SIGNS THAT TELL YOU ARE IN THE WRONG BUSINESS
Sometimes for some reasons that cannot be avoided some businesses don’t just work. This may not be as a result of obstacles that can be surmounted, but because the owner is an alien in that field. And the business might have packed up before he realizes that he had been in the wrong business all along. While it is true that one should strive to exhaust all avenues to make him excel in a particular business no matter how difficult it appears, there should be a time frame for assessment or he may not achieve anything till he dies.
Being in the wrong business does not necessarily mean the individual concerned cannot cope with the workings of the environment. There are times the situation in a particular country will not permit a particular business to grow. For instance, setting up a library in a community where about 80% of the populations are illiterate will be meaningless. The first few days of operation for a sane person, should suggest to him that he is in the wrong business in that kind of environment. The same applies to an individual who decides to open a Chinese restaurant in the same environment.
However, in some other cases, individual talents matter. According to a Doctor of Economics, just as it is with countries, every individual has his area of comparative advantage. Once an individual ascertains this and develops it to the best of his ability, the sky is his limit. This according to another economist, does not rule out the fact that one can learn over time and strive to be the best in his chosen field even when he can do other things better. “When you do the same thing over and over again, it becomes part of you and all you strive to do is to go to the next development in that field. But this definitely does not apply in some extreme cases. A stammered for instance that goes into the business of motivational speaking, may be wasting his precious time because he may not be able to impact anything on his audience.
It may therefore be good to know some of the signs that tell you are in the wrong business. The points outline below apply to all business all and sundry whether online or off-line.
Here we go:
1. When after two years, you still cannot make headway: It is not wise to start a business without plan since there must be mapped out plans of achieving the different goals you set to achieve. There should be a time frame after which you begin to access your company. For most companies, it is good to put the test period at one year. This does not mean that the project should be declared a failure after one year; you can still give a grace period of another year. But after two years you are still not picking up after exploring all the improvement avenues that are at your disposal. You may consider looking elsewhere so you are not caught unawares while wasting more resources. You should however, not do these blindly. You must have considered the gestation period for a particular business.
2. When your total operating cost keeps rising above total revenue: Profit is the difference between total cost and total revenue, so when you are in business and your total revenue is less than total cost; it means you should have a rethink. Sometimes, this could happen because of some oversights in business, so you should not be in a hurry to conclude negatively. But once you have explored all reasonable improvement avenues and you cannot boast of the smallest profit even after the supposed gestation period of the type of business you are into, it is better to look elsewhere. Continuing in that line may mean wasting more resources that could be useful in other areas. However, according to another Economist, a business man who is just starting should be careful not to include the fixed costs in the short run because it may give him a false reason to stop the business, when actually, his bounties are almost to be reaped. In the short run, it is the running costs that should be matched with the revenue. Profit from this should be ploughed back into business for further revenue until you eventually break even, which is when the fixed costs can be taken into consideration. You have done your homework well before starting your business, you would have known how long it would have taken you to break even and that is when you should sit down and determine whether you have recovered the amount you have spent on assets such as land, building or machinery. If two years after the break-even period that the other quoted, you have not recovered all the costs, it may very well mean you are in the wrong business.
3. When your patronage level does not rise above the low figure you started with:
Despite the fact that some business pick up very rapidly almost immediately they start, it is normal for the patronage level of a new business to be low. That however, should change after the first one years. But in the situation where you just have to continue to convince people about your product, even after two years of existence, you should begin to think of a new area. There may be reasons why your products are not being sought after. It may be because you located an elite market in suburbia or other related reasons. For instance, a woman who sells fresh fish, frozen foods in a residential area and after some time discovered that there was low patronage. She then relocates to a better commercial area with high level of traffic. Immediately after she opened the place, it was as if she had been waited for a long time. So that means you could be in the wrong business on account of its location.
4. When it is difficult for you to acquire the prerequisite skill you lacked at the outset.
In some cases those who wish to start a business in an area where they are not authorities, hope to acquire skills on the job. Although it is true that you do not have to be an expert on the field to do well provided you have the resources to employ tested professionals, it is god for the owner of any business to be master of his field in order to avoid being swindled or overtaken. For small and medium scale business in particular, the owner should have it at the back of his mind, that his customers are also potential business owners. So, he should strive to be good as they are on the job, so that he will be quick to detect when there is a possible sabotage or when they are not telling the truth about a particular business problem. Once employees in a one-man or small-scale business know that without them, the business the business cannot go on, the owner may not be in trouble. So, if you had thought that after two years, you would have been able to acquire the necessary skills and it still eludes you, then you might as well look elsewhere.
5. When you cannot cater for the basic needs of life and more. Is there anything as worse as this? Isn’t it better to be dead than not being able to do this? For me I feel this is the most painful part. It is better imagined. Imagine a business that can’t get you a car, cozy accommodation, good food and cloths, children’s tuition fees and son and so forth. The essence of business is first and foremost to cater for ones basic needs and also to be able to afford little luxuries. So, the income you earn from your family and keep you comfortable to an extent. What is the point working when you still have to depend on people for survival? There is no way you can be fulfilled in a business you operate that keeps you below poverty level; fulfillment only comes in only after money begins to roll in. There is no point staying in a business that does not give you financial satisfaction. If you own your own business and you are still borrowing from friends to survive after one year, you should think of something else so as not to waste your active years. It is good to make hay while the sun shines.
Here’s a good list of business you can do online with good income:
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