It’s so sad that 8 out 10 businesses fail within the first ten to eighteen months after start up. Failure is something painful and can lead to distress. All this can be avoided if proper planning is done at the beginning.
But before that,
- Not investigating on the Target Market and competition
So you want to start a business without investigating who your competition is?
That’s the starting point of all your problems. Proper research before starting a business should be done to determine if it worth taking the risk or not.
To avoid this Find a need that is unmet then work your way out to solve it.
- Poor Planning
Poor planning is the main reason why a business fails. Without proper planning goals will not be met. A plan should consist of only realistic goals and how your business aims to meet those needs.
Through proper research and surveys, you will be able to determine if the business if worth giving a shot or not.
To work your way out of this make sure you have a solid plan at the beginning.
- Bad Local and Internet Presence
Nowadays, if your internet presence is bad that is equally bad as having a bad local presence. Have a good presence on social media sites for example on Facebook you can run some simple ads on Facebook to help boost our online presence and meet potential buyers.
- Expanding your business too fast
If your business has grown, take some time to think about what you want to offer. The new services and products you want to offer.
Without proper tests, this can lead to drainage of funds.
Make sure you do a thorough research which will show that the time is right and funding is available.
The key thing here is to have a strategic plan.
- Failure to communicate well with your customers
Proper communication with your customers can increase conversions. Knowing the right words to use may be the best way to having a deal closed. Most entrepreneurs have good products and services, the problems come in when they fail to communicate what they offer properly.
Avoid this by learning how to express your service and products. A good way is by explaining to potential customers how your products and services will benefit. That’s the easiest way to seal a deal without having to appear too salesy.
- Lack of Unique proposition
If you constantly do what other people are you doing you will get the same resulting they are getting. In business to get more customers, you need to do business in a unique way. Have a unique way of handling customers and how you offer services.
Offer quality products and services to gain a long-term relationship with customers. The same customers will grow your business by referring your services to others.
To cut the chase, the poor unique proposition will lead to failure of your business.
- Poor Business model choice with unproven conversion streams
Choosing businesses which do not convert leads to failure. As an entrepreneur, you need to take your time to identify proven businesses that will make you profits.
This actually calls for proper research before investing time and money in any the business.