Signs your new business is not working
Going into the world of self-employment is as challenging as it is exciting. Your new business venture can become an extremely rewarding experience; but sometimes you must come to the difficult realisation that things just aren’t working. In the UK 1 in 3 start up businesses fail within their first three years. It’s important to think long and hard about the time and effort that you need to put in to create a successful business. Here are some of the warning signs that you should consider when becoming self-employed:
- Started for the wrong reasons – Enviously looking at other people’s success can lead to a business that hasn’t been thought through sufficiently. Just because other people have succeeded with theirs, doesn’t mean that the same goes for you. Carefully think through your plan before you put it into action. Starting your own business can take a couple years to really kick off so make sure the passion and drive needed is there, and will stay there.
- Not unique enough – Offering solutions to common problems might be the basis of your business, but what is really going to keep it affloat is how it differs from existing companies that offer the same services. Having a unique point of difference isn’t always enough, the solutions you offer need to be unique enough in themselves to convince potential customers that you are right for the job.
- Lack of financial return – It’s important to be able to work on what you love, but if it just doesn’t seem to work financially it might force you into a rethink. If you are putting in large amounts of time and receiving little in return, it doesn’t make much business sense to continue the way your going. Instead, look to offer services that are easier for you to market and perform, rather than ones that take a great deal of effort with little in return in a competitive market.
- The market your targeting – Not necessarily a sign of failure, but if your target market is too niche it might result in you either gaining little business or ending up too restricted. Smaller markets can result in moderate success, but in the long run you will probably look to target bigger markets to make further financial gains and to take your company forward. Likewise, offering something people are currently not paying for more often than not results in loss of money and effort, so make sure your not targeting a market that isn’t actually there.
- Lack of enjoyment – It can seem obvious, but your own personal enjoyment is crucial if you are going to stick to what you are building. Putting yourself through so much with little personal fulfilment will result in you only going so far before you lose interest altogether.
It can be difficult to come to terms with the fact that your business venture hasn’t quite worked out, and you could be forgiven for missing the signs of potential downfall. It’s invaluable to learn and watch out for the warning signs. Make sure you carefully think about your potential business to make sure you stay on track.