I was able to compile a list of 3 persistent reasons why businesses fail and if you are a business owner or you are just planning to take up the challenge you can learn from this.
Lack of focus
The first reason I am going to talk about is lack of focus or specialisation or they are just trying to expand their business really fast. Many businesses have failed due to the fact that they want to concentrate on so many things at once. Apple started by just producing computers alone, they were focused on just producing a single product. Google also started as just a search engine. All big companies out there all started small, so if you are going to learn from the successful businesses you have to start small. Growing slowly but steadily is always profitable for accelerating from 0 to 100.
Inability To Standout
You should be well aware that any business you want to start now, there is surely a strong competitor out there, so what is going to make your own business stand out? You must have a clearly defined Unique Value proposition. UVP is a clear statement that describes the benefit of your business, how you solve your customer’s needs and what distinguishes you from the competition. Businesses fail because they blend into the background, there is nothing creating an exponential buzz about them.
No Proper Marketing Plan
To me this is the most important of all, maybe because I am a marketer, you might have actually gotten over the previously discussed issue but no business will succeed without the right marketing plan. The main reason for setting up your business is to make money, sell your products and services to some people.Ok, do you have the right plan for this? Do you know who is going to buy from you? How you can reach them and how to persuade them to buy. Have a good marketing plan before starting your business.
Before you also start any business you should try and acquire enough skills needed for day to day running of the business. Always ask for help when needed, don’t be too proud to seek advice and networking is also an important gem for your business survival, In my recent discussion with someone he said his business failed because I don’t know how to network if I am going to start another business the first thing I will do is to hire a communication expert to handle all external communication”.