Many people have great business ideas, but they don’t get a chance to make it big due to bad decisions up front. While starting out, just follow these steps if you want your business to fail big.
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Lock In High Overhead Costs
Want to put your business on the path to fast failure? The easiest and fastest way to do that is to lock in high overhead costs when starting out. This can be anything from high rent or equipment costs to high insurance or other recurring costs.
In one recent business venture, my partners and I decided on a high up-front cost plan, which made breaking even very difficult. Had we been smart, we would have replicated a previous business plan with almost no costs locked in.
Forget About Margins
You work hard for each sale. If you want them to be worth very little to you, make sure to build a business of low margins.
If you sell a product, make sure to build in a sufficient profit margin to keep in business and cover your fixed costs, plus your own pay. Your profit is made up of your margin per unit times your number of units. Make an accurate and conservative forecast of your sales when deciding how to price your product or you will be out of business in no time.
Don’t Plan for the Future
If you want to avoid a future for your business, just take the easy way out and don’t plan for it.
When you get started, it might not be worth your effort to write a lengthy business plan. However, you should have a long term plan for your own operations and success.
Plan for scale, growth, product sourcing, employment needs, and anything else that may hamper operations if they are not handled quickly and adequately when the arise.
Ignore the Competition
One of the best ways to put yourself out of business is to let the competition take all of it away from you. Just ignore what they are doing and let your service and innovation go stale to give them a big leg up.
Instead of letting your competitors get ahead, pay attention to what they are doing. Monitor the market and what others are offering. Always do your best to innovate and stay a few steps ahead of the competition.
Let Marketing Happen Naturally
Forget marketing, forget success.
Even in businesses that I’ve had that market themselves, I’ve always put a deliberate mind to how new customers find me and re-connecting with customers to bring them back again and again.
Always plan out your marketing, whether through the media, paid advertising, online marketing, or other means, to ensure your message gets out there. Don’t forget a strong call to action!
About Carson Derrow
