1. Failure to Meet Goals
Top 12 Reasons Why 70% Businesses Fail.A business model that commits but fails to deliver timely to its customers will lose their trust. This will only push them to engage with your competitors, which is the last thing you want. The delay could be due to several reasons, from a lack of stock to a delay in transportation. Keeping an effective check on inventory and investing in an efficient route planner are some of the easy fixes you can do to make sure you deliver what is promised.
2. Your business does not add much value
Today’s market scenario is such that competition is huge for any business. If you are selling a product, you have to make sure it delivers more value than your competitor’s product. If that does not happen, you may not attain a dedicated audience, which could be detrimental to your business.
3. Lack of uniqueness
If you entered a business where the competition is high, the chances of your failure would only increase rapidly. You have to stand out and be better than your competitors by offering a certain unique feature that they do not. Having the edge over others is only going to save your business in such a case.
4. Unable to Keep Up with Demands
If your business has grown faster than you think and the demand has rapidly shot up, you may be unable to keep up with the rush. Or you have assumed your product is going to be a hit and ordered too much inventory, which is now collecting dust in the storage area. It is tough to really know your product’s demand in advance. Doing thorough market research can give you some idea of your product’s demand.
5. Poor Leadership
Most businesses are started by entrepreneurs who lack experience in the business world. If you are a newcomer to starting a business, it could overwhelm you over time. Learning about a dicey situation and being in one of them is tough. These newcomers are not ready to face failure, which is bad for any business as failures are bound to happen. What matters is how to bounce back. Only strong leadership can lead a company to profit.
6. Inability to Connect with the Target Audience
Your business’s success and failure highly depend on how you engage with your customers. It is not just about selling them your product; it is about developing a long-term relationship. Once you have sold them your product, your job is not done. Engage with them by encouraging them to participate in a survey. Keep them in the loop by using email marketing and offering them a special discount for repeat shopping. If they are not happy with the purchase and get back to you, make sure to address all their queries.
7. Not focusing on ROI
Without focusing on increasing return on investment (ROI), any business model is bound to fail. Relying on just organic traffic for your business website is ignorant. Conversion optimization includes paid promotions to get more traction online. Your focus should be to make sure what you spend is worth it when you return your ROI. This will also help in creating a customer base for your business.
8. Inability to Control Finances
Getting a hold of business profit can be exciting, and if you are not careful with the cash flow, then finances could easily get out of hand. Remember not to use the company’s money for personal expenditures and to use the money only to grow your business further.
9. Scaling up too quickly
Scaling is actually good, but only when you are ready to handle the financial pressure. If done prematurely, you will spoil something good. Like hiring more employees or opening several branches, this can add up to your expense sheet, which your business model cannot handle right now. Scale up slowly and steadily when you are ready.
It could be your aim to expand the business into several verticals, but there is a time for that. If you have been unable to maximize the existing market, do not enter any new markets. You have to master the field in which your business is right now to deliver value to customers. Once the brand name has some value, opening and sustaining new verticals is a better idea.
11. Not Working on Customer Feedback
You may be the best in the market, but there is always scope for improvement. Your customers may be happy with you, but for sure, they will have some feedback to improve your product or services. Take these feedbacks really seriously and work towards improving your business standards, as your competitors are doing the same.
12. Failure to Create an Employee Culture
A company headed by you cannot be profitable if the employees do not align their work goals with the company’s mission. For long-term business success, you need to create a strong employee foundation to help you steer the company towards huge success. This can also happen when you hire wisely and keep employee interests in mind, along with the company’s interests. Too many employees leaving your company will add to the expense of rehiring and training them again. So, build a strong foundation of a bunch of people who would like to work with you until you reach your goals.