To determine and analyze if a new business can succeed or fail depends on the entry levels of the entity which it enters and exits respectively.
Majority of the businesses start small and expand accordingly based on their profitability. Only a couple of large scale business entities are able to start a new company on a large scale with a huge financial budgets.
Most aspiring entrepreneurs often fail even before they could even get a foot-hold and have the business steady and running.
There are a couple of entry levels that clearly demonstrates if the business will succeed or fail based on the entry in the short term perspective if the business owner doesn’t change strategy.
I hope this entry helps individuals in determine the level of start ups they are able to start, and come up with the necessary strategies required to take the business to the next higher level.
Size of financial ability determines probability of success, and most successful enterprises often acquire other businesses to get a head-start.
Level One
It is what many new business owners start and fail in, the term used is a start up. Before the business can even start operation (like a plane unable to start) the business face a couple of difficult problems in preventing the entity from even moving forward. Critical problem such as financial is the main concern restricting the even the growth.
This is often a one-man-show (OMS) business where the owner does anything and everything, left on their own to prove their worth.
Level Two
Start up business owner has minimal capital and him/herself to ensure the business is even able to continue operation into the first year period. Having to pay for products, services delivery fees, rental and their personal expenses. Funds are depleted much faster than predicted and the business close its shutters permanently having to repay their loans with installments, keeping them away from re-entering the business arena.
Also considered a one-man-show operation, but at times, they may only be able to hire another part time assistant to help out with the business. Future is not guaranteed.
Level Three
Business has no issues with funding, able to meet estimated business expenses for at least three to five years of operations. The only issue is the inability to hire talents, and grow the business, reasons could be due to poor employment guidelines, no proper appraisal, employees feel unhappy and dejected in the employee in particular with the superiors inclusive of a destructive boss limiting the employees to release their potential and talents to their fullest.
This is what many employees may use as a learning platform to gain the experience they need to run a new company before going to a better company to help grow the business.
As for the business owner, he/she will take the experience as a tuition fee and gain experience to recoup more funds for another shot in the business.
Level Four
Entity has got no issues with both manpower and financial funding from investors, but the both the head and in-charge pays well, lets temporary succeed clouds their vision and take matters into their own hands refusing to listen to advices from the very talents they recruited and soon find business sliding down gradually until it is at risk of elimination from competitors who are hot on their heels.
An example of such a business will be the Blackberry who are facing intense and much stronger competitors such as andriod – HTC and iphone – Apple. Talents all flock to bigger enterprises, leaving the business in lurch, as Blackberry mobile apps have stopped development and is only on a demand supported basis, unlike bigger competitors who still have developers willing to create apps to create and spur new demand for the mobile phones with larger market shares.
Level Five
Enterprise has generally no problems dealing with both financial and manpower issues, but what’s left are those surround business expansion both locally and globally, low connections of important networks and help from experts in different fields to aid the growth of the enterprise to a higher level.
An example is how many overseas companies wanting to have a slice in the China market, Linkedin, Google having much difficulty penetrating market due to lack of local connections and poor support from the locals.
Level Six
The enterprise has got no problems nor difficulty in all aspects, pulling resources, funds, networks, and creditability based on excellent remuneration where talents are given room for flex their muscles and funds to even fail in order to come up with the next big thing both from internal and external sources by buying over potential businesses limited by funding issues.
Bill Gates is the only business for Microsoft to date that has no problems doing business in both Eastern and Western nations.
Popularity: 1% [?]



