Friday 21 December 2012

Common pitfalls to avoid

Research has indicated that there are some common reasons for businesses failing. It is important that you are aware of the common reasons for business failure, which primarily impacts on your cash position, so you can plan to avoid these.

  • Not enough capital
  • Growing too fast
  • Hiring the wrong people
  • Lack of experience
  • Too few customers
  • Setting prices too low
  • Poor financial controls
  • Bad debts
  • Poor control of your overheads
  • Competition
  • Poor communication with staff 
  • Health issues of the key people
  • Bad management & Poor supervision
  • Poor communication with suppliers
  • Poor communication with customers
  • Bad luck
  • Poor planning
We cover these areas in more detail on our dvd. www.startyourownbusinessdvd.co.uk

Friday 14 December 2012

Market research

The most common reply to the question of market research is that my friends and family think it is a good idea. Of course they will, as they want to support you and take a true friend to tell you 'don't do it'.
Effective market research is commonly broken down to Primary and secondary research. So your own specific research could include
  • Questionnaires
  • Interviews
  • Focus groups
  • Product tests
  • Test marketing
  • Published information and statistics
  • Observation
  • Mystery shopping

You should also undertake your own competition analysis to see how your competitors approach the market with their product or service. You may have a different approach, but your competitors have started their business, so we suggest you will not have to re-invent the wheel after reviewing your observations.