6 Reasons why your company could fail
If sales are down, you have a few clients who call at your door, or you’re having trouble paying vendors, it is time to take action on the matter. Although each business is different, there are typical reasons why a small business fails.
In this post I will share some of the leading causes of business failure and give you tips to keep the stability of your business is affected by any of these causes.
1. Do you know how to market your business
Not all business owners are born knowing how to publicize your business. But when an owner defects put their business at risk, that’s when someone should take responsibility and take action.
If you think that marketing is too difficult to understand, or do you think it costs more to hire someone, you’re basically closing the possibility of finding new customers. Marketing is an investment in time, money, or both.
Steps to fix: Start promoted. If you have no money, invest an hour or two a week to read some books, blogs, or articles on marketing and learn how to use social networks, create a blog, and learn more about public relations to attract more people to your web site and / or your store. If you have more money than time, make a budget some marketing consultants or freelancers.
2. Your prices are too low
If you have more work than you can carry out but you are having trouble making ends meet, it’s time to evaluate your price. Pricing the products tends to be a little easier to put a price on services, because you know what it costs you buy or make those products, so the price can be readily determined based on a desired profit margin. But even with the services, you have to manage the collection expenses of structures (internet service, heating / conditioning), salary and office expenses. If you have difficulty paying your own bills, your benefit should not be so limited.
Measures to fix: Do not bend your prices immediately. Raises prices for new customers only and see how the market behaves. If you’re closing sales too easy, you could increase these rates even more.
3. I do not really know your customers
You think you know who they are, but unless you’re really informed of your demographic, know what motivates them and understand their problems, do a terrible job trying to offer an appropriate solution.
Steps to fix it: A little market research can be the key. Talk with current customers, using surveys, ask questions on social networks, draws a map of empathy.
4. Do you think that SEO and social networks are not useful
Regardless if an accounting firm globally or bakery underneath your house, you must commit to make a SEO campaign to help you get more customers. After all, are the key words you use in your website which help to find the right people and have online links which solidify your brand reputation.
Steps to fix it: If you do not have time or money, tactics learned about SEO or hire a professional SEO company that has extensive knowledge in the field and can help you focus on other areas of your business, while maintaining your competitiveness.
5. You can not support growth
You started out small and did not expect to emerge immediately. If you’re not ready for the stress that your servers will experience, the number of sales in progress, or the flow of calls from customers, seriously put at risk your brand reputation.
Measures to solve: Overall, climbing fast is good, but you need a plan to hire more people and teach them to drive more web traffic, phone calls, and customer applications.
6. You are not an expert in the business world
It is not essential that you have a master to start a business (or a career), a solid understanding of finance, management, marketing, and sales leadership will suffice. If you have mixed your personal accounting with your business, you’ve had problems in managing staff or simply you lie the hands on your head, your risk of failure multiplies in minutes.
Measures to solve: If you want to be weighing entrepreneur. Many owners start a business because it was what they wanted. He is respectable, but not a CEO who knows how to run a business, the disaster is guaranteed. If you commit to continue to grow, invest time in classes, workshops, and resources to strengthen the skills that you falter.
Take such measures as tips and start making the necessary changes to achieve success in your business.