The 6 reasons most businesses fail in 2019
Startup life appeals to many aspiring entrepreneurs, often because of the dizzying heights which new business owners dream of reaching. But the truth is, that a large number of new and established businesses fail.
It is easy to pin the blame for these businesses’ failures on the economic climate alone but in actual fact, the state of the economy has very little to do with the failure of a great many small businesses. There are many reasons behind the inability of a business to flourish.
The following are just some of the reasons why a business can fail in 2019:
Inability to deliver real value
The success of a business rarely depends on what it does or what product or service it offers, but the value that it is able to deliver. If you take a look at the most successful businesses around the world, the one thing you will see they have in common is that each of them deliver the most value to their respective clientele.
Each business should be able to develop the skill of under-promising but over-delivering. No matter how difficult you find it to meet targets, you should always think of ways to deliver more than is expected of you. You’re likely to find yourself at a dead end if you are looking for a shortcut to earn a lot of money.
You should realign your focus on the value that you are providing to your customers. If your competitors are able to provide more value to your target audience, the chances of your business growing are greatly reduced and you may have to make changes to your approach before it’s too late.
There is nothing like adding value to create a buzz. If you put yourselves in the shoes of a customer, you will know that the only way to blow their mind and make them spread the word around is to provide them with a service which no other player in the market can provide. Aside from the quality of the service, the pricing plays an important role too.
Inability to connect with target audience
Your business is destined to doom if you fail to make a connection with your target audience. There can only be two reasons behind it; the first being that you are unaware of the expectations of your potential customers and that you are only interested in making profits, and the second reason is that you are not concerned about adding value to their lives.
You should be able to successfully figure out what they need, who they are and what they really want from a product. It could be to attain a certain status or invoke a certain emotion. The next question that you should ask yourself is whether your service or product can solve their problems and if yes, then how? Not being able to address the pain points of a consumer suggests that you do not have a good understanding of them.
No-one would expect you to know the exact expectations of your consumers, but there are many ways in which you can learn them such as creating focus groups, email ask-campaigns, market surveys or cold calling. Failure to conduct good market research is the quick way to your business sinking.
Failure to convert
Entrepreneurs have so much on their plates that it is natural for them to miss out certain crucial tasks sometimes. Optimising conversions is one such important thing that no business should miss out on. To build a sustainable business, you need to address the issue of conversions so that your marketing efforts have a positive return on investment.
You need a mixture of marketing techniques which grow your business organically, and those which provide an instant spike. Investing in building brand identity is an example of the former while paid advertising is something which produces relatively fast results.
Lack of transparency and authenticity
Businesses that lack transparency and authenticity are likely to fail. It may not happen right away, but it is sure to happen at some point in the future. Building trust is one of the most difficult things to do but it is absolutely essential if you wish to grow your business. The quickest way to lose a customer’s trust is to focus on the wrong things and disregard the needs of customers.
Instead, a business must focus on being transparent, authentic and thinking of ways to provide more than you take. It is not common for businesses to function along these lines but doing so can be really beneficial for you in the long run.
Inability to compete
No matter which industry your business belongs to, the competition is going to be fierce. This makes it even more difficult to stay afloat. This is especially true for small businesses as they are more vulnerable than their competitors who are bigger in size.
Some small businesses simply do not have the power and influence that it takes to compete against big companies. Such companies should think of ways to make themselves distinct and how to promote their ‘smallness’ as an asset. It takes a keen business sense to be able to do so, but there is a definite market for family-run, and small businesses that immerse themselves into their local community.
Lack of Leadership and Strategy
Most businesses that fail are those that keep on trying to function without addressing any issues, in the absence of an effective leadership strategy and when problems are already showing themselves to be evident. Entrepreneurs who do not have any real experience of the business world often struggle to keep up with the demanding nature of a business.
Finding your way across murky waters, when problems begin to surface, can seem like an impossible task when you’re a new and inexperienced entrepreneur, but all businesses face challenges; it is how you rise to them that will determine your relative success or failure. For this reason, it is advised that all business owners, irrespective of whether your company is big or small, have a board of seasoned mentors and advisors who can give the benefit of their combined wisdom. This is the way to keep a business afloat for a long time.
By paying heed to the tips given above in your strategy, you can prevent your company from being one of the many businesses that are headed towards failure in 2019.https://www.financelevel.us/finance/the-6-reasons-most-businesses-fail-in-2019.htmlhttps://www.financelevel.us/wp-content/uploads/2019/06/10-bible-versus-every-small-business-owner-needs-article-image-1024x538.jpghttps://www.financelevel.us/wp-content/uploads/2019/06/10-bible-versus-every-small-business-owner-needs-article-image-300x300.jpgFinance