There are some basic and sometimes costly errors that entrepreneurs commit which may lead to poor performance and even failures involving the loss of lifetime investments. This includes:
Location: Whereas location is not particularly critical to success or otherwise for some enterprises, some however depend on correct point location to succeed, starting up an enterprise is one thing, and then getting the business situated in the right location is another. The point location of any business is very essential to the success or failure of any business. It is usually the first factor to put into play when starting up an enterprise.
Your Business Plan: Many entrepreneurs start their businesses without putting down the business concept in a formal way. They plunge with little or no probing. This in many instances could be the beginning of poor performance. Some entrepreneurs dream the business; they even have a great vision. But quite often, dreams are highly biased, sometimes sentimental, but many- a- times based on wishful thinking. It is therefore better to put you’re your thoughts down and then call on an expert to review it with you. Another part of business plan is the monetary side which deals with the profitability (the viability) arsitek medan terbaik. You need the input of an expert in this regard so that the profitability of the business could be enhanced. The solutions to such issue are then explored using the advice of the specialist and of course your personal knowledge of the business. Consider the concept of a desire by an individual to put up a storey or even a multistory edifice. To be successful, the plan should better be handled by planners- architects and structural engineers; otherwise the entire structure could crumble mid-way during construction or at the finishing point. The analog can be carried to a new business or a business in expansion or the one moving to a new product-meaning diversification.
Complacency: Complacency in the business is a sure way to eventual drop in performance. In truth, some entrepreneurs are very smart; also mother luck could be on their side. Such an individual could have early breakthrough in his/her enterprise. Then he smiles to the bank now and then. It is quite common that such an entrepreneur believe he is indeed a genius and he may often have the notion that permanent financial security is his lot. Characteristically, he may become a high-cost individual and the living could be expensive involving aids. Quite often however, just a little (unexpected) difficulty could destabilize the company and a business crash could even occur. Accept the reality that nothing is totally permanent; live moderately and invest the surplus funds generated so that the company would have something to fall back on in the case of any disturbance in the pattern of business
Cost Control: An enterprise is like a coin having two sides. One side is the revenue or sales while the other is the costs. Many entrepreneurs do not pay attention to the cost side (cost of operation, salaries, administrative overheads and interest on borrowed fund); rather as long as income is good everything is presumed ok. Because of such believe the company may be performing badly without the knowledge of the entrepreneur. The initial point to appreciate is that costs have the tendency to overshoot expectations or plans.
Each cost head should therefore be closely watch and perpetually too. The best way to achieve this is to engage in skilled professional to keep your records, produce periodic accounts and advise you accordingly. By studying the financials you will know how well you are controlling your cost. Many entrepreneurs do not pay attention to cost control and may continue to over-commit the company sometimes through avoidable credits and in no time he could get into serious debt. An indebted entrepreneur in most instances would no longer be able to focus and direct the required attention to the business.