How to Avoid Pitfalls in Business

How to Avoid Pitfalls in Business

The business environment is unique and dynamic. It requires special skills to develop a profitable business. More often than not, people start businesses without a clear framework which makes them not see the light of the day. Businesses with a clear work plan and focus always make it from the initial stages of development. Therefore, it is essential to know what to undertake for your business to succeed and what ought not to do. It would be best to avoid common pitfalls to have a successful business venture. We will look at some common pitfalls that businesses need to avoid to succeed.

Understand your revenue structure

Jonathan Osler wants to point out that the success or downfall of a business is pegged on revenue generation. Most startup businesses fail to succeed because of ignoring the revenue factor. Before establishing a business, ensure you have understood your revenue streams and the kind of expenses the business will undertake. For instance, people without prior knowledge of managing their finances might find it difficult to do proper budgeting. Increased cash flow means the business is on the right course to success, while reduced cash flows mean there is a problem with revenue generation. As a business owner, the biggest pitfall to avoid is the misuse of finances without proper budgetary allocation. It is crucial to avoid the problem of financial mismanagement if your business is to succeed.

Desist from hiring friends and family members

As much as you are establishing a business entity for the benefit of your family members, it is imperative to remain professional in the running of the business. This means that all hiring of employees should be done on merit status rather than favoritism grounds. The greatest undoing business people do is bowing to pressure from family members, especially if the business is family-owned to employ close relatives and friends. Such acts will lead to poor performance because of unqualified people’s lack of skills and credibility. Due to close family ties, you might lose money through misappropriation, and there is nothing much you can do as a business owner. A successful business will recruit fairly and get the right people for the job, and it’s encouraged to keep family members away from business if you want to prosper. Though not all family members are wrong, some might be good and willing to deliver, but it takes skills to point out the best that will not derail the business’s success.

Have a target market
A successful business has a clear-cut market share and target customers. When starting a business, you need to conduct proper market analysis to understand consumer behavior before rolling out the business. As a business owner, the biggest shortcoming you can do is starting a business without clear goals and market research. A good market is what drives business development and acceleration. Without a target market, your business is as good as dead. According to Jonathan Osler, a communications strategist and educator, business leaders should prioritize the goals they want to achieve before establishing a business entity. Osler has played a role in advising businesses on what to avoid succeeding. Throughout his career, he has helped organizations raise funding for business by educating them on the correct tenets to have when heading a successful company.


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Pamela is a television journalist, humor writer and novelist. Her first novel, Allegedly, was released in 2015 by St. Martin’s Press. The book is available on Amazon and Barnes & Noble. She and her husband, Daniel, have a 3-year-old son, Carter.

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