The COVID-19 outbreak, which was declared as a pandemic by the WHO on 11 March 2020, concerns not only human health but also society and the global economy. Because of the important restrictions and measures declared by states in order to cope with the pandemic crisis, companies can have serious economic consequences.
In this process, the role of the managers is highly vital. Hence developing risk management practices and applying them can be experienced in the company’s activities to take measures to mitigate the impact of disruptions and ensure that companies’ validation.
The failure of the company to successfully exit this process undoubtedly brought a detailed examination and evaluation of the decisions they have taken and caused the company to go bankrupt.
Mohab Ayoub is mastermind behind many exclusive projects and enterprises. Moreover we heard him with Algedra Design and related companies Algedra Group. But he successfully managed many more companies during the pandemic while a huge amount of companies went bankrupt.
The Gap Due To Bankruptcy
Mohab Ayoub ‘’Turning the focus on bankruptcy news into an advantage is among the most important steps that can be taken. Although it has great spirits and a risk-loving audience in entrepreneurship, it is also possible to achieve goals with small steps. In this period when restaurants are frequently closed, the demand for companies offering delivery to homes in the name of entrepreneurship is increasing,’’
‘’In fact, this gap created as a result of bankruptcy is filed by companies and individuals and an advantage has come along the way.’’
Business Attempts
Considering the rate of those who can successfully exit the initiatives that have been initiated, you better understand why the above mentioned features are needed. So where does the difference between success and failure really come from? Are the characteristics of the founders as decisive as we think at this point?
‘’While many companies are going bankrupt due to both disagreements and economic reasons, I think it would be useful to review the reasons of success and successful exit in more detail, which some indicators can give you early predictions about success or failure.’’
In this article, we will explain the reasons that lead to failure and briefly the signs of failure, guiding us with Mohab Ayoub’s successful entrepreneurship experience.
1- Starting the Initiative Without Solving Problems
One of the main reasons for failure is to start your business before problems are fixed. This wrong approach may result in major failures. The entrepreneur should start to create everything within the framework of a plan, slowly, if necessary, without hurrying.
Starting the business before a few basic problems have been resolved means taking great risks. Although the concept of risk is presented in a slightly softened form when talking about initiatives, the risk we mentioned should always be kept to a minimum.
In some cases, founders desire to get things started as soon as possible. I’m sure you all heard the concept of Lean Startup. This approach tells us that it is more impeccable to launch the product of minimum value in working condition.
2 – Being Missing or Over-financed
One of the necessary conditions to start entrepreneurship is capital. You must have enough capital and use it in a planned manner. However, regardless of the sector, whatever type of company you open, be sure to start entrepreneurship with more capital than you need according to the needs of the company you will establish. Underfunding can cause serious problems, inability to cope with customer demands.
Too much capital as well as lack of capital can have severe consequences. As a matter of fact, the entrepreneur can start with too much capital to ensure early success and get things right.
However, as we mentioned at the beginning of our article, success in entrepreneurship does not come immediately. Despite the motivation and commitment of entrepreneurs who have spent large amounts of money and still have not been successful may decrease over time, so this affects other employees of the company and significantly reduces work efficiency.
3 – Ignoring (a) Customer Demands
Customer satisfaction and demand are always vital. A business organization needs to prioritize what their customers want and need. However, there are also commercial organizations that do not act with this approach.
In other words, these companies that put only the company and entrepreneur vision in the foreground put the customer in the second plan. In fact, if you do not take conscious countermeasures, you may not even realize it is doing it.
However, this is a very wrong move, because over time, when customers realize that they are not valued, you will cut off from your company and you will lose those customers.
Naturally, failure will come. The entrepreneur should always be customer-focused, not put their customers into the background.
4 – Not Learning from Others’ Mistakes
Not every attempt is successful. Another mistake made is to follow successful entrepreneurs and try to imitate them. This is not actually a wrong move, it is not paying too much attention to attempts that result in failures. It is as important to analyze the causes of failure as well as to chase success. In this way, you can see where and how mistakes were made and you will try not to make by learning from these.
Sum up;
As can be seen, there are many factors that affect failure. You should take into account the signs of failure described in these four steps, embrace entrepreneurship, make your plans in the best way and not be hasty. Otherwise, you may take too much risk and possibly fail.