You think you have a fantastic business idea but putting into action could cost you a lot of time, money and have little pay off. However, if you know the downfalls of starting a new business then you have less chance of failing. We asked barbershop start up experts, Stubble, to give us 5 of the most common reasons a start-up business may fail.
1. You start your business for the wrong reasons.
If money is your only motivation for starting your own business then it would be wise not to. Running a business takes a lot of time, effort and money to begin with. It may be a while until you see a real return. Of course if you have the backing of a start-up loan like we provide at Stubble then things become considerably easier as many of the overheads are taken care of already. When we are looking to create a partnership, we look for entrepreneurs with these qualities:
- Someone who has passion and love for what they do.
- A physically fit and mentally stable person who stays calm in the face of a challenge.
- Drive, determination, patience and a positive attitude.
- You thrive on being independent and can manage your own time.
2. Poor Staff
Poor staff is the number one reason that a start-up business will fail. The way that a business starts is the way that a business should go on. Picking dedicated, friendly and hard-working staff sets a blueprint for the future.
When you were younger did you ever have a job you started where all the staff members were unmotivated and hated their work? How did that make you feel when you joined? Create a great atmosphere with good staff and it will make starting up much easier.
3. Insufficient Funds
Too often business owners underestimate how much money is needed and they are forced to close before they even have had a fair chance. It is imperative to think about not just starting costs but the maintenance costs of the business. This is why so many barbers are turning to the Stubble franchise to aid them with funding and equipment.
4. Lack of Planning
It is critical for all businesses to have a good business plan. It must be realistic and based on accurate, current information and educated projections.
- Goals
- Work force needs
- Potential foreseeable problems
- Financial planning
- Analysis of local competition
- Marketing, advertising and promotional activities
5. No Website or Marketing Plan
It is not enough to simply “be there” nowadays. The internet is one of the most converting factors of a business and every one should have a website. Even if you do not sell physical goods, you must have a website that has information about your company. For example, when opening a barbershop, the website must include prices, opening hours and booking forms. Imagine a guy who is sitting in his office on a Friday afternoon, he realises he has a wedding on Sunday and desperately needs his hair cut. What barbershop is going to be open near his work at 5pm? If you’re not on the internet then that client does not even know you exist.
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