Starting a business is like strapping into a rollercoaster ride of a life time; the ups and downs, the unexpected turns, nauseous-ness – I guess you can say it is a one-of-a-kind experience. However, 8 out of 10 small businesses fail every year. Where did they go wrong? Where did the rollercoaster come to a complete stop? Here are the top 5 reasons why new businesses fail.
1) Online Marketing: Using online methods such as SEO, video marketing, and social media marketing, businesses can seize the opportunity of targeting their desired market and increase their online following
2) Listening: Word of mouth is the most powerful tool for business recognition and ensuring customer satisfaction – your customer is the key to success for your business. Businesses want to keep the communication lines open, listen to what their consumers have to say, and create trust-based relationships.
3) Lack of Planning: Having a business plan is vital – those businesses who are failing can most likely blame the planning stage. Skipping “minor” steps, ambiguous planning, and unrealistic strategies are all symptoms of an unsuccessful business
4) Differentiation is what a business needs to stand out from the crowd and make a name for themselves. What makes your business unique? What are your features, advantages, and benefits that blow the competition out of the water? Quite frankly, the bottom line remains: why are you the better than the rest?
5) Not every business owner is going to possess a business background or management expertise; therefore business owners must understand their weaknesses and hire individuals to help. Neglecting the business is a considerable pitfall and has the potential to defeat a company – taking care of major-to-minor parts of the business is a necessity to success. A leader should keep up with the trends that are affecting their target market by understanding the present and future outlooks of their consumers.
1) Lack of online marketing – 0:25
2) Not listening to consumers – 0:55
3) Lack of planning – 1:41
4) Be different – 2:21
5) Leadership Failure – 3:39
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The information provided in this video is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. All figures and dollar amounts are used for example purposes only. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided in this video.