90% of new businesses fail within 2 years. It’s a simple yet unfortunate fact.
If you’ve ever started a business and failed, then you are not alone. What these stats suggest is that new businesses need help to survive and meander through the tough two-year period. Therefore, understanding what you failed to learn in the first place is absolutely vital to succeeding in the future.
Ultimately then, it’s what you don’t know that causes businesses to fail. So, for that reason, we thought we’d put together some of the most common reasons why new businesses fail and how we at Profici, can help.
Lack of Planning
Lack of planning is when you disregard the value of planning and start almost straight away; like a boat without a paddle. A good plan should include both short, and long-term goals, including a way in which to measure objectives and results. It should also have clear to-do lists, benchmarks, and milestones. In essence, without a map, how do you know where you are going.
Lack of planning is probably the main reason why businesses fail.
They Don’t Know How to Lead
There’s more to leadership than motivation; it’s about inspiring your employees with a bold vision of the future.
It begins by building rapport with people and helping them realise their aspirations within the business. Leadership is essential; without it, it’s hard to make good decisions. However, leading by example and from the front, rather than hanging motivational slogans around the place, is guaranteed to be a lot more beneficial to your business in the long run.
They Don’t know How to Grow and Market Their Business
Marketing doesn’t start with learning how to use advertising software and dressing like you’re in an episode of Mad Men. It starts with having a clear message.
Indeed, unless a company can state clearly how and why their product meets the needs and wants of the customer, then its marketing output is pointless. In essence, winning people over starts with understanding consumer desires and tailoring products to meet said desires.
They Fail to Adapt and Grow When Things Change
Perhaps your initial business model produces a certain level of income, but if you are not studying your market and evolving accordingly, you run the high risk of being left behind. Doing the “boring” research always pays dividends when you’re standing smug, ahead of the curve.
Leave your competition floundering by being constantly on the lookout for the next big thing!
We Are Your Vehicle to Success
At Profici, we are your vehicle to success. For more details on how we could help your business succeed and pass the dreaded 2 year mark, email us at info@profici.co.uk
Visit our website for more information > https://profici.co.uk
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