business is a process of solving a specific problem by using different resources and in reword you will get money. If you see the businesses which is in your around you will find that somehow they are solving a problem.
Do you know why 95% of people fail in business because It really matters why you want to become an entrepreneur? 95% people are starting the business with the wrong intent and that's why they fail.
They are starting the business because they want to earn more money because they want freedom. No doubt you can earn more money you will get freedom but for that, you have to achieve certain level and if your main priority, your intent to start a business to earn more money to get freedom. You can't achieve that.
So you might be thinking what is the right intent to start a business.
You must start the business:- If you want to solve the problem, If you are really passionate about it, If you want to help people.
TOP REASON WHY BUSINESSES FAIL.
1. There is no need for your product/service in the market.
2. Ran out of cash.
3. They don't have the right team to run the business.
3.Couldn't stand up to the competition
4.Fail because of poor marketing
THERE IS NO NEED FOR YOUR PRODUCT/SERVICE IN THE MARKET.
Most of the people start the business without knowing there is a need for my product/service in the market that I'm going to create. Most people start the business because they know people who have started the business are earning a good amount of money right now so they also want to try. The very frist thing you need to do is market reaearch it doesn't matter which business you are going to do. It may be online/offline, weather it may be a product/ service. You have to do first market research.
In simple and leman language you can understand market research is a process of collecting data about your customer and about the marketplace.
You have to know how many people really interested in your product/service. Is there any product/service alredy avilabe on the market that are solving the problem or you are frist one in the market who will introduce that here is a product/service avilabe in ther market that can solve your xyz problem.
If alredy solution is avilabe in the market than you shoud know who is your competition. You should know about your competition not becaue you will compete with them. You can learn from your competitior so you can make a better product/serive which is not avilabe in the market.
You will get a lots of idea by knowing about your competition. How many people are buying, how much price people are willing to give.
If competitior is avilable than you shoud know each and everything about your competitior so you can make a better product/serive than your competitor.
You can save a lot of mony and time by analizing your competitior mistakes. People are doing the same mistake that their competitor have done because most people ignore it and few people understand the power of market research.
I know doing so it will take time, efforts and money but i will help you lot in the long term.
2.RAN OUT OF CASH
This is very common i think you have also heard about it from newspaper, tv or from magziner that xyz company fail because there is no cash to continue the business.
Companies face this challenge due to the wrong mindset. People starting because they are thinking it is the money making machine you have to buy it once and you have nothing to do rest of life. Money is a fuel of any business.
WHY COMPANIES FACE THIS PROBLEM
Companies fave this problem beause they can able to make profit. Their product/service is not selling. There is too much competiton in the market. Price is high, people don't want to buy.
This problem is occour beacuse as i alredy mention earlire they have not done market research before starting the business. If they have alredy done before than they have the proper idea about the problem they are going to face in the futere.
What's the solution to cure from this problem.
You must have the amount of money that is required to run your orginazation for 1 yr or 6 months in your bank account beause you are planting a seed it requires time to grown. Business is not something you have started today and tomorrow in your bank account have millions of dollars.
You have the enough amount of money in your bank account to run your business weather it will make profit or not.
Most of the time it have been observed that people are onely planning for a 2 months or 3 months.
PRO TIP:- You must to something in part time or whenever you will get free time from your business so you will have some cashflow. If you're doing this you are missing the very big thing. If you're starting phase do something that you even don't like it might be anything that give a good amout of money like if you have good knowledge of online that you can start dropshipping, blogging, youtube etc ther are tremendous of things you just need to explore.
Do something that you have enough money for livelihood, You must have enough money so you can live comfortably.
3.RIGHT TEAM
It does not matter how good is your idea, how much money you have but if you don't have to the right team to run the business than you can not pridict future, what will happen next.
If you have right and loyal them than you can be successful from a bad idea and even if you don't have too much money. Right team plays an important role in the success of any business. Right people will help you to overcome from the wrost situation in your business.
Picking right people in business is simillar as piking your life partner. A good life partner can help you to grow and a bad partner can make your wealthy lifestyle awful.
Finding good people for business it harder than it seems because you can pridict about the other person but you can not sure this is the right one and here no technology will help you to find a perfect people for your business. You can't know about the people and fully understand any people by taking the interview or from his/her resume because if anybody can write a good reasume and by practicing any one can crack the interview process. It is a very dificult task and important also for any business because you can not do all things alone at a momement you have to hire someone to help you.
PRO TIP;- People are hiring the person who know less or who have less knowledge than the person who is hireing so he/she can control them. Remember one thing if you're the smartest person in your team than you aren't always keep people around you who are smart than you.
3.COULD NOT STAND UP TO THE COMPETITION
If you will observe carefully than you will find that there are ready someone in the market who are doing the same thing that you want to do . There are so many people in the market and doing the same thing If you are not creative and you will not do any innovation in your business than it's hard to stand up to the competition.
WHAT YOU CAN DO
If you have done market research than you have got some loopholes try to solve them see what challanges your customers are facing try to solve them.
Let's understand this by an example suppose you want to start a restaurant. In every place, there are some restaurant avilabe and i think in your surrounding also have some. If you will start a restaurant where already avilabe than it's hard to successed.So what you can do analize the market and find what problem people are facing while eating food in restraunt. Suppose you have analized 10 restaurent and 1st problem you found that in restaurant food is delivering very late it takes too much time to deliver food to the customer and 2nd problem you have observed in your locality restaurant are opening from 8 am and closed at 8pm but there are customer comming in restaurent after 8 pm also so by combining both problem you can start a restaurnat where you will deliver food fast and your restaurant will open after 8pm also .
4.FAILED BECAUSE OF POOR MARKETING
Marketing is one of the very important aspects of the business.I was reading a book and the author was explaining that success of any product/service depends on 90 % in marketing and only 10% on the quality of the product. Now you have understood the power of the marketing.
Do you know Goole, Amazon, Patyam, Colgate etc you know all these companies because these companies have invested a lot of money in marketing and this companies are even investing money in marketing even this companies are successful.
If you're product/service solves any specific problem of the people then you have to reach to your targeted audience and you have to spread your message so people will know that you're existing in the market. You have to show them how you're product/service will solve your customer's problem. How they can buy you're product/service.
You have to show them how your product/service solved the problem of other people.
How many people are using your product/service. It is very important because we are a social animal, we want to purchase those product which are using many people.
You have to invest your money in marketing on a continuous basis so people will remember you.
HOW TO KNOW WHERE SHOULD INVEST
If you are wondering where you should invest because nowadays we have more options than ever before, It is hard to take the decision.
1. First, you have to define who is your targeted customer.
2. Second, you have to analyze where they are spending their time, what they are using for consuming information.
3. Third, One you have an idea where they are spending time and what they are using for consuming information than you have to choose according to your customer.
If you do so it will help you to take the decision where you should invest your money for the better return. It may be Facebook, Instagram, LinkedIn, any magazine or newspaper etc.
More you will know about your customer, you can do marketing in a better way. Spend some time to meet with your customer and ask them questions if they are facing some problem regarding your product/service than solve them.
Final Words
So, Guys This is how I define business, I hope You this article helpful for you, please do share and comment your thought about business. Thank You!
TOP REASON WHY BUSINESSES FAIL.
1. There is no need for your product/service in the market.
2. Ran out of cash.
3. They don't have the right team to run the business.
3.Couldn't stand up to the competition
4.Fail because of poor marketing
Most of the people start the business without knowing there is a need for my product/service in the market that I'm going to create. Most people start the business because they know people who have started the business are earning a good amount of money right now so they also want to try. The very frist thing you need to do is market reaearch it doesn't matter which business you are going to do. It may be online/offline, weather it may be a product/ service. You have to do first market research.
In simple and leman language you can understand market research is a process of collecting data about your customer and about the marketplace.
You have to know how many people really interested in your product/service. Is there any product/service alredy avilabe on the market that are solving the problem or you are frist one in the market who will introduce that here is a product/service avilabe in ther market that can solve your xyz problem.
If alredy solution is avilabe in the market than you shoud know who is your competition. You should know about your competition not becaue you will compete with them. You can learn from your competitior so you can make a better product/serive which is not avilabe in the market.
You will get a lots of idea by knowing about your competition. How many people are buying, how much price people are willing to give.
If competitior is avilable than you shoud know each and everything about your competitior so you can make a better product/serive than your competitor.
You can save a lot of mony and time by analizing your competitior mistakes. People are doing the same mistake that their competitor have done because most people ignore it and few people understand the power of market research.
I know doing so it will take time, efforts and money but i will help you lot in the long term.
2.RAN OUT OF CASH
This is very common i think you have also heard about it from newspaper, tv or from magziner that xyz company fail because there is no cash to continue the business.
Companies face this challenge due to the wrong mindset. People starting because they are thinking it is the money making machine you have to buy it once and you have nothing to do rest of life. Money is a fuel of any business.
WHY COMPANIES FACE THIS PROBLEM
Companies fave this problem beause they can able to make profit. Their product/service is not selling. There is too much competiton in the market. Price is high, people don't want to buy.
This problem is occour beacuse as i alredy mention earlire they have not done market research before starting the business. If they have alredy done before than they have the proper idea about the problem they are going to face in the futere.
What's the solution to cure from this problem.
You must have the amount of money that is required to run your orginazation for 1 yr or 6 months in your bank account beause you are planting a seed it requires time to grown. Business is not something you have started today and tomorrow in your bank account have millions of dollars.
You have the enough amount of money in your bank account to run your business weather it will make profit or not.
Most of the time it have been observed that people are onely planning for a 2 months or 3 months.
PRO TIP:- You must to something in part time or whenever you will get free time from your business so you will have some cashflow. If you're doing this you are missing the very big thing. If you're starting phase do something that you even don't like it might be anything that give a good amout of money like if you have good knowledge of online that you can start dropshipping, blogging, youtube etc ther are tremendous of things you just need to explore.
Do something that you have enough money for livelihood, You must have enough money so you can live comfortably.
3.RIGHT TEAM
It does not matter how good is your idea, how much money you have but if you don't have to the right team to run the business than you can not pridict future, what will happen next.
If you have right and loyal them than you can be successful from a bad idea and even if you don't have too much money. Right team plays an important role in the success of any business. Right people will help you to overcome from the wrost situation in your business.
Picking right people in business is simillar as piking your life partner. A good life partner can help you to grow and a bad partner can make your wealthy lifestyle awful.
Finding good people for business it harder than it seems because you can pridict about the other person but you can not sure this is the right one and here no technology will help you to find a perfect people for your business. You can't know about the people and fully understand any people by taking the interview or from his/her resume because if anybody can write a good reasume and by practicing any one can crack the interview process. It is a very dificult task and important also for any business because you can not do all things alone at a momement you have to hire someone to help you.
PRO TIP;- People are hiring the person who know less or who have less knowledge than the person who is hireing so he/she can control them. Remember one thing if you're the smartest person in your team than you aren't always keep people around you who are smart than you.
3.COULD NOT STAND UP TO THE COMPETITION
If you will observe carefully than you will find that there are ready someone in the market who are doing the same thing that you want to do . There are so many people in the market and doing the same thing If you are not creative and you will not do any innovation in your business than it's hard to stand up to the competition.
WHAT YOU CAN DO
If you have done market research than you have got some loopholes try to solve them see what challanges your customers are facing try to solve them.
Let's understand this by an example suppose you want to start a restaurant. In every place, there are some restaurant avilabe and i think in your surrounding also have some. If you will start a restaurant where already avilabe than it's hard to successed.So what you can do analize the market and find what problem people are facing while eating food in restraunt. Suppose you have analized 10 restaurent and 1st problem you found that in restaurant food is delivering very late it takes too much time to deliver food to the customer and 2nd problem you have observed in your locality restaurant are opening from 8 am and closed at 8pm but there are customer comming in restaurent after 8 pm also so by combining both problem you can start a restaurnat where you will deliver food fast and your restaurant will open after 8pm also .
4.FAILED BECAUSE OF POOR MARKETING
Marketing is one of the very important aspects of the business.I was reading a book and the author was explaining that success of any product/service depends on 90 % in marketing and only 10% on the quality of the product. Now you have understood the power of the marketing.
Do you know Goole, Amazon, Patyam, Colgate etc you know all these companies because these companies have invested a lot of money in marketing and this companies are even investing money in marketing even this companies are successful.
If you're product/service solves any specific problem of the people then you have to reach to your targeted audience and you have to spread your message so people will know that you're existing in the market. You have to show them how you're product/service will solve your customer's problem. How they can buy you're product/service.
You have to show them how your product/service solved the problem of other people.
How many people are using your product/service. It is very important because we are a social animal, we want to purchase those product which are using many people.
You have to invest your money in marketing on a continuous basis so people will remember you.
HOW TO KNOW WHERE SHOULD INVEST
If you are wondering where you should invest because nowadays we have more options than ever before, It is hard to take the decision.
1. First, you have to define who is your targeted customer.
2. Second, you have to analyze where they are spending their time, what they are using for consuming information.
3. Third, One you have an idea where they are spending time and what they are using for consuming information than you have to choose according to your customer.
If you do so it will help you to take the decision where you should invest your money for the better return. It may be Facebook, Instagram, LinkedIn, any magazine or newspaper etc.
More you will know about your customer, you can do marketing in a better way. Spend some time to meet with your customer and ask them questions if they are facing some problem regarding your product/service than solve them.
Final Words
So, Guys This is how I define business, I hope You this article helpful for you, please do share and comment your thought about business. Thank You!
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