The main factors that make a business unprofitable

Published by Uday Jethva on

Hello! Today I would like to talk about what factors exist that business unprofitable can adversely affect any business. In early 2012, as now in principle, there was a heated discussion of where to invest your money. In what areas and industries. I myself have given forecasts of where good money will turn, but as an investor and rentier, I am always interested in something else most of all. What can prevent business development in the coming year. What factors, what situations can negatively affect the development of a particular direction in business.

As a rule, the success of any business depends on its preparation and proper organization. Therefore, in any business, this is the key point. You should not neglect this factor and treat it superficially. Unfortunately, I often see the opposite picture. In my opinion, preparation and proper organization is a discussion, clarification of all the key points before starting a business directly. It may include: choosing a niche, planning tactics and strategies for the future business, clarifying legal aspects, drawing up a business plan, etc.

The next factor is the non-professional team. In the course of his work, any entrepreneur cooperates with other professionals. The success of the whole business often depends on how competent and experienced his team is in certain issues, subtleties and various little things. For example, you can take this situation, if a person has been sewing clothes all his life, then it will not be difficult for him to open his own clothing repair shop, if before that he worked for his employer. However, if this same person decides to engage in agriculture, then I assure you 99% that he will not succeed and he, after the first year of work, will go into a minus, abandoning this idea. I can tell hundreds of such examples. However, there are certainly exceptions to this rule, but this is very rare.

Another factor that makes a business unprofitable is loans for business development. Today it is fashionable to take loans and allow to live in debt not only to yourself, but also to your business. In turn, this often leads to death and ultimately the closure of a legal entity. From the side of a businessman, everything looks very tempting. But I assure you that this is far from the case. Do not fool your brain with pink illusions. You can use credit funds only if you are sure that you will cover the monthly installments on the loan, but you should not just be sure, but confirm this with your income.

Another important factor is competition. A lot of businessmen are trying to get a tidbit and get into those niches where there is already a lot of competition without them. It follows that even with a good product, it is unlikely that you will be able to get a big jackpot and make a lot of money. In other words, the game isn’t worth the trouble. The best thing is to focus your attention on those niches where there is no such tough struggle for a place in the sun and earn your millions there.

In this article, I have tried to cite universal factors that make a business unprofitable regardless of its field of activity. It’s not worth talking about clients and their importance for any business at all, since this is what you need to start building and developing any business with. Without clients, without consumers of the service, there will be no business at all, so this factor can qualify for inclusion in this group, if only it is considered from the side of clients who contribute to the destruction of your business and give it a negative reputation.

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