Entrepreneurs are always looking for ways to start new businesses to make a profit. They are the first to see opportunities in new products and enterprises. Many people may be aware of opportunities, but they may not be aware that three in ten new businesses fail in the first two years. By the end of five years, nearly half have failed.
Many authors have compiled lists of reasons for business failures. Among the reasons are poor management, competition, undercapitalization, location and many other reasons that may be prevented if they are recognized in time. Unfortunately, many entrepreneurs may be too involved in the business to see new opportunities or recognize the danger signs of business failures.
Since poor management is the major cause of business failure, entrepreneurs could use guidance in planning and computing the return on investments, cash flows and breakeven theory. If the business depends on sales of inventories, the entrepreneur should know how to manage inventories to keep them as low as possible without losing sales.
In addition, the entrepreneur should be familiar with the latest technology and how to use supply chain management to maintain efficiency in his business. He should be reasonably familiar with every phase of the business so that financial statements provide him with a clear understanding of the direction the business is going.
Perhaps Entrepreneurs Need Coaches
Since it is difficult to know all of the best investments available, the entrepreneur should consider a business coach. Business coaches are trained professionals who help entrepreneurs plan strategies and techniques to increase profits. Although they are not business experts, they are more than consultants. They can act as sounding boards, and make suggestions for the best methods of advertising strategies.
One advantage of having a coach is getting a new perspective. They are an extra set of eyes to recognize new opportunities or see danger signs. In some cases, business coaches inspire entrepreneurs to do greater things. However, the results always depend on the coach and the entrepreneur. The good coach can give invaluable advice and guidance about your new business investment.
Iron sharpens iron, and entrepreneurs sharpen other entrepreneurs. The wisest businessmen know there is a lot to learn from other businessmen. Looking into getting a coach can be the key to your next big breakout – finding your passion, discovering a new niche that you fit well into, even finding a completely new career path are all things that an outside perspective from a business coach can help out with.
How to Start Looking
The student is only as good as the teacher can mold them, in many cases. You’re going to need a teacher that fits you, and your entrepreneurship style, with expertise in your areas of interest. Be prepared to pay a price for this type of management as well; skill building, advice, career coaching, and emotional support doesn’t always come cheap. It helps to start working towards your goal now, too. If you’re interested in real estate, for instance, go ahead and start working for as many credentials and certifications while on the hunt for the right entrepreneur coach. If you’re interested in law and court, it’s a good idea to look into legal transcription training in the meantime. Make yourself as sell-able as possible, by building yourself up on paper and in person.
Article contributed by Jenna Smith