Despite the fact that economy is highly competitive and gradually failing, still thousands of new businesses step into the market across the globe. None of these businesses comes into the market with the objective of not growing or being kicked out of the market, however, the sad fact is that very few of the thousands of businesses survive the heat of market and make their way towards growth.
Blaming the bad economy and unfavorable market conditions is the one statement that all of the failing or failed businesses will have in common. The factor which most of the failed businesses would overlook is the similar mistakes they committed during their run. There is one big mistake addressed by most unsuccessful entrepreneurs, which most of the startup businesses commit. The lines below give that particular mistake and four steps that must be taken to avoid it.
The Mistake of Not Prioritizing
The biggest mistake that startup businesses make and which eventually leads to their failure is the lack of prioritizing or not prioritizing at all. Startup businesses are usually run by a single owner with a stringent budget and handful resources, thus management of all such constraints leads to losing focus of the true goal and the bigger picture. All the mismanagement leads to the unimportant tasks taking the place of important tasks, like at the time of sales business might be emphasizing on cutting cost, or when it might be the time of cutting costs, the business might have been making the expenditure. All this lack of prioritizing is the biggest mistake that the startup businesses commit which causes their eventual demise.
Avoiding The Mistake
If prioritizing was as easy as simply sitting down and doing it, there would be no need of all the debate and the businesses might not fail. Rather, it is a difficult thing to do and requires help from successful entrepreneurs prioritize business goals and objectives. The lines below give the best ways of prioritizing to avoid startup business failure.
1. Identify Important Tasks:
The process of prioritizing starts with identification of important tasks. The mistake committed by businesses is that they consider all the tasks of equal importance, thus give the same priority to all of them, without realizing the facts that some tasks might not be worthy of being important.
2. List Down The Most Important Tasks:
Once the important tasks have been identified, the next task for a business is to shortlist the Most Important tasks from the list. A business needs to shortlist the tasks on the basis of their importance in the coming month or quarter. For instance, in one month, marketing would be important for the business, thus it would rank high in the priority list compared to inventory management or auditing. Therefore, out of the important tasks it is important to shortlist the most important ones.
Once the list of most important tasks is in front of the business, the next important thing it needs to do is to visualize the route it is going to take to complete those tasks. In exquisite terms, this visualization can be called ‘strategy formulation’. A business needs to have clear vision of the paths it is going to adapt and the processes it will have to go through to complete the most important tasks with effectiveness and efficiency. This is the reason why most have detailed information on making a sound and effective strategy. Therefore, a business must take sufficient time formulating a strategy to complete the important tasks.
4. Take The Leap:
A pound of practical is important than a ton of theory. Therefore, once the business has formulated the strategy, it needs no longer fret on it and be skeptical, rather the business needs to take the leap and execute the strategy. Most of the businesses fail at this point because they become skeptical of their strategy and remain in a state of dilemma about the execution of the strategy. Thus, by taking the leap business ensures that the strategy is put into action and with constant management; the business can ensure effective and efficient survival and growth.
Now it’s Your Turn!
Have you also been in a state where your startup business was on the verge of failure? What did you do to bring it back from that point? What is the most important reason of startup business failure to you? How do you prioritize your business tasks? Please leave your feedback in the comments section and I look forward to reading them!