Starting a business in Kenya is a critical dilemma. Most people find themselves in a very critical condition when the business starts to fail. Some even opt to invest in other businesses. When your business starts to fail you should ask yourself why the business is failing.
The following are the common reasons why a business may fail and become bankrupt.
1. Market skills.
If you are not able to identify your market and customers then it may lead to that business failing. You should perfectly know your market and try to find out what your customers are willing to spend in your business so that you set your best foot out.
2. Profitable investment
You might have the capital to start a very profitable business but lack knowledge on which business to invest in, finally you may end up investing in a non-profitable business. To avoid this from happening you should do a research and realize the business with high profits. This is the reason why most businesses fail.
3. Marketing skills.
Most people buy the thing from places they have heard of. Once you establish your own business you should start marketing it to people so that it becomes popular. You may also offer discount and give your customers small gifts to create a good image to others. By doing this your business will be a success.
Understanding your customers is a very key thing in every successful business. Know how to answer your customer without losing them. There are times to say no, and this should be known to them. Never accept friendship in business related issues. This will bring down all the plans you have for your business.
5. Proper management.
In every successful business there is a good manager behind it. If you luck good management skills, it is advisable to employ one. A good manager know when the business is improving and when failing, Incas the business is failing he knows the actions to take I'm in order dealing with the situation. Good record keeping and balance sheet record for each month should be kept for reference.
6. Working plan.
If you are planing to fail then it's good to have no plan for your business. You should know the state of your work and know where it is heading to. A plan is a very important thing in every business With large profits. Also planing before you invest is always the best choice to make.
7. Savings strategy.
In every successful business you have to know in which way you will save your profits. Know which money to save and to invest. Saving all your money will not make you successful but investing money will make you grow. If you have no saving strategy, then your business is likely to fail.
If you are poor in saving you can always find a cheap accountant who will do all that for you.
Having known all this it's wise for you to consider the six things. Like and share this, don't forget to leave a comment for me!
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