Budding entrepreneurs fill the news pages daily. Everyone wants to create that next product or service others will want. The idea of starting your own business brings thoughts of glamour and excitement. And it should! Don’t forget that business skills are needed, too. If you haven’t carefully considered all aspects of your fledgling enterprise, bankruptcy may be a distinct possibility. Many famous entrepreneurs have declared bankruptcy along the way, including Walt Disney.\
According to an October 2014 report by CB Insights, the top five reasons start-ups failed are:
- There was no market need for the product or service.
- The entrepreneur ran out of money.
- The business didn’t have the right team in place.
- The competition won.
- There were issues with pricing and/or cost.
With so many possibilities for failure, you have to be very careful about developing your business strategy and marketing plan. It is essential that you study the possible competition and how they are pricing their products and how they are marketing themselves.
Do a little market research to determine the viability of your product. Or, like Walt Disney, you could create a demand for it. Perhaps you noticed three of the top five reasons involved marketing. That means entrepreneurship involves selling. It means you have to be visible to your potential prospects, assuming you have prospects for what you’re selling.
Mankato entrepreneurs: if you find yourself battling to stay afloat, you might want to contact the bankruptcy attorneys at Behm Law Group, Ltd., to consider your options. If Walt Disney could pull through his setbacks, so can you.