When you run your own business you may always worry that you won’t be good enough and your business will come crashing down. While it is not good to think like this, the last thing you want is for your business to join the ranks of other failed businesses. Building a business from the ground up doesn’t have to be tricky. Here are 5 common reasons why businesses fail so you don’t make the same mistakes as others.
By Team Savant
Illustration by MOMO Studio
Economic Factors
We all know that the world has been hit with an economical crisis lately, everyone is feeling the pinch. Businesses are also being hit hard as without customers they don’t have any profits or sales coming in. Consider what is going on in the world around you when you are setting your prices and holding sales. You may find that you make more money if you lower your prices, but you also don’t want to enter any bidding wars with your competitors.
Poor Customer Service
Another thing to consider is your levels of customer service within your company. If you are expecting your customers and clients to wait over three days for a response to their questions and queries then you are going to get some negative press. This could even cause people to use your competitors as they assume you don’t care about customers' needs. Try and aim for a quick turnaround when it comes to answering questions, queries, and complaints.
Lack Of Money
Something else to be aware of is how much money you are burning through when first starting a business. Many businesses fail because they have simply run out of money. Knowing where to spend your money and how to budget can be tricky. Once you get it right, you will be flying high waiting for those profits to start rolling in. It might be worth speaking to an accountant if you often find yourself falling short with outgoings.
No Networking
You might think that you can get by in the big world of business without networking or attending various networking events. While this is true for some businesses, if you are dependent on other companies and customers then this is what you need to do. Failing to network means you may be on your own when it comes to your business when you could be building amazing links and connections with others. If you are wanting to organise your own networking or corporate event then you could consider somewhere like St Osyth Priory.
Wrong Marketing Strategies
Finally, when you run a business you need to be sure that you are using the right marketing techniques. Using the wrong ones could mean you aren’t reaching the audience your business needs to flourish. There are so many out there, it may take some time deciding the right one. For example, if you are an online based business then you don’t want to be wasting money distributing leaflets in random areas. You won’t attract new and existing customers doing that, instead you could try using video marketing or social media.
We hope you found this article helpful and that it gave you some useful ideas on how to prevent your business from failing. Taking the time to get everything right from the start will lead to a business that thrives and stands the test of time.