Why Do So Many New Businesses Fail?

Just because you have a great idea for a new business, doesn’t mean that you have the skills necessary to actually make it a success!  Failing to acknowledge that you aren’t equipped with the knowledge, or the skills to do everything yourself, may mean closing up shop before your new venture ever had a chance.  Some of the main mistakes failing business owners make every day include:

 Businesses Fail

Poor Planning

A good business plan is an essential tool to ensuring success.  Every stage of a business’s growth needs a new and different approach.  What works for a start-up will not work for an established business.   Assess your business every few months, taking note of successes and failures in all departments.  

Poor Management Skills

Every successful business needs a strong leader with the vision to see what it can become, and the know-how to get it there.   

 

Poor Marketing

Marketing isn’t just about advertising.  It’s about finding unique ways to get your customers to view your product or service as a necessity in their life.  Without that, sales will be weak, and success out of reach.

 

Poor Sales Techniques

Not every entrepreneur is a good salesperson.  But no business can survive without one.  Whether you’re trying to sell a product, or a service, convincing the buying public that only your company can offer them what they want and need is essential to success.  

 

Poor Financial Management

One of the top reasons why new businesses fail is a lack of sustaining funds and poor financial planning and management.  Be sure to set aside more than enough funds to get through the first 12-18 months of business (including salaries, rents, utilities, inventory, etc), before ever opening the doors in the first place.  

 

Not Acknowledging When You Need Help

 While it’s important to do as much as you can yourself in the first few years, it’s equally as important to recognize when you lack the skill sets to do it yourself, and to find someone who can. 

 

Starting a business from the ground up takes perseverance, knowledge, and a lot of hard work.  The odds of success may be slim, but if you follow these simple rules, you just might have a chance.