How To Succeed When 46% Of Business Failures Are Due To Incompetence

October 20th, 2017 | by Anica O
How To Succeed When 46% Of Business Failures Are Due To Incompetence

Many new startups fail each year, and you certainly do not want your new endeavor to struggle and ultimately flop. As many as 46 percent of businesses fail because of incompetence. This essentially means that the business owners lack the appropriate amount of skills, experience and knowledge to succeed with their effort. The reality is that many of these businesses could have had a better fate if the owner had taken proper steps to improve their competence before and during the launch. With a closer look at what it takes to succeed, you may be able to avoid being included in this unfortunate statistic.

Develop a Great Business Plan

Preparing a business plan for your startup may seem like a waste of time to some entrepreneurs. After all, you may know in your head what needs to be done to launch your business, and you may not see the point in writing everything down in a formal layout. However, during the preparation of a formal business plan, you will be able to identify potential issues and areas where you may need extra help or support along the way. You can thoroughly research solutions and properly plan for obstacles that you may face before they arise. You may even seek additional information before a matter reaches a critical level.

Focus on Improving Your Knowledge and Education

You also need to focus on improving your knowledge and expertise in a wide range of areas. For example, you may take seminars, like Christina El Moussa’s Success Path that she discusses on Huffington Post, if you plan to work in the real estate or design fields. There are numerous seminars and certification classes in many fields that may be directly relevant to your business or to the operation of your business. By improving your education level on important industry or general business topics, you can better position yourself for success when you are ready to launch your business.

Learn from Others’ Past Mistakes

You do not have to recreate the proverbial wheel when launching a startup. There are numerous books, articles and even online videos that you can turn to for information about how and why previous startups have failed. Each failure provides you with unique insight and even tips about things to avoid with your own startup to improve your chances of success. The more that you can learn from others’ past mistakes, the better your own efforts may be when you launch your new business.

Know When to Outsource

Funds are usually limited when you are starting a new business, so your general inclination may be to try to do as much work as possible on your own. However, there are times when outsourcing is a better option. For example, if a certain task requires expert-level knowledge that you lack, hiring a contractor is a great idea. Remember that an experienced and skilled contractor may be able to do the work far more efficiently and accurately than you can. You can also free up your own time to focus on other important details necessary for the success of your business when you are not struggling to complete a task that you are not familiar with.

Starting a new business from scratch can be intimidating, and the fact that so many startups fail can make this effort even more stressful and daring for some people. Because almost half of all startups fail because of incompetence, it is necessary to properly plan out all aspects of your launch and future growth. More than that, you need to educate yourself fully, learn from others and seek experienced and skilled help as needed. When you follow these important steps, you can more easily position yourself for success with your endeavor.