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The Three Factors Unsuccessful Small Businesses Have In Common

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Starting a business is never easy and has more than meets the eye. According to statistical data, 20% of small businesses fail in their first year and 30% in their second year, 50% in their fifth year, and 70% beyond their tenth year.

The rate of failure of these small businesses is because they face a unique challenge where they need to produce a profit in a limited time without sacrificing the quality of their services or products.

Having said that, knowing the areas where these small business owners went wrong may help others execute it correctly. Here are the three most common factors unsuccessful small businesses have in common:

The Service Or Product Was Not Clear

If your service or product sends a poor message to your prospective consumers, then it is likely that your business will fall apart. Your target audience must quickly understand what your business do and has to offer.

In most cases, small businesses tend to implement scattered ideas and overgeneralize; this makes them lose their competitive edge and mass appeal.

Your product or service should send a clear, specific, and direct message. It does not only need to stand out, but you must evoke action and address a need or a problem that your target consumers must solve.

If you can accurately define your business in a sentence, then you are ready!

The Lack Of Structure

A good structure means having a stable foundation for your business to stand upon. Without proper structure, then your day-to-day operations can be a mess.

If your business lacks the technical aspects such as payroll, ordering, shipping, weekly expectations, then your business won’t reach its maximum potential. The structure is what binds your company to be time-efficient and professional. Plus, according to Jennifer Dawn, a serial entrepreneur and renowned business coach said that structure is a reflection of the owner’s maturity.

“If their daily habits are unstructured, disorganized, and they tend to make rash decisions, be lazy in sales, or drop the ball on important financial matters, the business will suffer. The character strength of the owner is vitally important to the success or failure of a business,” she explains.

The Business Owner Is Not Ready 

An ineffective leader often causes a business to fail. Some business owners are not prepared to take upon a considerable deal of responsibility and are not prepared to step up into a significant leadership position. In small businesses, the founder plays a vital role as he or she is the person in charge of running the entire show.

If a business owner is not ready to run a full-blown business, then that factor will reflect on many different levels and ways. Based on Kate Bagoy, a business coach who helps self-employed entrepreneurs says that a company demonstrates the owner’s desires and is also rooted in the lack of clarity, structure, and “founder mindset.”

“In my opinion, the #1 reason businesses fail is due to founder mindset. We always find another reason — the market wasn’t ready, we ran out of funding, we hired the wrong people — but at the end of the day, successful business owners find a way to move forward. They pivot, they learn, they grow, and they develop resilience to stay in the game until they find success.” Kate explains. Metadata: Nuts are small but healthy foods. They not only taste good but bring many benefits when eaten right. Here are some common nuts and the health benefits they carry.

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Running The Family Business: How To Avoid A Sequel Fallacy

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Running a business is hard. But running a family business poses a few more challenges. Several family-run establishments crumble because they fail to see that change must be done and what kind of changes are needed. 

The next generation is so focused on getting the position they forget what it means to manage the business. They never go tangent to what they saw growing up. In their minds, what worked before will work now. So why change? Both the predecessor and the successor gloss over the facts that they are different from one another, they possess different traits from one another. They grew under different circumstances with different experiences. They also miss the idea that times are changing.

When the enterprise collapses because both parties presume that the family business sequels don’t need to understand the business environment and the position he/she is getting into, that is called a “Sequel Fallacy.” To secure a successful succession plan and avoid a Sequel Fallacy, there are some things to consider.

How To Avoid A Sequel Fallacy

A failed family business means more than just losing an establishment. Relationships are lost, and names are sullied. What needs to be understood that running it is not a one-person job. Connections and open-minds are vital when running a family business.

Understand The Change

Things change and become more complicated when more people are involved. Families are always getting bigger, which means more effort must be exerted to keep the business afloat. Efforts must also then be used to understand the differences among members. When that is done, you can have a conversation with the members to see how diversity will contribute to the future.

Consider Outside Help

You can learn from other businesses who went through a similar situation and remained unbeaten. Getting insights from them will help you to understand what to do and what not to do. Even those who do not go through what you did can give some advice as to how to handle the situation.

Open Your Mind

Although past actions lead to the establishment’s success, being open to change will significantly benefit the current business, as well. You can learn from tradition and let it guide you, but do not let it strictly dictate what you should do. There is a difference between disrespecting tradition and taking a new path to benefit the business.

Take Time To Make Succession Decisions

Most of the time, the older generation have a set person in mind to take over, usually the eldest of the children. But this brings some problems. It can put pressure on both parties. It can also ignore the potential of other family members. Create a plan that can develop over time. This will make sure that the successor is ready and deserving.

Talk About The Future

It takes time to create a good succession plan. Everyone, both the old and new generation, should openly talk about their views, procedures, and problems. Talk about what about the past should be repeated and avoided. Doing this will not only create a healthy atmosphere but will also give the next generation a guide to what to do.

The Bottom Line

Create a succession plan that acknowledges the differences between each individual. Be prepared for and open to change. Understanding these will benefit your business and make it stronger and better.

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What It Takes To Start A Business & Be A Successful Entrepreneur

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More and more Americans want to be entrepreneurs and be their own bosses. About 24 million individuals aim to achieve this goal by 2021. However, a majority of these people are not fully aware of what they are getting themselves into. It seems that budding entrepreneurs have expectations that are too high and quite unrealistic. 

A recent study revealed that people who want to be entrepreneurs think they’re going to achieve a better work-life balance when they become business owners. The assumption is that running a business is less stressful. They also expect that they’ll be earning more money and will be more stable financially. 

While such things may happen to some, it’s not going to be easy for many. If you’re planning to start a business, it’s important to be cautious because there are going to be a lot of challenges along the way. The reality could be that you’re going to need to work much harder and you may not be able to get what you want from it immediately. 

Having a business means you’re your own boss. That alone makes being an entrepreneur really enticing for many. But now that you’re not going to answer to any boss, be prepared to satisfy something bigger than your superior: your customers. Starting a business is a lot of hard work. You need to show up every day and do your best to provide the best products or services to your clientele. 

If you’re also expecting to earn more once you start your business, the reality is going to hit you quite hard. It will take a few years for a business to become stable and to really start earning well. You have to be prepared for this so manage your financial expectations while you’re building your business from scratch. Be sure that you think about your resources carefully. 

There are going to be many changes once you start a business on your own. You’re not going to be reporting to an office anymore. You’re not going to stay there for at least 8 hours working on tasks given to you by your boss. But if you think you’re going to have more time not working, you’re wrong. 

Your business is going to demand your time, energy, and commitment. You may no longer have to stay in an office for 8 hours but you’re going to think about your business at all hours. It’s true, you can work anywhere you want: at home, a cafe, or a coworking space. You can work on your business while being around your family. That’s a great advantage of being an entrepreneur. 

But also know that it may become lonely for you at times. You won’t have any officemates anymore to talk to. Nevertheless, you will have time for your friends and family. It’s just a matter of managing your time well. 

To be a successful entrepreneur, prepare for a tough couple of years. You need to survive the challenges that you’ll encounter during the early years of your business. In the long run, it’s going to pay off. Stay positive, passionate, and driven. 

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Big Businesses – Bigger Global Actions

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The beginning of 2020 also marks the commencement of the Climate Decade, which aims to limit global heating to 1.5°C by 2030. Making bigger, bolder steps in effectuating the Paris Agreement are over 200 multinationals with ambitious initiatives on renewable energy, electric vehicles, and smart efficient energy. In steering their wheels towards becoming environmentally responsive profiles that globally collaborate, innovate, and sustainably lead, 10 of these big businesses share below the critical role they’re playing in this urgent global cause that brings awareness into action.

1. Unilever

CEO Alan Jope declares that Unilever’s collective response comes in the form of a set commitment to 100% renewable sources for grid electricity; a science-based target at 1.5 degrees; and an envisioned carbon-neutral business by 2030.

In light of this, Jope  says, “But governments need to join forces with businesses to increase climate ambition, particularly in the run-up to COP26 in Glasgow and limit warming to below 1.5 degrees.”

2. Dell Technologies

Vice President of Corporate Sustainability David Lear claims that Dell Technologies turns to its #ProgressMadeReal 2030 goals in committing to their deliverance of a “comprehensive science-based climate program, setting emissions goals across facilities, supply chain, and operations and extending to customer’s use of [their] products.” Moreover, Dell is a part of The Climate Group’s RE100 that accelerates commitment to go 100% renewable.

3. ReNew Power

Chair of the India Advisory Group and Chairman and Managing Director Sumant Sinha’s company holds the title as India’s largest clean energy company with over 5 GW of power generated from renewables. Sinha shares ReNew Power’s role as a catalyst in the country’s transition to green energy by means of “targeting a capacity of 20 GW by 2024 to reduce dependence on polluting fossil fuels and make a healthy contribution to the Government’s target of 450 GW from renewables by 2030.”

He added, “We will focus on adopting best practices in energy efficiency, greening our supply chain and supporting the development of cutting edge storage and e-mobility solutions to add more teeth to the fight against climate change. We also look forward to working closely with the Government and civil society to advocate necessary policy reforms for decarbonizing the economy.”

4. Givaudan

CEO Gilles Andrier holds that Givaudan is headed to climate-positive operations before 2050, with an interim measure that rolls a decade earlier; is aligning their science-based targets with the 1.5° Celsius ambition; and has signed the UN pledge. Also, Givaudan’s entire electricity supply is moving towards fully renewable source by 2025 as an active member of RE100.

5. Ingersoll Rand

Chairman and CEO Michael Lamach shares the company’s Gigaton Challenge that, as part of their 2030 sustainability commitments, aims to reduce carbon emissions by one gigaton, solely gobbling 2% of the world’s annual emissions. Operating by this initiative means dramatically rethinking and changing the way the brand heats and cools homes, buildings, and transportation.

6. BT

Head of Environmental Sustainability Gabrielle Giner prides BT in internally harnessing technology that abides by environmentally conscious targets that, too, encourages suppliers and consumers to act accordingly.

“We were among the first companies in the world to set a science-based 1.5-degree target on global warming and [to have] achieved our 2020 goal on carbon emissions reduction four years ahead of schedule. We now aim to reach net zero by 2045 – and to get almost 90% of the way there by 2030.”

7. Landsec

Group Corporate Affairs and Sustainability Director Caroline Hill boasts Landsec’s path towards becoming a net zero business that aligns with the company’s updated science-based 1.5° Celsius target that sees a 70% reduction in its absolute carbon emissions by 2030, future developments included.

8. Mahindra Group

Chairman of Mahindra Group Anand Mahindra describes the detailed directions guiding the organization towards the implementation of The Paris Agreement: Science Based Targets for 2030 and Carbon Neutral by 2040. Mahindra says, “Nations will do a stocktake in 2023. We hope there will be good news. It’s all for one and one for all. Let it be a decade of outperformance on climate action.”

9. UltraTech Cement

Managing Director KK Maheshwari details, “UltraTech is accelerating investments in low carbon products and technologies to develop customized solutions for the Built Environment.” In collaboration with The Climate Group and other like-minded actors in targeting the world’s challenging target of Net Zero by 2050, the company is eyeing technological breakthroughs that would boldly address and reduce emissions.

10. VMware

CEO of VMware Pat Gelsinger prides the company in its recent carbon-neutral distinction after its efficient and intelligent use of infrastructure that has barred the emission of 664 million metric tons of carbon dioxide into the atmosphere since 2003, such amounting to the combined annual power consumption of Germany, Spain, and France.

Gelsinger added, “That’s why we’re proud members of REBA, RE100 and EV100—powering 100 percent of our operations with renewable energy and have committed to support the uptake of EVs by our employees. We’re also working on exponential innovation such as our solar-powered community microgrid and a carbon avoidance meter for our customers.”

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