There are certain signs that indicate if a
business is going to fail abysmally.
These are
some of those signs.
A businesswoman
In today’s business environment, there are
many business ventures to invest in. For this
reason, it is important to be particular about
the one you choose invest in to avoid
devastating losses. Jumia shares 4 signs a
business venture is going nowhere.
Lack of Focus
This is especially the case with start-ups. If a
business venture is focused on one thing
this month, then next month the focus has
changed again to something else, and it’s
the same a month or two after that, it’s a
sign you need to take note of. Weak and
inconsistent focus is one of the number one
business killers, and any business without a
focus or with one that keeps changing or
expanding is a venture you need to careful
with.
All Income Comes From a Handful of
Customers
The Pareto principle says that 80 percent of
your sales will come from 20 percent of your
customers, that is 80% of the results stems
from 20% of the input. Therefore, if you find
that with a business venture the number is
less, then you have to start to find ways to
increase this number through actions like
marketing and networking. This will help to
enhance the sustainability of the business.
Little or No Excitement among Early Users
Especially for a business ventures that is
service or product centered, it is important
for early users of the product or service to
return again and again. If new set of users
keep coming in without you being able to
sustain their continued patronage then it’s a
sign you need to be concerned about. Your
service or product should be able to create
that buzz or effect to sustain the patronage
of early users to help validate your business
idea.
Plenty Visionaries but Not Enough Doers
Visionaries are great for conceiving a
potentially viable business idea, but it’s
important to work to bring these visions to
reality. For this you need to have doers on
your team, people that can work and
strategize to get things to done effectively
and efficiently to help bring your ideas to
life. Typically, there’s more programming
and technical work to be done within the
first 6 months of a business (when you’re
trying to lay the groundwork for the
business) than marketing or business
development work. After all, you can’t exactly
market a product or service that isn’t fully
functional, that’ll be putting the chicken
before the egg.
