Three disadvantages caused by entrepreneurial failure

As the saying goes, failure is the mother of success. I believe that every store owner has experienced some setbacks and crises. Today, Dian Zhijia will talk about three common reasons why novice owners fail to open a store and start a business. I hope it can help friends who want to open a store and start a business to avoid unnecessary detours.

1. Malicious competition from opponents

Boss Sun, who cooperates with Dianzhijia, told a story of his own personal experience: I opened a barbecue restaurant in Ningbo in partnership with a friend. , the ingredients used in our store are very fresh and the taste is good. In addition, the location is well chosen and there is no competition around. Within a week of opening the store, the business is extremely booming. Basically, people will start queuing up at 7 o'clock every day and wait until 11 o'clock. We started setting up the shed outside the door. After a while, the city management came and said we wouldn’t let it be set up anymore, so we had to give up. But the business was getting better and better, and it was expected that another branch would be opened in half a year. However, bad luck has begun to come. The biggest fear of opening a barbecue restaurant is that someone will have a bad stomach. Some barbecue restaurants here will put some Xielipin. Even people with bad stomachs will generally not have diarrhea after eating barbecue. But if you take too much Xialiting, it will be easy to cause trouble, so I didn’t put it in. What I put in it was a traditional Chinese medicine brought from my hometown. I added it when pickling the raw materials. After eating it, I would have some constipation, but I wouldn’t have any constipation. Other effects. I tried it myself for 3 months, but nothing happened.

Three major reasons for business failure: Is business too good or “bad”? It’s terrible to be envied by peers

The three biggest pitfalls for newbie entrepreneurs: How many store owners have died due to these detours?

It didn’t take long for something to happen. A man in his 30s came to my house. I didn't order much barbecue, but kept drinking. I had a gastric perforation due to drinking, and I was sent to the hospital. Later, he came to my place to make trouble. I offered him 3,000 yuan in compensation, but he refused and insisted on 30,000 yuan. He also insisted on saying it was food poisoning. I felt that he was extorting money, so I was unwilling to compensate him. As a result, within a few days, the urban management, the Food and Drug Administration, and the Meat Quarantine Bureau came to inspect my store one after another. During the inspection, they had to close the store and not open it. As a result, they found that my leeks contained pesticides. Residue. Anyway, in the end I had to close the store and all the money I made went into it. Three days before I transferred, a new store opened across the street, and I understood instantly. Finally, I found out that the owner of the new store had always been jealous of my business, and he was the one who found the person who had the gastric piercing. He was a native of Ningbo and had some connections there.

Dianzhijia would like to remind all bosses that China is a human society. Needless to say, the importance of human connections. What entrepreneurs need most is to put aside their dignity and make use of all available connections and relationships. Otherwise, they will It is easy for some unexpected crises to arise.

2. No planning and insufficient investment budget preparation

Xiao Li is an office worker. He has saved some money after working for several years, and his work is not satisfactory, so he wants to come up with his own business. Be the boss. Thinking of opening a snack bar, milk tea shop, barbecue restaurant, etc., the money can be no less than that of office workers.

Three major reasons for business failure: Is the business too good or not? Peers are so jealous

Three big pitfalls for novice entrepreneurs: How many store owners have died due to these detours?

Xiao Li has no concept of opening a store, only a superficial understanding, and no Know how much each project will cost. Although I opened a store, I only budgeted for some necessary expenses such as rent, decoration, purchasing goods, hiring people, and promotions, and ignored many detailed investment projects. Being too hasty will often put you in an embarrassing situation.

Xiao Li’s budget is 100,000, but opening a store does not mean spending 100,000 to open a store. You must know that the store makes very little profit at the beginning, and many of them have to survive. To be prepared to be unprofitable for a long time, it is generally best to set aside 6 months of rent when opening a store.

Three major reasons for business failure: Is business too good or “bad”? Peers are so jealous

Three big pitfalls for newbie entrepreneurs: How many store owners have died due to these detours?

In the end, Xiao Li couldn’t survive in less than three months with the remaining money. , can only be transferred, and lose everything. This is a mistake that many novices make when opening a store. The reason for closing the store and transferring it is that there is no money.

3. Being opportunistic and being tricked by irregular brand franchises

Many novices are easily persuaded by franchisees with excessive promises. As long as they join, money and dreams will come true. Few people can resist such temptation.

The catering franchise business has always been the hardest hit area for novice entrepreneurs. For example, some catering leather goods companies will say before joining that they have good taste and a large market, making them the most suitable to join. They can earn millions a year after opening a store.

Three major reasons for business failure: Is business too good or “bad”? Peers are so jealous

Three big pitfalls for novice entrepreneurs: How many store owners have been killed by these detours?

There are also some milk tea franchises, which on the surface say there is zero franchise fee, but in fact they What you need to collect are deposits, operating fees, decoration fees, sales promotion fees, etc. The total of a bunch of miscellaneous fees is more than what you paid for the franchise fee. Then if you don’t want to do it, the deposit will have various terms, and in the end there will be very little refunded to you.