Before building a business, there are so many things that need to be handled. People neglect some of the most basic needs in order to compensate for another need. This is when things go wrong and businesses fail. Here are the top 6 reasons:
- No proper business plan
It’s a terrible idea to start a business without thinking about EVERYTHING that’s needed to succeed. Before starting, write down your short-term and long-term goals, finances, required equipment, and promotions. If you don’t plan any aspect of your business, you won’t know how to handle the situation when something goes wrong.
- Neglecting finances
Finances are a major part – it helps keep your business flowing. You don’t need to have an accountant but you MUST keep track of your finances. Without it, you’ll most likely overspend and not know where each fund was placed. Save yourself a headache in the future and plan ahead.
- Not focusing on competition
Usually competition can be ignored but if you’re just starting out, you should be checking what they’re doing and what’s working for them. If people are going day after day to their business, figure out what’s making them unique to their needs and try to build your own plan to grow your business. If you don’t have any competition yet, always be aware of what’s going on in your neighborhood.
A brand new business in your niche can show up one day without you realizing it and this is when you must stay on top of your customer service and listen to your client’s requests.
- Wrong location
You chose a location where you want to work, PERFECT! But people are still not coming to check you out. What’s the deal?
The best thing to do is to consider where your target audience is and place your business where it’s VISIBLE and CONVENIENT for them! A cheaper location that’s farther from your targets won’t help you retain clients since it may be too inconvenient for them to show up. Think strategically!
- Not online
Everyone is on social media now! It’s where potential clients can check on your business and see if they should take their needs to you. Grow your social media accounts, build a website or landing page, share the right hashtags, interact with people, and you’ll be acquiring more clients than you thought.
- Fear of changing
So, your business succeed for the first five years and now its hit a snag. Instead of dwelling on what’s happened, try to move on with a second game plan to keep moving. Change is difficult but if there are things changing the way people think about your business, then try to change while keeping your values on your side. Sometimes change is good and necessary to grow.