Determinants of Success and Failure in New Business

Success or failure, these two are the only endpoint of a venture especially to start-up companies who are likely to do strategies just to survive. But failure is a tail of success. To succeed, one first has to experience failure.

Determinants of success and failure are:

Success

1. Teamwork -    "One team, one goal", working together to achieve business goals. Teamwork can build a good relationship within the team.
2. Leadership - one should have a good leader to manage the operations of a business, not just the operations but also the management itself.
3. Specialization - more likely a segregation of duties. An employee is assigned to a work depending on its skills and specialization in order for him to show a good performance in his work.
4. Big opportunity - at the heart of the process is the opportunity. It is discuss in the Timmons Model that a good idea is not necessarily a good business opportunity. It is, wherein, a good idea is being put into with the opportunity considering the market demand. Opportunity is really important for time to do with the idea or plan.
5. Resources - resources is really important for the business to survive. You first need to have all the resources in place, especially the money, to succeed with a venture. With these great resources, its easy then for the venture to attract investors to invest in the business.

Failure

1. Unrealistic goal - goals that are impossible to achieve can lead a venture to fail. With this unrealistic goal, the management will not function well and as a result, there will be a poor performance of the management as well as its business operations.
2. Underestimating start-up costs - some of the costs needed in startups are predictable but there are some that is not easy to anticipate and this situation can result a shortage of cash.
3. Depending too much on others - relying too much on a handful key workers can be a big mistake, and one that could even cause the business to fail.
4. Hiring wrong people - the problem of hiring the wrong people can keep coming back to haunt the business again and again. Bad workers could ultimately hurt, rather than help the business to succeed.
5. Less Communication - communication is very important in business. Without communication, information within a business will not be spread correctly and this could foster distrust or hostility from employees.

Feasibility Study could also be a determinant for success and failure of a new business. In such way,we will know if its feasible or not to build the certain project we want.

The people itself working in a certain business has the best and worst chances for success. In a way that, they are the one who work hard and doing their best just to bring their business into success.