Starting a Business is very Easy, compared to Running a business.
So many studies say, that over 90% of Startups Fail. And this really is a big number.
Even a huge percentage of small business close down within 3 years of the formation.
So, there must be some real problem which is leading to all these.
Now, there are actually many reasons behind the failures but there are also some common one.
Today we will discuss the 5 Reasons Why Most Businesses Fail.
Hopefully, this will give you some insight so that you can possibly avoid it.
5 Reasons Why Most Businesses Fail
1) Lack of Vision – It is the reason why a business has actually been started.
Yes, this is true that the main goal of a business is to make a profit and grow. But, a business without a Vision will never get the opportunity to make anything.
It is very important to know What the company is headed to.
You will see that most of the Big companies who have been serving people for Years have a Very Clear Long Term Vision.
That is their driving force. This is what business is all about.
It is not about the numbers you will make but a little more in-depth.
Think about it in this way, what actually, you want your company to be.
What will be the impact it will have on others? What will be the worth of the company? How many employees will you have and all that!
This makes everything Clear and thus help all in your business to understand and know the purpose.
Yes, it will take time but it is super necessary for you to thrive.
2) Poor Understanding of Market Needs – Customer is KING.
It is what business relly upon in order to stay in business.
As a business owner, all you should look after is how to cater your customers in the best possible way.
And how it can differentiate your company from others.
The company who tends to do badly in their business majorly happens because they ignore their customer.
They stop listening to their needs as they grow. This is actually a very common reason that leads to failure.
Taking market feedback, learning, adapting and making your product the absolute best for the customer is the key.
You have to know the customers.
3) No Strategy – The way you approach the business is really important.
You have to make a strategy before you even step into the game.
There are many who are not very good with strategy and it okay not to make the most sophisticated strategy as you begin. but even a really simple plan of action is very necessary.
Look, you need to know your goal and the way you can achieve that. It should at least give you a roadmap to proceed with.
The way you make and amend your strategy at the right moment can dictate your success.
4) Inability to Sell – No matter what your industry or products is, you have to sell in order to survive.
Different industries might give it different names but at the end of the day, if you have a product or service, you have to sell.
Cashflow is the oxygen of a business and you have to sell in order to bring in money.
Here is where many businesses fail. They just don’t know how to sell.
No matter how good your product is, if you are starting out, you have to sell in order to make people know about your product.
Look there are so many products and services out there in the market, thus nobody really has the time to come and find your product. You gotta sell them.
This is by far the most important skill set that an entrepreneur should have.
Selling is what we all do and it kept us going.
So you have to sell no matter what happens.
5) Hiring the Wrong People – This is a real problem and there is no particular method to solve this one. So this can only be solved by your intuition. You will eventually find a way to distinguish.
Finding the right people is very difficult but when you find it, keeping them is your responsibility.
An employee is a very important part of your business.
They are the one who is taking care of the major parts and thus having a good one is super important.
A bad employee can cause a real problem in your business and even make your other good employees to leave the place.
It is a very very delicate space and so you have to know what exactly you are looking for.
Even though there are certain character trends that tend to do good in different parts of a company, so try to find and establish them.
Once you find it, just keep repeating and adjusting.
So these are the 5 Reasons Why Most Businesses Fail. Hope it is clear enough!
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