Why do start-ups fail most easily? How to avoid the failure of start-ups

According to statistics, most small and medium-sized enterprises closed down in the first three years after opening, and only a few small and medium-sized enterprises lived for three years. So why are start-ups easy to fail, and how to avoid the failure of start-ups?

Zheng Weiguo, founder of World Business Information Network, gave some advice to young people who are interested in starting a business, hoping to help everyone.

Generally speaking, start-ups have no brand, no accumulated reputation, and their business level is not high. Customers don't know whether the quality of products and services is good or not. So it is difficult to get the customer's order. Without orders, there is no source of sales revenue, and the expenses of start-ups are very large, such as office equipment, rent, wages and so on. On the one hand, there is no income, on the other hand, it costs a lot. Moreover, if entrepreneurs are not fully prepared and have poor ability, starting a business is easy to fail.

So how to avoid the closure of start-ups? I think making full preparations before starting a business can effectively avoid the failure of starting a business to a certain extent.

The first aspect: mental preparation.

Most young people start businesses in order to realize their ideals, and most of them are full of confidence and even arrogant, threatening: Bill? Gates, Li Ka-shing, Buffett, Ma Yun, Li Yanhong, Google, Baidu, Fortune 500, etc. Of course, Mr. Zheng also experienced this stage, but after experiencing the cruel reality, he got the real answer. In fact, there are too few such role models in the world, perhaps hundreds of thousands, and most of the entrepreneurial losers we ignore are not concerned. So before starting a business, you should have a good attitude, psychological preparation and risk awareness, because most people go bankrupt within three years of starting a business. Moreover, the goal of life is not only to start a business, but also to be a successful professional manager. Family and other aspects are very important.

The second aspect: the preparation of ability

Some people will say that this is too empty, but in fact, whether your final venture can be successful or not, and whether the enterprise develops well or not, the key place lies in the entrepreneur's ability, including: market development ability, enterprise management ability, selection and employment ability, financial management ability, etc. Because in the initial stage of small enterprises, there is no strength to recruit outstanding talents, so most things are handled by entrepreneurs and they start their own businesses. The company doesn't have a good reputation to get customers' orders, and it doesn't have a lot of money to do marketing and so on. All aspects of competitiveness are at a disadvantage in the same industry. If the entrepreneur's ability is not strong, then the development of this enterprise will be mysterious. Therefore, entrepreneurs should patiently accumulate and improve their abilities before starting a business, and then start a business when they have the ability and conditions, so that the success rate is higher. You might say bill? Gates, did you succeed in starting a business without graduating from college? I'm telling you, people have accumulated enough ability without graduating from college (they have long loved computer programs, and they are top experts without graduating from college), and you are not ready yet!

The third aspect: capital preparation.

This is actually a foundation and an important place to guard against risks. Generally speaking, how much capital should be prepared? Don't save all expenses such as registering a company, office equipment, renting a house, and decorating. Calculate clearly, then sum up how much it will cost, and then make a budget. After the company opens, it is expected that it will not generate any sales revenue for six months (this is normal in many newly opened companies). What is the approximate cost of the company? All these expenses add up and multiply by 1.5 times. In that case, the venture capital is basically the same.

The fourth aspect: choose a good entrepreneurial project.

Entrepreneurship projects are also very important. Some entrepreneurial projects are easy to make money, the industry has a good development prospect, and some industries have fierce competition. Eight out of ten enterprises are struggling on the profit and loss line. Therefore, it is also important for entrepreneurs to choose good entrepreneurial projects. General entrepreneurs can learn about the industry information in the industry information column of the World Business Information Network, and can also look for valuable projects in the column of the World Business Information Network, such as agency, joining, investment promotion, etc. In addition, the World Business Information Network is also looking for agents all over the country, which is also a good choice.

The fifth aspect: other aspects of preparation.

There are many other preparations, including finding a suitable office, registering an agency, accounting company, website construction, etc. For details, please refer to the related articles in the knowledge base column of World Business Information Network, and find the articles you want through keyword search.