Over 80% Of Start-ups Fail, Here Is How To Avoid Being Part Of This Club !

Dreaming about running a successful company is one thing but actually running one is another. Over 80% of start-ups fail and one of the reasons for this is that costs usually become more than income. Traditional sources of support for businesses like banks are as good as they are not there for start-ups because their conditions like collateral security are something that the later do not have. Don't be afraid you will not necessarily become part of this club here are some eye opening ideas that have worked for me so far and they can work for you.

1.Learn to sell.

As a start-up or small business you should generally have the mindset that nobody will ever give you capital so you must raise your own capital. Banks want collateral, empowerment loans have politics and entrepreneurship competitions have own qualification criteria that may not suit you. I once participated in an entrepreneurship competition but managed to get only a consolation prize because the sponsor's primary target was the girl child. I was a male then and Iam still now. It doesn't make sense to wait for funding to get started but you should make do with what is there and keep moving. If outside funding is to come it will find you already on your way.

Learning to sell your products or services is the best way the world over of doing this. The secret of selling you should know of as an entrepreneur is that value is a matter of belief. Whatever you sell as long as its not a corpse if people BELIEVE that there is value for money in it they BUY! If someone says your product is mediocre let him go he doesn't believe look for someone who believe. He is there some where you will find him if you diligently look for him and this is called prospecting. So the key skills you should master are Prospecting and Persuasion and these constitute successful selling.

2.Don't start by competing head-to-head with the big guys.

If you start by competing head-to-head with a competitor who happen to be a dominating industry player he will crush you. It is advised to enter the market strategically by finding one or two areas where the giant has weaknesses and beat him there - this is called niche marketing. Your success in your niche will motivate you and enable you to gather momentum so that you can begin to sell the products the big guy is dominating with by way of cross selling to your existing clients. Your existing clients will buy new products that you introduce to them irrespective of the fact that a dominant brand is offering similar products because of the strength of the trust your clients have in you due to past successful transactions. These people will become a core upon which you build with a view for eventual market dominance .

 3.Minimize your expenditure

If your monthly income is $300 but your monthly expenditure is $350 then this is as good as putting your money into a pocket with holes. The best financial management advice is that minimize your expenditure and maximize your income. I advise that you do what I call strategic acquisition. Purchasing a business suit its strategic acquisition because this kind of attire is proven the world over to contribute positively to the persuasive paradigm mentioned above. Eating lunch at a trendy fast food out let to impress your girl friend isn't strategic acquisition. If you really believe in your start-up you should learn to forgo somethings now for the sake of the future.