Do you know why so many lone workers go out of business at their early stage?
It’s really a futile attempt to deny this fact. As a significant number of independent workers have to close their venture in the very first year. The thing to ponder here is, why most business defunct for the single entrepreneur and how to make their venture a success.
There are a number of reasons why a lone worker failed to make a successful venture. Let’s take a look at some of them –
Lack of Profits
If you want to sustain as a lone worker, your venture needs to earn a profit. Most of the lone workers staggered to his feet in the name of profit. Actually, profit-making is a habit. If you want to survive alone, you need to develop this habit.
“A cynic is a man who knows the price of everything, and the value of nothing.”- Oscar Wilde
This is the right kind of attitude for an independent businessman. Otherwise, you would fail to make a profit from your work. That eventually set the closing date for your business. So, better you track down the following two issues and put a period to it-
- Sufficient profit generation
- Margin down the loss
Bad or No Risk Management
Never underestimate the risk management effects on your venture. If any mishap is ever going to happen, you are the one who has to take the control measure. Presupposition has a greater importance while you are a sole trader. And the scary part is, as a lone worker, you have to find the chance of occurrence on your own.
Working alone has a particular regular legislation for risk management. Get contact with an authorized personnel. And conduct a thorough assessment of the risk management policies. If the assessment and review ask for any improvement, you have to take prompt action in order to reduce or eliminate the overall risk impact on your business.
Lack of Communication
The purpose of communication is to support the growth of a venture. You are a lone worker. You need an uninterrupted connection with your viable clients. Above all, you are bound to work by yourself for a substantial amount of time.
So, let’s look for the solution now. Virtual receptionist services, this is the help where the concept of “personal assistant for the lone worker” doesn’t work. It’s a sad fact that we often got carried away with cutting-edge technologies. If you want to survive, be in constant touch with your customers. It’s a prerequisite for a successful business venture.
Lone workers often suffer from lack of resources. While working alone, one may consider taking fund. Then you can use any one of these two basic policies –
- Debt finance: borrowing funds that you pay back with interest within agreed time frames (e.g. bank loans)
- Equity finance: investing your own or other stakeholder’s funds into your business in exchange for partial ownership (e.g. venture capital)
Being vulnerable is not a wise place to be, particularly for an independent worker. Above all, low funding can put your venture in a jeopardy. A backup personal capital can help you here. List down all the necessity before the jump start. You must consider the following three things –
And, last but not the least, you can try outside source as a potential capital generator.
Wrong Target Customer
Whatever service or products you are selling, you need to target your core customers right from the start. Lone workers often fail to predict. Do consider particular demographic and regional information that you are about to chase. And of course, try to avoid the following three mistakes –
- Target wrong industry
- Target wrong region
- Too broad target
If possible, take advantage of real-time data. As an independent worker, build your own market analysis system. And modify your database whenever any considerable economical shifts occur.
This can be a potential reason to cause your business a failure. In reality, business does end in the gutter for overconfidence. You work alone, so you have no one else to pass the blame off. Most lone workers rarely follow any precise guideline and system. Rather they prefer to cash their confidence out, in most possible ways. Overly confident people find it really hard to accept that loss is the part and parcel of a business. And the result is pretty obvious.
Nevertheless, lone workers have much more success along the way that they have the failure.