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Moving forward: How to overcome a business failure

THE failure to look for professional advice could melt down one ‘selfemployed business dream’. Many people nowadays, dream of setting up an alternative business to generate extra income.

This enables them to meet various endeavours, be it personal or family. Since people think differently, their understanding on what they believe differs as well. This for many of us sounds scary, but more terrifying for a business failure.

Many of us don’t appreciate until it is too late, to realise a good hedge against the risks of starting your own business is to begin working on building your business while you’re still employed with a full-time job that pays a regular salary and benefits.

If you are in a position to start your business, while you are still in employment, you will have the best of both worlds.

A steady, reliable source of earnings will give you much more self-confidence in testing the waters with a new business that has a high likelihood of failure in the first year.

Today’s focus is mainly on most important sources of business failure with likely explanations.

Looking at drivers behind success or failure, I will be putting you as potential candidate to go through on the major causes of business failures and how you can avoid them.

For any industrialist, beginning a new business venture has one major thing that return in the back of his/her mind. Even with profit as main agenda behind the mind, owning a business can be satisfying and at the same time very demanding, hectic and risky.

I always do advise my clients that running a business, small, medium or large is also not a child’s play. There are definite features that can cause business failure; nevertheless, lack of proper research for profitable market before attempting is one of the main causes of business failure. Your new start-up business can nose-dive regardless of your country’s ease of doing business.

There is no business that is not money making, but if your business is not positioned at a place that the product or service is looked for, it will not flourish or be cost-effective.

Likewise, no matter how zealous you are about an idea or a particular type of business, researching about the business to ascertain if such type of business will be profitable in your chosen location is very important.

In business world, full of rivalry and competition, price discovery and passion is a key for success in business, on the other hand, based on research passion cannot guarantee success.

If as a businessman, you are passionate about something but cannot monetize it, and yet you gamble into it, then you are more of what I can only term as a charity business that offers a service for no or minimal reward.

That’s why, it is relevant to do an in-depth market research and if possible consult before you venture into any business form, for instance selling tomato or setting up a corner ‘mangi’ shop to running of cafeteria.

Experience endorses that nobody desires a failed business. Hence the pride of every industrialist or businessperson is to see his/her business growing and making steady profit.

Some industrialists have started businesses but because of some certain aspects, the business turns out to be a failure after a short while, a typical scenario for SMEs.

Research indicates that no matter how knowledgeable you feel you are, once you want to start-up a new line of any business, it is pertinent that you seek expert advice.

Many might think seeking such advice is wastage of money, but trust me this will help you ascertain whether or not the business is profitable as you thought.

Many years of studying why business grows and fails indicates that most times, industrialists set up a business because they find others doing the business and profiting.

Those ventures could be, for instance, building recreational halls, setting up mini- supermarkets, pharmacy shops, hair salons, or even setting up restaurants and so forth.

Yes, such industrialist might be making money from the same business, but closely examination could find there might be a secret behind the success.

Top-secret could be locality, good customer service, knowing the right source to get raw materials, after sales follow-up etc.

Although it might be a centre for debate, it is good as you think to venture in any business to have an advisor that will always put you through to avoid silly mistakes.

One more gain of looking for professional consultant is that, you will be meeting people that have already done the business and they have made the mistakes and known the best exit way of doing it.

Research carry out in most major cities in Tanzania and how customers are preserved is an interesting subject. It is very important as entrepreneur you make and give your client care a priority.

Any successful industrialist will agree with me that business with good customer care develops. Worthy customer care brings return customer, and return customers bring referral customers.

Thus why, if you do not treat your customer well, they go to your competitors. Continuously ask your clients questions about the product/services and offer them some percentage when they give your product a review either positive or negative criticism.

If you are not close to your clients, or treat them like every other seller, they will only come when there is no other preference. Bad customer care in my opinion, in Tanzania has killed a lot of businesses.

This is the fact. Many entrepreneur after they have made a little of saving have gone into business or made a business choice for the reason that they see others doing it and think they can be prosperous in it if they try.

It is not enough to ‘copy and paste’ a business, it is all about how you initiate it. It is good you add your own indication.

In business copying without consultation leads to dead end. Lack of understanding is one of the grounds of business failure.

As an industrialist, if you consider yourself as inexperienced or your team is made up of beginners, then your business is as good as dead.

Experts will affirm that when starting a new business, it is opined you get the services of people experienced in that playing field. They can be your partners or your employee or both.

Get knowledgeable marketers and well-trained customer service personnel. In business world, being busy does not mean being productive. Sometimes it is the person’s fault because they only hear what they want to hear or they think they know better. Bottom line in business is that building an effective business is not a 60-yard race but a marathon.

If you don’t want to die in poverty or see your business collapse, then you must be industrious. When trying to examine challenges entrepreneur face when starting and running business, reminds of renowned British Prime Minister, Winston Churchill who said “if you are going through the hell, keep on going”.

My interpretation in business world industrialist shouldn’t expect what they don’t work for.

There are many aspects that make business fail, but through analysis of many businesses, if you do not persevere, find out, research, fail and try and try again, you might not be successful in business.

Author: Dr Hilderbrand Shayo

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