[tweetmeme source=”LessonsInBiz” only_single=false] In the grand scheme of life, there are bound to be mistakes, failures to be exact and in business, that is magnified ten times. If you are a first-time entrepreneur, these failures are to be expected. The important thing you need to do is to arm yourself with the knowledge of how a business may fail so that it wouldn’t happen to you.

  • You did not do your homework. There’s no research done or if there was, it was pretty much generic. Do not underestimate the importance of studying your target market and how your product will fare once you launch it. Your idea might be brilliant but you have to make sure that there’s a need for it or that you have made it a need.
  • You are either under or over-staffed. Let me give you an example. In recent news, AOL-owned social news website Propeller, will be shutting down soon. What captured my attention was that Wikipedia claims it is just being run by two people. Come on! If you’re planning to start a business (or if you’re already running one) that you hope would be big enough to conquer the business world but small enough to be run at home or at the very least, in your locality, hire more people who are good at what they do. I’m not saying you should be hiring more, just enough for your business to grow and thrive. Because isn’t growth part of your agenda?
  • You have too many debts and too little cash flow. The lesson? Do not overspend. Don’t give indecently big bonuses to your employees that you know you wouldn’t be able to recover financially.

What other epic failures do you know? Feel free to drop a comment.