business model

Warning Signs Your Business is Failing

Warning Signs Your Business is Failing

Reading Time: 2 minutes

It is hard to start a business. It is even harder to keep a business afloat most especially during trying times. In fact, statistics reveal that about one in five businesses fail within the start-up period. Although no entrepreneur wants his or her business to fail; nevertheless, it is important to be aware of warning signs your business is failing. Here are some red flags to watch out for.

1.Diminishing Funds

The most obvious sign is the diminishing funds. Your capital is running out. And if you still have not made enough sales to keep your business afloat nor are you able to get additional funding or investors, then it is a sure sign that your business is falling. Almost all businesses need capital to survive. There are operational costs. Thus, it is difficult to operate with low funds available.

2.Ineffective Team

The success or a business especially for. a start-up relies heavily on the people managing it. A great business idea or perfect business is worth nothing without a group of individuals who share the same vision, passion and drive to make the business a success. Each member of the team must be on the same page. Thus, it is important to ensure that you have your dream team managing your business with you.

3.Low Demand

Sales and revenues play an important role in any business. In order for a business to survive, there should be enough sales to cover much more than the operating expenses. The higher the revenue, the better it is for the business. It not only equates to profit but it also means opportunity for growth and expansion. And sales and revenues are all dependent on demand for the product or service. Without demand, no one will buy.

4.Nonstop Problems

If you find yourself facing problems one after another, then that is a sign that your business is failing. It is so easy to be caught up in the day-to-day operations of a business that sometimes we fail to look at the bigger picture. It is just like problems in life. If you are faced with the same challenges over and over again, it simply means you are not learning your lesson. You need to address the root cause of the problem in order to move forward.

5.Unchanging Business

Times are always changing. In the past a few months alone, we have witnessed how the world changed. We just woke up one day and suddenly, we are in a whole new world. Just as it is important for individuals to adapt through changes in life, adaptability and innovation are also important for businesses. Just look at what happened to multimillion dollar businesses such as Kodak, Nokia and Blockbuster.

Now take a look back at the last 12 months; what changes have you made in the business. Just because your business is still doing well does not necessarily mean that it will continue to do well in the future. Learn to adapt to change.

These are just some warning signs. It does not necessarily mean that your business will ultimately fail. It is just important to spot them early on so you can address them quickly.


Feature Photo by Andrea Piacquadio from Pexels

Posted by A.L. Jonas in Occupational, 0 comments
Dream Team: People You Need in A Start-Up

Dream Team: People You Need in A Start-Up

Reading Time: 4 minutes

Who is your dream team: the people you need in a start-up? If you are thinking of starting a business; you will need people who will help you to build the business and keep it going. Just like the people you need in your personal life, you need a team to help you develop the business to its full potential. Here are the 4 people that you need to help you prepare and develop your business.

The Creative / Innovator / Concept-Oriented

You need a person who is very creative and can dream up new ideas. This person has a vision for what the product can do and where it will take the business. This person may also be an innovator. The Innovator is someone who is able to take an existing product or idea and turn it into something new. Or by adding or changing a component they can come up with a new product or service. They are usually risk-takers who are not afraid to try out new things.

These people don’t only have a concept in mind; they also have an idea of how a product can benefit both the business and its customers. It is important that this person also has good communication skills. This will help other members of the team to understand their ideas clearly. Often, they are in-charge of product conceptualization and design. They also play a significant role in actual product creation.

As a visionary, they are the people who can keep the team on track when the business hits roadblocks. Their creativity and innovative nature are key factors in helping the business find solutions to issues. They are an important member of your dream team, the people you need in your start-up.

The Doer / Builder / Detail-Oriented

The Doer will work with the creative person to work out the specifics of the product. Therefore, they are detail-oriented and puts in the time to research on the information needed to help build the product. They are the one’s who will figure out the specific components of the product or service offering. The main focus of this role is to plan the details and create a blueprint for the product or service; and eventually to build it by incorporating all the components they have identified.

Being detail-oriented, this person will ensure that the requirements have been meet before the creation process starts. They will also focus on ensuring the quality of the product as they build it. These people will have great technical skills, are problem solvers and are passionate about learning as they work. They are usually tech-savvy too. Some of them may be a generalist, with good competence in many fields. Or they may be excellent in their field of specialization. They see the big picture like the visionary. Just as easily, they can drill down on the details and build the product or implement the steps to make a concept work.

With their eye for detail, they will be able to exchange ideas with the creative. Together, they can come up with the best combination of ideas and components to help build the final product. They can also give practical advise to the creative. Their focus is to help ensure that the product or service is feasible for production and is produced in the best quality.

The Processor / Task Master / Process-Oriented

A business has many components working all at once. In a start-up dream team, someone has to be good at overseeing all the processes and assigning tasks accordingly. They need to ensure that the operations are efficient and that goods and services are delivered on time.

Like the builder, they are also detail-oriented. They apply their talent to creating systems that make the business operations smoother for all parties involved. Also very technical-oriented; they see the requirements for each department or unit in the business.

They also need to have a creative side. This helps them anticipate and piece together the different pieces of the business system that they need to create. These individuals are highly organized and are also visionary in nature. They are mainly in-charge of making sure that each part of the business is working properly; from top to bottom, start to finish. Usually impatient and very deadline-oriented; they still need to keep an open mind. They should be ready to spot-correct at any time for any troubles that may come along the way. You may think of them as slave drivers sometimes, but for your dream team, they are one of the people you need in your start-up.

The Connector / Sales Master / Social-Oriented

Businesses need to connect with their material suppliers, third-party service providers and other partners. One of the people needed in a start-up is someone who can communicate with external partners and maintain a stable relationship with them.

Most of these people are good networkers. They also have a flair for sales. One of their tasks is to convince potential partners to work with the company. They need to be able to “sell” the brand to other people. They also have a large network of people on their contact list as they are naturally sociable by nature.

These types of people are often extroverted and are not shy to introduce themselves to other people. They are also quite confident and naturally curious. One of their talents is to find out information without being too prying. A casual conversation could lead to an information mining session with this person. An important member of a start-up dream team; they can help expand the business thru partnerships and other external resources.

Depending on the nature of your business, these are some of the people that you need in your start-up dream team. Consider having a mix of both generalists and specialists in these roles as they can learn from each other. You don’t necessarily have to assign an individual team member for each role. You may start-up this way, but eventually, you will grow so that one member may head the business unit that fulfills each role.

It is important that these people collaborate with each other well. After all, you will end up spending more time with them as the business grows. You may notice that almost everyone on this list share similar attributes of being creative, detail-oriented in different areas, being open-minded and having a willingness to learn new things. Also, keep in mind that as a small team, you may end up with overlapping roles or even swapping roles from time to time. You may even be working on different aspects of each of these roles.

Another thing to consider when starting-up a business is to ensure that your organization has the characteristics of successful start-ups. This way, your business will be able to sustain its operations and fulfill your team’s goals for a long time.


Feature Image: Original Photo by Antonio Janeski on Unsplash.

Posted by H.J. Rangas in Occupational, 0 comments
Start-up Terms That Every New Entrepreneur Should Know

Start-up Terms That Every New Entrepreneur Should Know

Reading Time: 2 minutes

Starting a new business? Here is a list of start-up terms that every new entrepreneur should know:

1. Angel Investor

Also known as a seed investor, an angel investor is a high net worth individual who invests money in a start-up. This person can be a family or friend of the business owner. in return for the money invested, the investor will then become a shareholder of the company.

2. Business-to-Business (B2B)

A B2B business means that your product or service is being offered to other businesses.

Image credit : B2B Marketing

3. Business-to-Consumers (B2C)

A B2C business means that your product or service is being offered directly to consumers.

4. Beta Test

Beta testing is the final testing of a product before it gets released to the market. This allows the company to receive direct feedback from its target customer. It is the same as a soft opening soft or soft launch. In short, it is a trial run. By doing this, a company gets a chance to improve the product or service.

5. Bootstrapping

Bootstrapping is building a company from scratch with limited resources using your own personal savings.

6. Burn Rate

Also known as the run rate, it is amount of cash that is being used by the company to finance its operation. In a way, it is the rate of money that the company is losing each month because the company is not yet earning. In short, it is the negative cash flow.

7. Minimum Viable Product (MVP)

The minimum viable product is a version of the product with just the basic features. This version is just enough for the product to be usable to its target customers. Releasing a minimum viable product is cost-effective. It also shortens the product development phase. In addition, the business can start receiving feedbacks from the customers that they can use to further improve the product.

8. Pivot

A pivot is a shift of business strategy when the initial product or service failed.

9. Return-on-Investment (ROI)

The return on investment is the measure of whether a business is profitable or not in a given fiscal year. To calculate the ROI, simply divide the net profit with the total investment made then multiply by 100. Generally, an average return of 5-12% is good.

10.Venture Capital

Venture capital are private firms that offer financing to start-up companies. These firms can be pension funds, financial institutions, investment banks or even universities. They see potential long-term growth in the start-up. These firms will buy a stake in the company for a certain period of time and then exit once they are already profitable.


Photo by Startup Stock Photos from Pexels

Posted by A.L. Jonas in Occupational, 0 comments