why businesses fail
“1 in 3 businesses fail so therefore there is no point in starting one”
This statement could be false because although some businesses fail, some businesses obviously succeed and succeed well for example McDonalds, Ben and Jerry’s, Tropicana etc. If you are passionate and have confidence in your business then it is more likely to succeed than someone who can’t be bothered due to effort and belief. Also if you have a very good, detailed business plan that you can stick to, it will help keep you on track and know what you’re doing. It will also give you more chance of investment even if your business idea isn’t great but the business plan is sophisticated, it makes you look like you know what you’re doing. Your business is more likely to fail if you don’t find a gap in the market and don’t have a USP for example starting a business in a big industry where there are already lots of successful businesses in it; there is no point because you are less likely to get customers.
There are many ways to help minimize risk in a business such as being aware of how much money is coming into the business. You should know how much turnover you are getting each month and how much money you need to keep the business flowing. Without money a business will fail. It is important to get your business insured against specific risks because some crucial parts of a business are not insured. Also you should make sure that if your business changes, your insurance should to and you should speak to your insurance provider to let them know. You should try to keep key people in the business e.g. staff because they could be the passionate ones in the business and could be the ones that keep it going. Although in a business it is important to take risks you should make sure they are safe otherwise it could be the failure.