According to studies, nearly eight out of ten businesses fail within the first year and a half. In fact, the younger the company is, the more of a chance that it will fail. Even with an excellent service or product, how you approach your target market might be the cause of failure in your business.
While the reasons of failing are too much and shared, here are five reasons why business fail.
The lack of problem is one of the leading causes of failure in markets. Entrepreneurs often put more focus into achieving their financial independence without ever taking t necessary steps towards building a strategic business plan.
Lack of Capital
Starting a business without the proper amount of capital funds will cause new business owners to fail due to unpredictable cash flow. It is important to determine just how much money you need to cover the costs and keep the business running for the first twenty-four months.
Poor Leadership Skills
Your business failure can be a result of poor direction and management skills. If you struggle as a leader, chances are you don’t have enough experience in the business. Companies often fail due to poor staff supervision, management decisions, and motivation to lead your brand.
Having poor management skills will affect every aspect of the company – from employees to financial management. Examine how other businesses in your industry practice and which techniques you can use for your business.
Failure to Promote Business
Another common reason why many companies fail is due to the failure of promoting and marketing their business. It is importance to have your message be heard to put yourself ahead of the competitors.
Building a vital business model without an active leadership may lead to the lack of revenue and implement the idea that there is no strategy taken place. To prevent this, develop a complete business plan that will include financial analysis of income, marketing strategy and management solutions to overcome competitor obstacles and activities.
Increase your chances of a successful business by preparing not only your team but also your market. Find out what your competitors’ strengths and weaknesses are and how you can take advantage of this knowledge.
Entrepreneurs are always on the look out to find new business opportunities. But no matter how good these occasions might sound, they often end up costing money due to significant overhead expenses, small margins, and scalability.
However, with an online business, you won’t have to follow the traditional path. Here are three reasons why start an online business will become your best investment.
Online Businesses Have Great Scalability
Not all businesses online will automatically turn into a successful establishment. However, just as scaling any business isn’t easy an online business gives you a better advantage. While a physical retail store has an audience that reaches the radius of the business location, an online retail store has no restrictions as their market will get to the public worldwide.
With a successful marketing strategy, your online business will be well promoted and increase its budget as the target market begins to grow.
Online Businesses Provide Freedom
Most entrepreneurs are attracted to online businesses due to the freedom that it may offer. With today’s modern technology, a few web tools will allow businesses to operate from anywhere in any location. This means you can work on your business plans while sitting down at your favourite shop or even in your hotel as you travel.
The freedom to not being tied down to a set location empowers business minds and allows them to spend time on other ventures.
Online Business Will Give You Access to an International Market
The best part of owning an online business is the ability to run it on your terms. There are no boundaries and specific hours that are required for operation. With an online business, you can produce revenue anytime, even as you sleep.
Have you invested in an online business or looking to invest in the future? Comment below and share your opinions with us!
When it comes to using social media for y business, many entrepreneurs consider themselves self-taught without understanding the actual value of social media promotions. Even if you know the ins and outs of social media through personal accounts, you will still need to understand just how it works for your business.
Here are four social media mishaps you should avoid for your business.
Poor Trending Choices
Social media is full of trends. This allows you to take advantage of those trending topics. However, aim to keep posts appropriate and relevant to your business. You might end up posting something that may cause your followers to unfollow.
The main point of building your social media account is to keep readers engaged with your business. However, you do not want to spam their accounts. Post around five times a week to keep followers up to date or a tweet a day on Twitter.
While it is important to mention the next upcoming sales or release a new product on your social media account, that shouldn’t be the only feature you provide on your site. Stick with the traditional 20/80 rule by using 20% of your site for promotions and make your content engaging 80% of the time.
Lack of Support and Response
The main success of social media is to engage and communicate with your target audience. If you don’t interact with your followers, what’s the point of even having social media? When it comes to questions, complaints, and praise it is important to respond in a timely matter.
What other social media mishaps can you think of? Don’t forget to comment below and tell us what you think!…