TIPS ON HOW TO SET UP A BUSINESS AND GUARD AGAINST BANKRUPTCY

Author: Michael Valentine 

Establishment of a business enterprise is not an easy task. It takes courage, vision, determination, purpose and commitment for any entrepreneur to set up a business venture and guard against bankruptcy. For such venture to stand the test of time, the entrepreneur needs knowledge of what works and does not work in a business environment. The following business tips are therefore important in ensuring the progress and growth in business as well as guard against business failure.
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Why businesses fail
Research has shown that there are varying causes of bankruptcy. The reasons range from inability of the entrepreneur to spot opportunities in business environment, as well as lack of appropriate business tips on how to ensure growth and good management. The reasons why many businesses fail include the following:

1. Insufficient fund - No business exists and survives without capital. Funding is the life wire of every business venture. Any entrepreneur planning to set up a business must ensure that there is solid capital base that will keep his business moving till it starts paying off in business environment.
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2. Business location and clever business plan - The location of a venture is a determinant factor towards its success. A poorly situated business enterprise is an indicative of business failure. However, the business plan has to be carefully planned. Such a plan must put into consideration sustainability plan, marketing or promotion measures if it must survive competition in the business environment.

3. Business execution and good business management - There is no way an entrepreneur can effectively guard against business failure without proper and jealous execution of business plan as well as solid business management backed up with vision, courage and commitment. However, the entrepreneur has to gradually expand. The business should be adaptable to changing market places; the overhead cost should be kept low and never should competitors be underestimated.

4. Term-value - Entrepreneurs should endeavour to build long-term value of their business rather than concentrating on short term profits. Life-time customers and repeat business are effective tips towards guarding against bankruptcy.
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5.  Creation of business opportunities and reception of feedback - Any entrepreneur who wishes to survive in the business environment and guard against bankruptcy should not stop seeking for business opportunities, which could come any time of the day. The opportunity could come in form of expanding old business, picturing a new side to old business, or come upon a new business idea. However, it should be pointed out that survival of any business enterprise depends upon how well the entrepreneur receives feedback. Feedback helps in ascertaining the performance of any venture, whether it is progressing or retrogressing.
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Useful business tips are important for the survival of any business in the business environment.

They help the entrepreneur to understand and internalize his business concept, ensure efficient management of the business as well as guard against bankruptcy.

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