There is no agreement
among experts on the percentages of businesses that fail. Recently, Forbes
estimated that 80% of companies fail, while Fortune claims it is closer to 90%.
According to the Small Business Administration (SBA), about 50% fail within the
first year. Of those that survive, the SBA goes on to tell us, only about 66%
survive the second year.
Whatever the number
indeed is, most small businesses do not survive the first couple of years. Why
is the survival rate so low?
In starting many
businesses myself and working with small businesses owners as clients, I've
come across five surprising reasons why small business owners struggle and
fail. In this article, I'll point out these reasons, and by knowing them, you
can avoid these pitfalls.
Reason #1 - Don't know
what product they are selling.
It is hard to believe
that most business owners do not understand what product or service they are
selling. They say "People come to me to buy flowers," "I'm
offering insurance," or "I sell cupcakes." But the truth is,
they are not selling a product or a service, they are selling a feeling or
emotion.
Buying habits are
based on feeling and emotions and are only justified by the use of logic. Let
that sink in. People buy based on feeling and emotions and then defend it with
logic.
Let's say you have a
flower shop. People can buy flowers from many different sources these days.
Supermarkets have flowers as do some convenience stores. Why should they buy
from you?
What feelings or
emotions can you promote that will set you up for success with your business?
Reason #2 - Don't know
who is their ideal customer
Many business owners
will say that they don't care who their customers are. Just as long as they
have customers, they are happy. They just want to have customers.
The truth is it is
essential for you to know who your ideal customers are, and there are many
benefits for this. When you work with your perfect customer, you do your best
work because you enjoy working with them. You will be more inspired and
fulfilled by what you do. You will connect with your customer on a deeper
level, and they will more likely recommend you to others.
So, who is your ideal
customer?
Reason #3 - Don't know
what makes them unique.
I come across many
business people who believe that they will be successful just because they open
their doors, have a website, or hang a sign up that says they are open for
business. They think that the product they have will sell itself. Sometimes
this can happen. However, it is an infrequent occurrence.
In this increasingly
confusing world, information and products are continually bombarding your
customers from all sides, and you need to stand alone to stand out. To do this,
you need to be unique from all the other businesses out there doing the same
thing you are. By being unique, your customer will recognize you and come
looking for you.
What is it that makes
you unique in the market?
Reason #4 - Don't know
how to promote the business.
When a business does
not know what product they are selling, what makes them unique, and who their
ideal customer is, they have a difficult time promoting their business. If you
are trying to please and attract everyone, your message is too broad to appeal
to anyone, and you waste a lot of time and effort with your marketing.
If a business is clear
on what and who it is, promotion is simpler and more straightforward.
Advertising becomes more targeted, and because of this, its success rate is
higher.
In light of this, how
can you now promote your business?
Reason #5 - Don't know
their end goal.
So what game are you
playing? Many of the businesses I come across answer this question by saying
they want to be successful. But what does successful mean? The answer is
different for everyone. A company that does not know what their end goal of
being in business is, they do not have a direction in which to work towards,
and because of this they flounder around and never achieves their goals.
Knowing what your end
goal is to provide you with a direction in which to work. Is your end goal to eventually
sell your business for a profit? Or maybe it is to provide a comfortable life
for yourself and your family? But understand if it is the latter, what does
comfortable mean to you? What salary do you want to earn? Or is it that you
want to spend more time with your family? Knowing the answers to these
questions gives you a direction and a goal.
So what is your end
goal?
Do you want to
transform your business and have all that your heart desires without all the
stress and setbacks you're currently experiencing?
To be able to do this,
you'll need to get clear on what you want, set goals and achieve them. Go to
[http://www.lojope.com] to find tools, articles, and the support you need.
The quickest way to
achieve your goals is not to attempt them by yourself. Even if you don't hire
me as your coach, hire a coach, all the high achievers do it. If you don't hire
a coach, at least work with a trusted friend as the path doesn't have to be
long and arduous, especially if you have someone along for the ride.
From Trent Fisher -
Mr. Transformation -- Transforming the world one business at a time.
Article Source: Trent_Fisher
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