Top 5 Reasons Why Small Businesses Fail

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Small BizDon’t let your business fail. Avoid these serious mistakes.

According to the latest data gathered by the Small Business Administration (SBA), about 66% of small businesses will survive during the first two years of operation. Despite the fact that this is more promising than the 80% failure rate claimed by other sources, the figures are still high enough to cause apprehension. Why do small businesses fail during the first few years? Here are some of the most common reasons why they do.

Lack of meaningful conversation. Most small businesses do not engage their customers in a meaningful dialogue. Always remember that your customers are the lifeline of your business. They hold the key to your success. So, if you want to accomplish your business goals, listen  to what they have to say, understand what they need, know their deepest pains and help them accomplish their goals. You can only do this by talking to them.

No unique value proposition (UVP). A lot of people start their businesses without taking the time and effort to differentiate themselves in the market. As a result, they stay at the bottom feeding on scraps with the rest of the businesses that, like them, do not have a unique value proposition that can help take them to the top. Avoid this problem by figuring out what you can bring to the table. Find out what sets you apart from the competition and let your target audience know about it.

Failure to evolve. If you are not continuously studying your market and making the right moves to adapt to the changing environment, then you are definitely putting your business at risk. Do research to learn how other businesses in your area managed to thrive and keep an eye on the trends. Learn to adapt to changes and do not be content with the status quo.

Not marketing online. Failure to market online means leaving significant amounts of money on the table. Just consider these figures:
•    80% of internet users use the internet to make a purchase
•    81% of internet users do an online search before making a purchase
•    Retail e-commerce sales in the US from 2002 to 2014 amounted to $236.9 billion

Lack of strong leadership. Realize that as the founder of the business, you need to be a great leader. Learn everything you need to increase your chances of achieving your business goals and do not let your personal flaws get in the way of your success.