Learn more about business with this collection
Leonardo da Vinci's creative process
How to approach problem-solving like da Vinci
The importance of curiosity and observation
The First Reason Why Small Businesses Fail
The data on the survival rate of businesses showed that 22% of small businesses fail within the first year, 32% for the first two years, and 40% for the first three years of business.
But why?
The lack of funding or capital is usually the main reason why small businesses fail because the operating expenses are costly from payroll to supplies to rent and more.
Moreover, many don't understand how to price products to create profit, and more often than not is that they don't pay attention to their cash flows.
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207 reads
The Second Reason Why Small Businesses Fail
Another mistake that many entrepreneurs make is that they don't have good business plans. A business plan must include the following: business summary, competitor and market analysis, business model and operations plan, marketing and financial plan, and product and service offerings.
A business plan will give you an understanding of the industry and competition. It solidifies your business model before offering any products to customers and shows possible revenue streams so you can plan ahead
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185 reads
The Third Reason Why Small Businesses Fail
Weak management.
Many enter into the business world because they're passionate about something but rarely do they get into business with a passion for human resource management and operations.
A survey showed that 52% of small businesses have labor quality problems. Coincidence? I think not.
Without letting go of the wheel and handing it over to someone with experience and strength, you won't be able to make up for your shortcomings.
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151 reads
The Fourth Reason Why Small Businesses Fail
Small businesses lack the ability to understand their customers because they are often not prepared to meet the marketing demands of their company.
Poor marketing can result in difficulty in determining costs and the inability to reach a target audience and conversion goals.
Marketing is crucial for any early-stage business. If you do not understand the basic marketing strategies and how to apply them, how will you be able to create and implement successful campaigns?
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How To Fix A Struggling Business
- Develop a growth mindset
- Set doable goals
- Learn why customers are leaving your business and establish a feedback system
- Identify your target audience
- Perform a SWOT analysis to get back on track
- Track your finances weekly instead of monthly
- Get funding if you need it
- Do a close analysis of what's working for you and what's not; be prepared to make drastic changes
- Invest in marketing
- Be proactive
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CURATED BY
CURATOR'S NOTE
This article allows us to understand why businesses dry up so easily and how we'll be able to get back on the path to success. It is important to keep optimistic so think about it this way: A business down turning is not the end, instead, it is a learning opportunity to start new and rebuild.
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