Experience from people who have been there: Dismantling 10 reasons why starting a business will not make money
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[This article](https://www.facebook.com/jackylec/posts/10156462559209194?comment_id=10156462847709194&reply_comment_id=10156462862099194¬if_id =1532598340749032¬if_t=feed_comment_reply) Author Guan Dengyuan, co-founder of Delsveg Brunch Chain Franchise. Thank you for authorizing this site to reprint. Thank you hereby.
In the past, when I was starting my own business, I felt that I couldn’t make any money for a long time. Afterwards, I reviewed 10 reasons why starting a business will not make money:
Building confidence and taste
1. Not confident and afraid to charge
The first reason why you won’t make money by researching and entrepreneurship is actually lack of confidence! Not daring to charge or charging too low is a problem of insufficient recognition of self-pay and value.
Solution: You must know that your willingness to start a business is very different from others, and because you provide services, you must charge. Because you have invested your life and time in making products and researching in this process, don’t compete with the market on price or do low-margin things. What you should do is to recognize your own value, make your product better and better, and then try to present the value in the price. It’s not about making huge profits, but about making “deserved” profits. If you charge a high price and it cannot be sold, the first thing to review is whether your value proposition has not been properly disseminated to let consumers know, so they will feel that it is not worth it.
Be more confident, be brave enough to speak out about your efforts and efforts, be brave enough to charge fees, and believe that these are all “deserved”, so that you can survive.
2. No taste, too casual about many things
In the past few years of entrepreneurship, we have discovered that we are all working hard to create brand value step by step, but “taste” is closely related to brand presentation. If the entrepreneur himself does not have enough taste, then the value appeal will not come out. Therefore, there is no way to obtain good gross profit and brand value.
Solution: Allow yourself to be influenced by art and taste. We may not be educated in having taste because of our family background. However, when I studied the second generation of wealthy people, the biggest difference between myself and myself is that they are born with “taste”, because this is a problem of background, not the fault of themselves or their parents.
Don’t hate the rich, learn the taste of the rich, and let your heart become a rich person, only then can you truly become rich. It is not about being an arrogant rich person, but a person with “taste” and “wealth”. Only when you have taste can you make tasteful products and services, and then obtain better profits.
Positioning and personnel management challenges
3. No positioning, too blind to customer needs
After many years of entrepreneurship, I will always fall into a trap, that is, just find a way to produce what customers want? But the key point is that we forget whether these customers are the group we have targeted. In the end, we often make our work very complicated, and then we cannot even serve the original customers well.
Solution: First understand who you want to serve and what services you provide, set the rules of the game with customers, and have a position in business. You must clearly understand that the customers you are not supposed to serve are not forced to serve, and serve the customers you should meet according to your positioning.
Be brave enough to refuse unreasonable demands from customers. Buying and selling is based on an agreement between the two parties. Do not blindly allow customers to make excessive demands, because customer demands may sometimes destroy your arrangements, cause your labor efficiency to decrease, production to become complicated, and the prices charged may not be good.
Confirm your positioning and serve the customers you should serve well.
4. Imperial relatives caused management difficulties and lack of management
We all know that the most difficult thing about starting a business is dealing with people, but what is more difficult than dealing with people are the people around you, or relatives and friends. Many people start a business because they can’t find anyone or want to find someone they trust, so they look for people they know, either relatives or friends. These are relatives of the royal family and are difficult to manage or even impossible to manage. This will cause many “people” problems in business besides “things”. When faced with such people’s problems, they dare not deal with them because of the original relationship, so business performance cannot be improved.
Solution: These people only put themselves first instead of the company. They don’t care about your business experience. Why do you care about them? Be brave and cut them off! Don’t keep the wrong people in the company, as that will only disappoint the employees who are willing to pay for you.
To be honest, you are just afraid that cutting him off will damage the relationship, but as mentioned above, if he doesn’t think he has a problem and is unwilling to be managed and improved, then why keep this relationship alive?
This may be a bit tough to say, but from my experience it is really difficult for the royal family to communicate. It would be better for both parties if they cut him off. Because you also have to live, and he can’t forgive you and won’t let you live. Why do you care so much?
Of course, you can communicate first. If your communication skills and position hold up, you can sometimes show some mercy and let him leave the scene, but if it really doesn’t work, don’t show mercy, just cut him off! Think about your employees!
Digital Thinking and Benefit Distribution
5. No number concept and don’t care about the target number
Many people start a business without making reports. The goal they set is just to write down a number at the beginning of the month. In this way, they have no way of understanding the status of the company or store. How can it be possible to make money? Some people even mix public accounts with private accounts, and then do not keep accounts or manage them. Only when they have to pay for goods do they find out that they have no money. It is strange that they can make money in this way.
Solution: A good operator looks at the numbers almost every day. As for how far behind this month’s goal is, he should formulate an execution strategy for this month in the previous month, and then check whether it is within the progress every day. If the progress is behind the goal, he must formulate a new strategy to catch up with the goal quickly, so that it is possible to achieve the goal and make money.
Daily report records must clearly record income and expenses, and then each month you must understand what the income, costs, gross profits, and expenses are, and whether they comply with the percentages. If they do not comply, you must find out the reasons and improve them next month, so that you can make money.
All the company makes is money from management. Without management, there is no way to make money.
6. Put personal interests before company interests
Whether running a small company or a large company, many operators will put their personal interests before the company’s interests and do things that harm the company. Don’t think it doesn’t matter if the company belongs to you. In fact, all employees can see it. Whether your heart is selfish or for the company, everyone can see it! This often affects your leadership authority. When the company makes a profit, you also make a profit, but when you selfishly make a profit, the company may not necessarily make a profit, and problems often arise.
Solution: Put the interests of the company before the individual, achieve a “super-ego” state, and put the overall situation first and the individual first whenever problems arise. Only in this way can people below feel that the leader is dedicated to the company. Because the good of the company is good for all, not just for oneself.
Team communication and time management
7. Emotional team interaction patterns
The most important thing in a work environment is the “atmosphere.” A good company requires teamwork, but emotions will definitely destroy the company environment. In particular, operators suffer from the Big Head Syndrome. I have experienced it myself, because this creates a poor working atmosphere, high employee turnover rates, and an unstable team, making it impossible to make money.
Solution: Leaders must have the determination to solve the problem of excessive emotions. When encountering unsatisfactory work at the workplace, first “leave the scene” or develop the habit of “writing down” the problems you see first. Writing down can help ease your emotions. Wait until you find a good time, then think about how to interview the person involved, talk about the things written down clearly, and don’t deal with things emotionally. Only by managing your emotions well before communicating is the real way to solve the problem.
Furthermore, understanding the reasons for the parties’ problems and listening attentively will help solve the company’s system problems.
8. Lack of ability to plan time and plans
The only way to make money by starting a business is to maximize your human efficiency. However, whether the entrepreneur himself has the ability to manage time and plan well will affect whether he can maximize his “human efficiency”.
Starting a business always makes people feel busy, because they have to deal with many things at the same time and sometimes it can be very frustrating. However, they often find that the efficiency is very poor or the energy is consumed very quickly, which means they are “busy”.
Solution: Write down the things you think about first, and then schedule and plan. Before executing the plan, classify the same things first. If you are an operator, you have to think about “What must I do” and “What must I do?” Assigning things to subordinates that you do not necessarily have to do yourself is partly to allow subordinates to practice their abilities, and partly to allow yourself to do the “most important” things, so that you can maximize your human effectiveness.
The ability to manage subordinates usually comes from being able to manage yourself well, so that you can teach your subordinates how to manage yourself, so that the efficiency of the entire team will be improved.
If you find that your subordinates are not effective, there must be something wrong with the leader himself.
9. Poor internal communication and high communication costs
When we start a business, we often only see the actual costs paid, but forget the “hidden” costs. Communication is definitely a high “hidden cost” because poor communication will lead to doing the wrong thing or redoing it, or the work will be ineffective. Sometimes, there will be conflicts between departments and internal friction, which is very costly and cannot be ignored.
Solution: Leaders should declare to the team that all departmental communications are for the company’s advancement and growth. They should not communicate with too many personal emotions, but must empathize with each other. If there is a problem in departmental coordination, the supervisor should coordinate to come up with consensus standards acceptable to both departments to avoid being too emotional the next time there is a communication problem.
If it is a meeting, topics must be collected before the meeting. The moderator must control the speech not to deviate from the topic, and then lead the meeting’s resolution. If a person in charge is needed, the person in charge must be designated and followed up. Only in this way can the development and progress of the matters discussed in the meeting be effectively controlled and communication costs and internal consumption reduced.
Execution determines success or failure
10. Insufficient execution power
The big reason why starting a business doesn’t make money is that you stand still and hesitate to move forward.
Today is a very competitive environment, so operators have to think about how to operate or improve existing problems every day, but they often fall into the dilemma of “thinking too much and doing too little” or “scare people to death if you say it, laugh to death if you do it.” Such a situation may be due to insufficient execution.
Another situation may be that you think too big and don’t know how to implement it, so you always talk about the general direction without detailed implementation steps.
Solution: All dreams and goals must be cut into “executable units”, that is, step by step from year, month, week, and day. Don’t just talk about what are you going to do this year? You should also ask yourself, what are your plans for next month?下周的计划是什么？ What’s the plan for tomorrow?
Plan your goals from the year, month, week, and day, and then use the “minimum executable unit” to help you execute it. Make an execution list every day and move forward step by step. Don’t just look into the distance and be unwilling to take that step. Only by implementing the daily plan step by step can goals and dreams be achieved.
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★ Photo Credit: Franck V.
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