3 Pit Holes of a Successful Business


Successful business shine like the sun, and the world thinks that they are destined to write only new landmarks in history. They are idol for the other businesses, and people admire their strategy. However, the planet has the most interesting evident fact: everything is prone to downfall or destruction is not managed correctly.  Several pit holes can suck a successful business. It is better to know about them and do things to avoid them.

1. Over confidence in extravagance

Humans have the tendency to overreach on occasions they feel successful and happy. Whether it is an individual or a business, we humans love to flaunt and talk without any sense (sometimes) and take foolish actions. But no matter how established a commercial entity is, overconfidence is dangerous.

  • A counterpart in the market launched a new scheme or offer, something like getting a gold coin with every pack of the product. You, as a successful business, can also do that. But if there are any better plans for future goals, then do not imitate your competitor.
  • Giving comments in the media that are issue creating or personally criticize people badly can be a foolish step. Even your most loyal customers may not like it. To avoid this practice, focus on the work of people. If they have done something progressive, then a better approach is to appreciate and not do it. At least use your words smartly.
  • Do not underestimate anyone in this world because we are in the era of globalization and advanced technology. The customers are very smart and unbiased. They embrace even a start-up as openly as they do with the established businesses. The better thing is to move walking at your normal pace and earn success because you can be more competitive. A business may present itself as the best fashion brand of the best finance company in the instant loans for the unemployed, but overconfidence may cause mistakes.

2. Growth too quick to tackle

Exactly, speed kills whether it is on the road or in the business success. Growing too fast can be the biggest cause of a sudden speed break and spoil the efforts invested for further success.

A company that got the unprecedented sale in years may want to expand to new locations now and spend hugely on marketing. But is the business ready to fight on so many fronts? With profit, any business owner may want to get a larger share in the market, and for that, the company needs to move faster than its normal convenient speed.

  • In the above example, the lender of instant online loans in 15 minutes might want to offer new deals and considerable relaxation in the interest rates. The recent large number of applications drives the decision. But is the relaxation is right? May be yes, maybe no. What if it does not show the results the owner expected.
  • After a quick growth, the business wants to expand faster, launch new products, make a new joint venture, get more prominent clients, etc. This step can sound progressive initially, but that may not make a good harmony with the financial capacity of the company, and its roots may start shaking. 
  • The speed of growth should always be in control because slow and steady wins the race even in this fast, modern world. A business is destined to stay for a very long time in the market. It cannot be restless like a salaried individual thirsty to get more and more salary hikes with frequent job switch. One day, he will be rejected due to stability factors in the career.  Businesses also need to work on their career strength.

3. Fighting a price war forego

It is absolutely suicidal for any business, no matter how successful it is. A commercial decision made due to ego can never live a long life. Especially when it is about the price war, one needs to know how things work. You cannot be careless on this part because right away affects the financial condition of the business.

  • What about the safe play strategy? Every company should have that on the pricing part. If your product or service has the right quality, people are ready to buy it even at a higher price.
  • You sell a product and the utility that exists in the product, and if that offers the borrowers an uncompromised service, success is sure to stay. Otherwise, no matter how cheap are the services, a company cannot get success.
  • Always work on your individual strategy on pricing. It is necessary to follow the market but at the same time do not forget the risk factor. You are working for the customers and not fighting a war every time with the competitors.

The above points explain why and how a successful business can turn into a dead one. Some mistakes are easy to handle later, while some are not. You need not make anyone of them.