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3 Reasons Why Your Business Fail

[Image: gettyimages-500782673.jpg?crop=0px%2C136...C485&ssl=1]

Startups are funny things. No sooner than you’ve launched, you realize you are managing a real business.
Founders need to think about fundraising, boards of advisors, pitch decks, roadshows, and their ability to scale. They need to figure out how to build a global company and how best to pitch a group of potential investors.
For the many startup founders that I talk to every year, maintaining success distills down to three simple things:
1. Never forget the fundamentals

Most operations go out of business because they don’t have enough customers or money—normally at the same time. So invoice as soon as you can, preferably before you start or finish the job. Make invoicing and collections a daily ritual.
Never assume that the bigger a client is, the faster they’ll pay. Normally it’s the opposite. Be extremely clear on payment terms and consider reducing them where possible. If your terms of trade are 90 days, squeeze that down to 60. It’ll help to boost your cash flow.
The list of fundamentals is a long one. You’d be amazed the number of businesses I go into that fail to get key contracts in place before starting jobs, or fail to sign on a bookkeeper or accountant at the beginning. Your chances of success increase exponentially when you do.
2. Focus or fail

You’re either all in on a very specific task or you’re all over the place.
With success comes opportunity. And with opportunity comes distractions. Business coach and Hindu leader Dandapani explains that where your attention goes, your energy goes. In the early days of a new venture, we allocate a lot of energy to it. As success lands, we expand our focus and our energy goes with it.
Xero founder Rod Drury is often asked if he’d like to invest in up-and-coming startups, mentor, or sit on boards. More often than not, his response is, “Sorry, I’m all in on Xero.” He’s built a business from a few customers at the bottom of the world to a global enterprise worth billions of dollars, servicing more than 600,000 subscribers. You’re either all in or all over the place.
3. Energy and a passion to win are half the battle

When business owners are energized about their companies, they create a sense of hustle. They are passionate about the product, the customer, and especially the people.

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