Start a business, build it up, and succeed…That’s the dream for many of us. However, the fact is that succeeding in the business industry is, sadly not an easy task.
You’ve probably heard this statistic time and time again, but we are going to share it again anyway – only half of all new businesses survive the first five years, and only a third of new businesses make it to ten years or more. This equates to 65% of new businesses not making it past the first ten years of launching. Forbes recently reported that for every ten businesses launched, eight will fail within the first 18 months of launching.
Assuming that you have launched a business that offers a product or service that there is a demand for, it can be hard to understand why your business is not as successful as you hoped that it would be.
With that in mind…
Six Reasons Why Your Business May Not Be As Successful As You Dreamed It Would Be
#1. Lack of funds
One of the most common reasons for business failure or a lack of expected success is because of a lack of funds. The fact is that running a business does not come cheap (depending on the type of business you are trying to build of course). Running a business on a shoestring budget can work well, it’s just a case of ensuring that there are adequate funds to cover every required cost. When funds are tight, taking out a loan from a reputable lender such as www.unsecuredfinanceaustralia.com.au can give you the cash injection you need to continue with your dream. However, doing your research and ensuring you choose the right lender for you is always a smart move.
#2. Poor leadership skills
Another common reason why businesses are not as successful as their owners think that they will be is due to their lack of leadership skills. The truth is that not everyone is built to be a leader, which when it comes to business can be an issue. One key factor when it comes to being a good leader is delegation – you have to be willing to delegate, to ensure that your business reaches its full potential and is as successful as possible. If you are running your business solo, you may not have a team to delegate to, but you can hire freelancers to use to help ensure that everything is completed as and when it should be.
#3. Not taking customer needs seriously
As a business owner, it’s your job to take customer needs seriously. The fact is that if you compromise on what you offer your customers in terms of quality and don’t take steps to ensure that your products and services meet their needs, you will have a much lower chance of success. The best piece of advice we can give you about taking customer needs seriously is to stay in touch with your customers and make every effort to understand what it is that they want and need from you. You may be thinking, what does this mean? It means taking the time to gather customer feedback on a regular basis. It means making sure to listen to what your customers are saying to you – don’t ignore your customers because if you do, your business will suffer as a result. It’s crucial that your business remains relevant and that you ensure that what you are offering our products or services that your customers actually want. A successful business takes note of trending values and interests of its existing customers, as well as potential new customers, so that is what you need to do if you want to succeed.
#4. Lack of uniqueness
Your product or services may be in high demand but if your business still is not succeeding, the chances are it is because your business lacks uniqueness, and because of this, value. It could be that the approach that you are taking is too mild or that you lack a strong value compared to your competitors. It is important to ensure that you know what sets your business apart from your competitors. It is important to find ways that allow you to conduct your business differently to your competitors, and because of this, offer something that no one else is able to offer. Perhaps this could be offering a bespoke, customised product or service, or even a bespoke approach to how you deal with your customers’ wants and needs.
#5. Unprofitable business model
Another issue that can cause all kinds of problems is building your business on a model that, for one reason or another, is not sound. If you are operating without a professional business plan in place, or are ignoring your business plan and goals, it will have an impact on your revenue stream and success. Having a good business idea is not enough, which is why having strategic guidelines in place of how you run your business is so important. To ensure that the business model that you are using is sound, research how other businesses in the same industry, such as your competitors, run. Look at the business models that they use, and ensure that your business model is on par with theirs. Not sure if you are doing things right? It could be time to find a business mentor who can help to ensure that your business runs smoothly and is as profitable as possible. To learn more about business models, resources like www.dummies.com/education/college/examples-of-business-models/ can be useful.
#6. Poor money management
It’s all well and good having enough money to get by, but what about how you manage those funds? When it comes to business success, it is vital that you understand the importance of effective money management. If you want your business to make a profit and be sustainable, it is important to realise that you need to manage your money properly. You need to have a strong understanding of where your business’s income is coming from and where any money spent is going. If you don’t learn how to manage your business’s funds effectively, your chances of long-term success will be low, that’s a fact.
There you have it, a guide to six reasons why your business may not be as successful as you dreamed it would be. But now you can stop, assess and do something about it.
Which of these issues do you currently have problems with? Let us know in the comments below.