Most of us have engaged in one business or the other and it flopped and we still can’t figure out what happened, every big business start small and there’s a sure tendency to fail, but how consistent are you?
Failure is not to be feared. It is from failure that most growth comes.”
So if you have failed in your business and you are confused on the reason why you failed though scared of starting again, I would summarize the reasons why businesses fail in four ways below:
- Lack of market for their products or services:
42% of small businesses fail because there’s no market for their businesses or product. Business owners fail to prepare for the marketing needs of their company. Marketing is very essential for any business to grow more especially at the early stage, Similarly, having realistic projections in terms of target audience reach and sales conversion ratios is critical to marketing campaign success. Marketing needs is a preparation which must be made.
- Ignoring customers:
When you start having customers at your early stage in business ensure to guard them jealously.If you ignore them at early stage it could spell doom. I have witnessed where a customer was complaining that the goods she ordered for after payment had not arrived in days, now I saw it in the comment section. Do you think you can be able to place an order when you know that those who placed their haven’t received it yet? The answer remains No! When customers use social media to complain, it’s usually because a company already failed to satisfy them through traditional customer service channels. They’re also incredibly angry, so provoking them further through inaction is ill advised. Don’t forget there are many more out there who wants to connect with you.
- Having the wrong team:
I quote, “None of us, including me, ever do great things. But we can all do small things, with great love, and together we can do something wonderful.” – Mother Teresa
Team work makes the dream work let’s not forget that. How can you work with people who do not have the same vision and mindset with you? Bad management can impact employees and a company’s overall operations. Incompetent managers exist, and they can have challenges relating to staff members and keeping them motivated. Bad management has caused organizations to permanently close their doors. Poor leadership results in high turnover of employees; the cost of recruitment and training becomes prohibitive, which can impact a business’s ability to continue operations.
- Poor capital:
If you are not ready don’t start. Start small doesn’t mean starting unprepared. You must be financially prepared in other to enjoy the work flow of your business. In most instances a business owner is intimately aware of how much money is needed to keep operations running on a day-to-day basis, including funding payroll; paying fixed and varied overhead expenses, such as rent and utilities; and ensuring that outside vendors are paid on time.To help a small business manage common financing hurdles, business owners should first establish a realistic budget for company operations and be willing to provide some capital from their own coffers during the startup or expansion phase.