The failure rate of businesses within their first five years of existence can be up to 50 percent. Entrepreneurs face a tough road, especially those who are experiencing the joy of business ownership for the first time. Many entrepreneurs learn from their mistakes and do better the second time. Why waste time, money, and resources when an Internet business consultant can help prevent the most common pitfalls?
According to experts, there are several common reasons why most businesses fail. Topping the list is the failure to have a written business plan. Committing a plan for the venture to writing is the best way to ensure that the entrepreneur can take the ideas to the implementation phase. Ideas that seem great in theory may not form an excellent business, making it worthwhile to conduct market research.
Consultants find themselves dealing with “idea” people on a regular basis. A million-dollar idea is not worth one penny unless it is executed. To be successful in their ventures, entrepreneurs must be willing to take risks and make difficult decisions. They also must have a robust revenue model, even if the venture is a non-profit.
If there is no competition, this may indicate that there is no market for the product or service. Too much competition can also signal problems. If a Google search yields ten or more competitors, it may be smart to rethink the business concept. Even the major players may come out of the woodwork in the future, thrusting the new venture into oblivion. When competition is adequate, protective measures like non-compete agreements, copyrights, and trademarks should be used.
Investors are more interested in turning over their money to someone with experience. The entrepreneur should be experienced in the business sector and be familiar with running a startup. New entrepreneurs should look for an experienced partner. This will make it easier to obtain cash funding and provide access to industry contacts and marketing channels. Entrepreneurs should not make their new venture a full-time gig until it is creating a steady revenue stream.
Marketing should be a top priority for any new business. Innovative marketing that makes use of different media in an effective way draws customers. Entrepreneurs should stick with marketing campaigns and avoid becoming discouraged by setbacks, which are bound to come at certain points. An Internet business consultant can make the startup process much easier for entrepreneurs in any industry.