Studies and statistics have shown that 9 out of 10 small businesses will fail within their first few years. Why? Here are the top 10 reasons that many new businesses do not reach success.
1.) Poor Business Plan
When starting a new business or re-evaluating an existing one a solid business plan is a must. A business plan is a guide that is used to identify goals, allocate resources, handle unforeseen complications, and make the right decisions.
Many business owners are too focused on the day to day operations of their business and do not consider where their business is going and how it should get there. As a business owner you must have a vision of your company in mind as well as a goal. You must then work toward that goal while keeping your company true to your vision.
2.) No Niche
Many business owners simply fail to identify their target audience. To be successful in business every company must have a niche. It could be wedding supplies, information products, pet products, baby products, or any of thousands of other things but you must work within a niche.
Working within a niche allows you to consolidate your efforts and market exclusively to businesses or individuals who are interested in your products. Other than the large department stores very few businesses survive by trying to have something for everyone.
3.) Failure to create a Unique Selling Proposition (USP)
Your advertisements must make a proposition to your customers. Your company, product, and advertising must convince your customer to purchase your product because they will benefit from it.
Your USP must offer something that the competition either does not or cannot offer. This is easily accomplished by “coining” a phrase.
Examples include:
The Dairy Industry – “Got Milk”
Mazda – “Zoom, Zoom, Zoom”
The Pork Industry – “The Other White Meat”
Red Bull – “Gives You Wings”
4.) Poor Promotion
To have success in the business world you must promote both your company and your products. Regardless of your niche there will be competition and you must ensure that your company shines above all of the rest.
There are many strategies that you might use to promote your business and products. If you have a brick and mortar storefront customers will see it and will venture in to see what you have to offer. However if you are overlooking the vast market of the internet your sales will be limited as will your profit.
Locally you might purchase media advertisements in the newspaper or television commercials to grow your business. However if you are only advertising in local markets you are overlooking a vast customer base. Every business today should have a website to sell products to internet customers as well. Why limit your customer base locally when you could be marketing to the world?
You can get anything that you want in life and in business by helping others get what they want.