Why businesses fail

Not getting successful in own work, Facing losses in enterprise, start up / self employment is quite frustrating and demotivating.

It is interesting to note that most of the business or own work suffer losses due to taken for granted or casual approach.

How to come out of fixed Income is best Income mindset

If one decides to opt for own work or any kind of business then it is important to appreciate that more the efforts more the chances of gain or profit.

One cannot afford the fixed income mindset of taking things carelessly since any self employment demands daily digging the well and drinking the water kind of approach on a regular basis.

Why success of business is difficult for some Individuals and others easily succeed

To answer this question rightly many will comment & say Its all a matter of destiny.

May be those who don’t succeed are having hard luck or alternatively it can be said that success is not destined through business for them they should have tried their hand at something safe some other employment opportunity.

This is not the complete answer to the cause of their failure but yes this can be safely considered as one aspect of their failure.

So to understand the logical reasons behind their debacle and failure to be more precise keep reading further.

The psychology behind success for some & failure for others

In Psychology the approach is to go by the logical route of identifying the personality types and then the Intelligence types for each set of occupations that one can effortlessly pursue.

The role of personality in business success

In case of business or enterprise the exact personality type that must exist as a core personality in an individual is Enterprising. Things don’t stop just by identifying the core personality there also must be a secondary personality according to different kind of career option which must also be present for ensuring success.

This supportive personality in case of those aiming to pursue business is social. Therefore in order to be successful in any entrepreneurship it is vital that these two personalities must be found in higher degrees in comparison to other personalities out of the six personality types basically used as a general criterion for any logical career advise.

The role of Intelligence in business success

Once we are able to narrow down on the personality types then as a next step there is a need to also identify an individuals intelligence type out of the seven intelligences that are commonly used as a basis for any career mapping and advising.

In case of business the Intelligence must be Interpersonal & intrapersonal which mean that the individual is comfortable meeting and communicating with lots of people and also simultaneously intrapersonal intelligence signifies that the individual has a strong affirmation of his own conscience / decisions in the sense that he has strong self analysis capabilities which help In maintaining the confidence that is needed in any business environment to keep trying till one gets successful.

The role of our circumstances in business success

Once we are able to work upon these two dimensions then we can move on to evaluate the circumstances of an individual and it becomes equally important to understand that the resources, family structure, physical aspects, health, responsibilities and many other factors also support in totality the decision to go for entrepreneurship in comparison to fixed income jobs .

The importance of undertaking proper intensive market research about which business to start

Post analyzing these important and basic fundamentals of career planning there is a need to research about the In & out of the market to find out what kind of business can be started so that there is at least a minimum hope of sailing through the initial period of struggle and then as one gets response the same can be further expanded by bringing in appropriate capital at the right stage and in right amount. Therefore It also becomes necessary to appreciate that both over capitalization and under capitalization may be taxing for the business and it may make things difficult if not properly balanced and calculated.

The budget estimation & affordability

Ahead of and further to above basic essentials one must also be clear about the budget for marketing, daily running cost, miscellaneous expenses, sundry losses etc. since in the initial days when there is low turnover it will be more important to first ensure that the funds for the bare minimum operational cost are available at least for the coming 365 days to ensure smooth running of the startup activity.

Backup funds for sustainability

One of the very important points that must be part of the strategy Is that there should be a one hundred percent arrangement of some alternate source of minimum income to sustain ones personal expenses including parental and other family responsibilities again for the initial one year period from the date of starting the enterprise.

The income being generated from the business activity should be treated as additional to what one has already managed in form of additional source of income at least in the incubating years of the business.

Control of expenses

Also caution must be exercised in limiting ones expenses to bare minimum on luxury and unwanted items in the business during the incubation period.

Role of counselling for taking business guidance

With proper planning, assessments and analysis of the project and taking professional counseling and guidance for starting a business it can be happily and confidently moved in the direction of success.