India has seen many booms in its economy, still a number of companies were born and they ended up in dust, why? Are the Indian entrepreneurs not fine tuned to coping with the global business scenarios? I guess yes. There can never be any other reason why business houses, large companies have closed down. One of the reasons that small businesses face is that they are usually cash strapped and thus fie a pre mature death due to lack of funding. In such cases it is advisable entrepreneurs believe in their idea and persevere wit it if they believe there is a large market for their product or service.

A number of businessmen have pointed out that young entrepreneurs give up on their business idea with ease and that is why they are not able to come up with fresh innovations and leave that to the west. Indian business houses prefer cashing in on the technology that comes from overseas and they use this technology, these systems and methods to run their organization. That is why business houses close down within no time because they have not fine tuned their business model based on the needs of their customers, employees and business atmosphere.

Business houses also fail to realize the potential in their own employees. Many business houses loose employees as these employees move n o organizations that offer better salaries. It is thus advisable that entrepreneurs are aware o all the expenses that they may have to face and be financially prepared for all these issues as these are the things that can totally destroy the company.

It is also advisable for companies not to hire experienced top level management as these only increase the overhead costs and senior management come with certain beliefs that they have learnt in their previous tenure, this prevents the company from innovation and thus is a major road block to the development of the enterprise. I would thus advice entrepreneurs to be very particular about their expenses, analyze and make sure you have forecasted all costs. When ou go for investment take a little more than what you estimated to be on the safer side.

Article Posted By : ceorahulgonsalves  On June 20, 2012lView All Articles

CEO and founder of www.naashtapaani.com with a keen interest in HR

Article Source :

http://www.veethi.com/articles/business-strategies-article-778.htm

Keywords :
business , HR , knowing your business