Ten Reasons Why Most Businesses Fail
Every single day, new businesses are coming up all over the world. Due to the bad economy, a huge number of people are turning to entrepreneurship and starting businesses on their own. However, a vast majority of these businesses fail within the first year. And if they survive within the first year, around 95% of them will fail within the first 5 years. But why is that? Well, there are many reasons why businesses fail. They include:
– Poor management
– Bad location
– Lack of a business plan
– Not enough money
– Lack of a website
– Over expanding etc.
If you want your business to succeed, take a look at the following 10 reasons why most businesses fail and avoid making these common mistakes.
Lack of a business plan
Many businesses don’t have any kind of business plan and yet they have a website. In other words, they put the cart before the horse. Make sure your business has a business plan before you build a website.
It is no surprise that there are so many businesses out there that are run by people who have no idea of how to run a business. Do not embarrass yourself. Get some education first, before you start a business.
Let’s face it. It is almost impossible to start any business without capital. That being said, thanks to the internet, you don’t require as much capital to start a business as it used to be. But you still require capital.
Poor website design
In business, the first impression is very important. But many businesses present a poor website design as their first impression. Website visitors are very impatient people. They won’t hang around and try to figure out things. They just click and move on to another site.
Poor product or service presentation
Perhaps you’ve heard the saying that goes, “Presentation is everything”. Therefore, the success or failure of your product/service depends on how well you present it.
Lack of advertising
You may have the best product in the market, but if you don’t advertise it no one will know about it. Therefore, you will not make any sales.
Failure to ask for the sale
Some businesses make ads which present their case for customers to buy their product, but never ask for the sale. Only household names can afford to do this. Otherwise, new businesses should ask customers to try their product at the end of the ad.
Being in business solely for the money
Businesses that exist only for the money approach business completely different from those that exist to serve customers. Don’t fool yourself. Customers can see the difference. If you business is in it only to make money, customers will avoid it like the plague.
Failure to learn from mistakes
Some businesses keep making the same mistakes time and again. Well, it is important to learn from your mistakes. Do not continue repeating the same mistakes and expect to get different results.
Failure to capitalize on trends
Things change quickly on the internet. But many businesses fail to recognize and capitalize on change. For instance, Twitter is the hottest trend now. So you should take advantage of it. Make sure you capitalize on the latest trend, even if you don’t like it.