Some businesses are successful while others fail – why is it so?
Research has shown that over an 18 month period of businesses that were surveyed, 80% of entrepreneurs did not succeed in their businesses. The worst case was not just failure but bankruptcy. For the most part, a lack of funds has always been the main cause. Is this financial mismanagement or is there another reason for this?
All businesses usually have a good start. Well, of course before they collapse. Some business owners just wake up one day and boom – their business is history. Consider the five reasons why a business may fail:
If you are an entrepreneur who is in a crisis situation or if you are someone who wants to start a business, take note of the following points.
1.) Customer Relationship . This is a crucial part of business. Some entrepreneurs do not value this and tend to ignore it altogether. This relationship does not mean you must be best friends with your customers. Too much closeness with customers might be a reason for abuse, so it is best to take the middle road and at least be reachable. Communicate with them and know their needs. What do they want?
There are many ways to communicate with your customers. When you market your business, you are communicating with them. Understand what they need and what they really want. The reason why the majority of companies hire CSRs or Customer Service Representatives is because they want to stay in touch with their clients. In this way, they will tend to stay with you. They may also help you find other customers through word of mouth because of your good deeds and service. They will always tend to talk to their friends and may even invite them to try your product.
2.) There is no distinction in the market . Your product does not stand alone in the market. Some other entrepreneurs might be selling the same item as you so you must be unique. Being more distinctive will make customers remember your product. Without distinction, your product will not be differentiated and will soon be forgotten.
3.) Clarity and conciseness . People especially the elderly do not need to Read War and Peace. They want brief, concise and clear information. Many entrepreneurs speak a lot about their products but fail in making their customers understand because they do not know how to properly relay their message. When you make a point, you do not have to make it long and wordy – a short, brief, complete and clear explanation is enough.
4.) No leadership skills . In business you must know how to lead and manage your people. Be someone who they can approach with respect. Teach them discipline. This is the most important part in running a business especially if you have staff. They must function with discipline. Without this, your business will suffer. You can also provide them with seminars or trainings.
5.) Marketing Strategy failure . Strategy is very crucial in business. If you do not know how to market your product, it will not be remembered by buyers. There are several strategies that you can use to promote your item.
The best promotion would be by word of mouth so always provide quality products and services. With this, your customers will be the ones to walk the talk.
The services you provide are necessary in your business, sometimes this is the reason why customers need you.
Being in business is not that simple. It is a challenging pursuit but always remember that there will always be ways to succeed. Say goodbye to business failure and use some of the ideas above.