A Few Reasons Why Small Businesses Fail!
Studies show that over 50% of small businesses fail in the first year and 95% of them fail within the first five years. Becoming a small business owner is an exciting phase but it comes with many challenges. Only a few succeed in that hard phase. What are the reasons why small businesses fail?
“Surviving is vital for your small business until you settle your roots and beyond that.”
What are the main reasons small businesses fail?
So, what are the key five reasons why Small Businesses Fail that you should look out for if you want to succeed?
01. Failure to understand your customers
You should know who your customers are. Identifying them is the important thing. They hold the magical key to the success of your business.
Understand what they want! Look at their expectations from their point of view to understand what they want. Reach out, talk to them, and win them, and you will earn your business.
02. Failure to offer something interesting
if your business is offering something easy to find, it will be less likely to attract sales and stand out. If you need to fight and survive, your small business needs to be special. Be unique. Give your customers something that they can’t find elsewhere.
03. Bad planning
You must know what you are doing and how you are doing it. Have a plan, a set of goals, and an expected outcome. You must have a written business plan, which should describe the following facts.
• Your business
• Mission & Vision
• Budget
• How many resources do you need
• Your market and competitor analysis
A business plan will guide you toward the correct path.
04. Lack of communication
People need to know about your business. Like the announcement of a newborn baby, you need to tell the world the happy news. Social media today is like a magic wand that you can wave and get things done. Tell the world what your small business is all about. Keep them updated.
05. Complicating it
You are an entrepreneur. You must be overflowing with amazing ideas, But don’t try to put them all on one plate at once. Be simple and clear. Go from step one. You will be able to pull out all your ideas and turn them into something valuable. But at first start from level one Know what your business will offer. Know what makes it stand out from others. Know your strength and weakness!
Read this post by Forbes Finance Council on “what percentage of small businesses wail & how can you avoid being one of them?” here.
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