It is important to have a dream and work hard for it. But the dream should be realistic and feasible
1. Market Misconception
- Doing business was much easier, when the market size was small, there were fewer competitors and legal frameworks.
- Introduction of series goverment regulations are the first step towards professionalization of the upcoming era
Having a “Dream” project that is not feasible
- It is important to have a dream and work hard for it. But the dream should be realistic and feasible
- Pursuing a dream without proper research can lead to huge financial losses
Mistakes made in selection of Partners
- Some of the partners may have difference in vision than yours, resulting in a conflict.
- You expect all your partners to be involved while they wish to be as ‘silent partners’.
Investment mistakes
- Partners expect future financial gains while only taking into consideration minimal factors like direct costs and profit margins but many a times, indirect expenses, cash flows and other statutory deductions may also hit the business
- Undecided or non-communicated returns and equity structure result in conflicts among the promoters
Wrong Management
- Most of the businesses make the mistake of appointing their relatives or friends as managers or working partner regardless of their skill and professional qualifications.
- While appointing a working partner or manager, many are focused on their sales skills rather than the leadership skills.
These are few examples which might lead to the failure of a business. There are many other factors like wrong positioning, service quality, value chain issues, brand issues, etc. But a promoter can avoid such kinds of risks to an extent with detailed studies and guidance from experts.
