It usually seems that wrong things are happening more in life than right. If you change direction with every shock you get from the market, then you will confuse the team with yourself. If you are in the stage of ideation, then write all the research related to it along with all the available resources. After this, analyze the market for at least one to one and a half years, only then take a decision. The tendency of consumers is always towards attraction towards companies with continuity. In this case, think enough before beginning and then be firm on your decision.
4. Reluctance to delegates
Managers are accountable for the actions of subordinates, and this may make them reluctant to ‘take chances’ and delegate tasks.
Some managers may simply be too disorganised or inflexible to plan ahead and decide which taskü should be delegated to whom or to set up a control system so that subordinates’ action can be monitored.
In the short run,this lack of confidence may be justified if subordinates lack knowledge and skill. In the long run, there is nojustification for failing to train subordinates. Managers who lack confidence in their subordinates—perhaps because of an inflated sense of their cwn worth will severely limit their subordinates’ freedom to act.
5. Bad Product Quality
Quality of product plays a vital role in success of manufacturing concern. The quality of final product depends on the quality of material used to make it. Besides the latter of affects the cost of production also. Quality involves such considerations as materials, workmanship, grade, size, design, color and pattern.
Many large companies keep well- equipped laboratories for checking the quality of the materials and goods produced. Quality control of materials helps to cut down the waste of raw materials, labour costs and overheads on account of specified work.
6. Quantity of products
The temptation to buy large quantities of materials is strong due to such advantage as lower prices, discount, promote delivery, etc. But bulk purchasing is not always possible. Large scale purchase can inflict losses in the form of tying up the capital and losing interest thereon, wastage and deterioration, obsolescence, high cost of insurance and storage, etc.
It is generally believes that materials should be purchased at the lowest price so cost of production is minimised. But quality of materials so purchase may be doubtful. Also the delivery maybe irregular.
8. Time of delivery
The time element is an important factor in organization. It is essential that all materials arrive in time, so that there is no delay in manufacturing. The dates of delivery therefore, influence the choice of suppliers. If business is active and large order are on hand, it may be advisable to pay even slightly higher prices for timely deliveries.
9. Evasive attitude with life plan
It is important to always be clear about your life. As an entrepreneur, if you think that you can make the company faster by reducing your own salary or grooming expenses, it can be a big mistake. If you are able, then spend enough on yourself. Instead of fulfilling a wish now, if you are planning for a day in the future, which is unknown, then it is not a good way to live life. Eventually, it will affect your business as well.
10. Calculating future earnings
It is not right to focus too much on the returns you get at the beginning of any business plan, as circumstances can change your estimates in a single day. Starting a business with valuation in mind is the same as driving a car in front of a horse. Instead of focusing on user volume and return, it would be more beneficial to work on things like operational excellence, client advocacy, user design and cost control.