Dare to get out of a safe world, and enter into a new world full of uncertainty. However, by knowing the various types Business Effects and cases that are involved in business risks, business risks that may arise can be minimized and even overcome.
To start a business is not easy. It takes courage and a mature business strategy. All business opportunities do have an effect, although the level of effect varies.
There are businesses that are very dangerous, there are also those with small risks, but that does not mean that these risks cannot be overcome and minimized.
Before you know the steps to overcome business effects.
Do you know the alibi that triggers an industry to go bankrupt?
Here, Babastudio wants to present 5 alibis that make 8 out of 10 industries face bankruptcy, as reported by the Forbes web.
1. In-Depth Contact Discussion with Customers is not Established
An entrepreneur sees a potential opportunity in the market and has a new idea for a product or service, that is a very extraordinary thing.
However… there are so many industries that forget the customers they already have, because they focus on finding new customers.
For babastudio, this is a bad step or habit that an entrepreneur should never try. By mastering the customer in depth can influence the success of the industry.
Establish communication with customers, find out what customers need, help customers with our products or services?
This matter is very meaningful for you to know.
In 1999, there were 4 smart people who wrote a novel “The Cluetrain Manifesto”. For Babastudio, this novel is a text that is difficult to digest, but BabaStudio gets one meaningful sentence from there, namely “The market is a conversation”.
So discussion is key.
Using 140 word characters to convey a message is pointless.
But with real discussions with real customers, whether live chat or not, it is the best method.
Nathan Furr and Paul Ahlstrom, the team from the authors of the novel “Nail It, Then Scale It” also said “which would you choose?”
Dialogue with current customers and you can identify the problem, or
Dialogue with customers after a decrease in revenue, and too late to recognize mistakes?
So in conclusion, you can run out of industry income because there is no in-depth communication with customers.
2. There is no real differentiation in the market
entrepreneur. com provides a story entitled “Why Everyone Must and Want to Be an Entrepreneur”.
Let’s just assume, what is told in the novel will intertwine. Wouldn’t our competitors, who previously had 5,000 competitors, now become 50,000 competitors because everyone is involved in becoming entrepreneurs?
Meaning, there will be a lot of noise and chaos for those who build a business without having certain comparisons and uniqueness. Indirectly, this is killing the business over time.
It doesn’t matter how long the industry has been around, how many customers the industry has, and how well the industry has managed finances for months or even years to survive in business competition.
Every thing that happened they asked themselves, does this exist? and what will happen? Are we able to experience all of this?
First, you must agree that this matter must be overcome.
Entrepreneurs who take this step lightly will end up in trouble.
Take a piece of paper or stick notes, then write down what you think about your industry, make a brilliant idea, look for comparisons and compare your industry with other industries.
3. Failure to Communicate the Value Proposition in a Clear, Short and Engaging Method
Next, there is an effect that can weaken communication, namely “failure to speak”.
Many entrepreneurs work hard to create a point of differentiation, after which they “blow it up”, because they feel they cannot communicate their message in a clear, concise, and engaging way.
Babastudio saw many entrepreneurs bleeding to death (bankrupt) because of their failure to speak up.
Learn the speaking method even better,
Babastudio reminds me, refer to point # 1 above.
Learn, how should a businessman catch a chat with customers, so you will know how to talk to each customer.
For example, if they speak Russian, then please stop trying to speak French to them. Listen to the words they use and then use them back. There are 3 points over this matter.
Be clear (don’t your customers recognize who you are and what value you bring to them?)
Be concise (are you clear enough without the need for continuous dialogue?)
Be firm (live through what you have said to convince customers that you have taken the action they want)
4. Mistakes in Leadership
Just take a look at this time in the media, with people who have extraordinary talent but they are self-sabotaging, like Lance Armstrong, Mike Tyson or Aaron Hernandez, all of whom went aground due to bad decisions.
Currently, newcomer entrepreneurs or startups that are down or down may no longer have the opportunity to be able to have their names appear in business news tomorrow or who knows when.
The alibi of their failure is sometimes due to the same alibi, that is, there is no soul leader. Who has a position in decision making. This can happen because the decisions taken are not good due to weak leadership skills.
Realize from this moment that the industry is a kind of toddler that you have. And you are the father, the owner of the industry who should be the leader.
If you feel a lack of skills to have strong relationships with other people. So you have to be able to get the skills needed to be able to do it.
Successful entrepreneurs spend time with individual development.
Don’t expect to get investors who provide capital without examining the personality of the founder and the team involved in it.
It’s still a question mark for you, how many business owners really have good ideas accompanied by the skills to execute?
5. Inability to Create a Profitable and Proven Business Model
In conclusion, this is the path of the conclusion. You fall short of hitting exactly the right product or market match where the money is coming from, and you’re stuck at it.
A startup must move quickly.
Move fast without spending a lot of money to try and find out what the secrets of your competitors are. Using tools and methodologies such as Minimum Viable Product, Easy Marketing Methods and Experimentation is very important.
A perfect example of this comes from Tony Hsieh’s novel Delivering Happiness, in which he describes Zappos’ early childhood.
He and his co-founders didn’t even believe that in the late 90s people would have the courage to order shoes over the Internet.
So they do a quick test: go to a website with a photo of the shoe taken from the manufacturer’s website, then some time later someone takes the action of buying to press the buy button on that ad.
Order arrived. One of them ran to a local shoe store, bought the requested shoe at one of the retail stores, and then rushed back to send the order over. Did they run out of money on every pair of shoes shipped? Yes they do.
But do they quickly confirm, do they have a potential business idea? Yes again. All with zero inventory or the ability to produce.
Think and move fast or run fast if you feel like you’re going to run aground. Most importantly, make a business model that suits your business.
It turns out that from the 5 alibis above, the cause of 8 out of 10 of these industries going bankrupt is the result of a lack of communication and weak leadership.
However, you cannot use the 5 reasons above as a reference as a case for business effects.
There are several business risks that you should also know and dig deeper into.
Which could be one of the effects that babastudio wants to explain below, can happen to your business.