7 steps in starting a business, most entrepreneurs fail at 3

7 steps in starting a business, most entrepreneurs fail at 3

Starting a business is a dream for many young people, especially with the incentives and loans made available to youths and women by the government.

However, studies by the US bureau of labour statistics show that only 66 percent of new businesses will survive their first two years.

This is mostly because new entrants face problems they had not anticipated or their funding runs out before they are able to sustain themselves.

In an article published on inc.com, an online business magazine, Samuel Edwards outlined seven stages that define an entrepreneur’s journey in creating and owning a business, including:

  1. Idea

In this stage an entrepreneur comes up with a unique business idea. This stage also includes preparing a business plan, taking note of the competition and planning on how to execute your brilliant plan.

  1. The launch

This plan includes implementing your idea in stage 1.

Here an entrepreneur sets up an office or equipment needed in implementation. The challenges found in this stage include facing problems you didn’t know existed or you didn’t anticipate you would face.

 

At this stage the business owner has begun getting a few orders, but still cannot sustain him/herself thus they’re still using seed capital.

  1. Survival

At this stage the business is constantly changing as it tries to establish itself, and its structure is very volatile.

This is also where the funding begins to run out, however the money coming in from clients is still not enough to sustain the business.

This is the point where most businesses fail, it is important to do all you can to get off this stage.

  1. Floating steadily

Here a business owner will breathe a sigh of relief. The business is now floating along and it has eventually secured enough clients to pay their way through the survival stage. Now the business can sustain itself and one can predict profits or losses.

However, this stage can be a trap as a business could stay on this stage forever, unless something is done.

  1. Growth

If you’re lucky enough to get to this point, you business is going beyond the floating steady stage and is now growing and expanding.

The growth of your business will depend on customer retention and marketing. Engage your sales team to ensure more new customers and good customer retention.

  1. Evolution

As your business grows, it will change drastically and branch out into new locations, split into different companies or acquire new companies.

This will help the business survive or adapt to new business environments.

  1. Exit

After you have achieved everything you wanted to achieve, you could retire, or sell the business and start another one. Either way you will have achieved your dream and you can now go on and dream another dream.

While no two businesses are alike, the steps above show a general journey taken by most entrepreneurs. I hope this helps you prepare for your journey’s opportunities and pitfalls and succeed.

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