When a person is launching their own company or business, failure is not a thing that would be brimming in their mind. Greg Van Wyk suggests that in order to keep your mind sharp against the warning signs that may indicate the collapse of your business. The first five years of the business can be the most crucial ones, the ones that require the most patience and the most struggle. You need to keep yourself boosted through these years so that you can actually have a time when your business will be successful.
Poor Management of The Cash Flow – Greg Van Wyk
You may have heard this phrase many times that states that cash is king. However, this is true that if you manage the cash flow in a bad way, it can lead to the collapse of your business – and that too, in no time. Even if your business is giving you loads of profit, and if you are not managing them in a good way, it will generally lead to a crisis in the cash flow. This is caused by many factors like the inefficient management of the debtors, bad debt, high levels of stocks and, of course, late invoicing. If the financing is done in an inadequate manner, or if you select the wrong methods of funding, it can lead to problems in the business. This can lead your business to a loss, and then it can even cause a total failure in your business. If you do not have proper access to adequate growth capital, your business can be doomed as it can not find the ways to grow.
The Inability To Grasp Your Customers And Market – Greg Van Wyk
If you are not able to properly comprehend the potential of the market and your customers, your business can easily fail. When you think about how you will be able to achieve success, the answer must lie in the understanding of your customers and the market that you are targeting. You need to do a quick survey and check the response of people. Are they willing to spend a certain amount on this product or not. Can your product or services be a hit in the market, or will it be rendered as a total failure? These are the things that should be kept in mind so that you can make a decision based on them. Make sure that you understand your market and customers in a good way so that you can reap the benefits of it.
Failure To Express Your Point And Communicate – Greg Van Wyk
You should know your services and products in and out. You must be clear in expressing what the service or product is – this will help others to understand what your business truly is. You can express your opinions and points – this can help your customers understand your business in a better way.
Takeaway
According to Greg Van Wyk, these are the three potential causes of failure of a business. We should avoid them in order to make your business succeed.