You might have observed and heard that a business/startup has shut down due to one or the other reasons for the same from different people. But the real reason does not get identified by most of the people. Based on the experience of different people and wide analysis, I have collected few reasons for a business failure:
Ego: If an entrepreneur is responsible for managing and handling the entire business, market needs him initially and he becomes the face of his business. Since he represents his company and when the client/ customer will have some questions regarding the services/products, they should be answered at the same moment. For their queries, customers require a person who is knowledgeable and productive when the time comes for shipping. For which, an entrepreneur is the best person because he is more knowledgeable, experienced and productive than anyone else. However, the majority of the entrepreneurs don’t reach to customers/clients as they feel scared of facing the customers in person. You must always be prepared to face the challenges (not interested customer but the ones who have complaints) and at times they feel insulted. Since they are your teachers for success. Every negative customer teaches you a lot, that can be a new opportunity to explore and develop your strategies. This process of gradual learning can only be achieved, after investing some time to interact with your target clients.
Laziness: Energetic boss always builds an energetic team. Normally people don’t give their 100% dedication and support to the business, which results in a business failure. It is very important to show the enthusiasm for motivating team members and be responsible for your own tasks and priorities. If you are alone, then also it is very important to be self-motivated. For enhancing your business, you may require a healthy lifestyle. In terms of proper food, exercise, and drinks. You need to understand the value of your health, which will become a major part of your business.
Hesitation: It is mainly seen in marketing the product. At times you get reluctant to talk to the people for one or the other reason, however, you should be ready to learn new techniques or strategies to interact with the people. You need to follow multiple methods, to get the maximum output and apply your strategies. It completely depends upon your confidence in yourself which is being demonstrated by your body language, communication skills, and your presentation.
Bad service: When you are in the business, no doubt you always try to provide better services to the customers. But due to the lack of resources or experience, services that are delivered to them falls below expectations. It may happen to anyone, which is normal but realization is the key to success. The moment you come to know that your customer is unsatisfied with your services or product, it is advisable to talk to them and provide the best option which you can offer. You may need to provide some discounts with a way beyond the limitation or free product or services at times, but if a customer can be retained by providing such attractions, it can be a winning situation for your future.
Extra-low budget or price: business owners always try to get more and more customers to achieve maximum benefits. However forgetting, that you decrease the price away low to attract the customers, which hampers your business cycle. By following such practices, you are raising your boundaries of specific rates or prices and you may land up ignoring the premium customers, due to low budgeting. If you are adding values to your product or services by offering something unique than others, never compromise on the rates. You only need to showcase the prices/ charges for the values you are adding to.
Overconfidence: Overconfidence has spoiled everyone, whether it is in business or any other activities. At times, you may get many customers and due to this, you start skipping the basic requirements like better customer service, delivery time or perfect quality. Due to which, you may lose your customers as there will always be a competitor to grab the opportunity of your customers. When you think that you are the only one providing a particular product or services, you are going to end your future aspects.
Dependency: Employees are important to every business but you should not be completely dependent on them as if you do so, this may hamper your business. Let's say if festivals are on the verge and your employees take a leave. You are expecting to get more orders, how you will make those products and deliver it. So it is always important to be a master in your own business and then arrange for the backup plan, rather than keep waiting for them.
Alternative: Always be ready to prepare for helping hand, when it is required and search for some alternate vendors who can provide the raw material or for outsourcing. In case you get more orders, you can distribute the work with profits. Following the strategy, will increase the customer satisfaction level and you end up getting more leads.
Marketing channel: This is treated as a backbone of every business. This requires the investment of, up to 70% of total investment in any business. There are different types of marketing channels and methods available like flyers, Banners, tele calling, bulk email, bulk SMS, radio promotion, Adwords, Adsense etc and every marketing method has a different expenditure or package. You always try to invest less and get more leads, but it is always important to choose the appropriate marketing channel or method to get more responses. This depends upon various attributes like the location, timing, kind of business, user group, cost, security etc. Like if a business is going to be started in the rural areas, spending money in Adwords will not be able to help you. The best method to promote your business is to provide services/ product to your nearby areas, which will be a cost-effective way for you. This will also help you, to make your profile better for prospective customers.
Employee engagement: Sometimes you become so occupied with your business, that you are not able to concentrate on your employees as you used to do initially. You used to give more preferences when you started, however unknowingly you are ignoring them which makes them feel bad about your behaviour. Employee engagement and employee recognition are as important, as the revenue of your business. So, it is advisable for your success to take care of your team simultaneously.
Coaching: Every individual is not the same, some can perform early and others may require motivation. However, it is your responsibility to guide them in an appropriate manner. So that they can work accordingly and contribute to the growth of the business.
Professional vs personal life: It is always essential to keep your personal life and professional life on separate tracks. It may sound tough job, however, you need to be practical. You have to adhere to the walls that you built around yourself, business issues must not get to home. Similarly, personal problems must not be able to disturb you in the office.
User group: When you launch any product or service, you tend to choose a limited group of customers (young generation mostly) as a user and forget about others. When you are not catering to the people on the wider scale, how can you expect the response from everyone? So it is important to cover every age, gender, taste, location when you introduce any product or services.
Minimum spend: When we are in business, at times we fight for minimum spends like the salary of the employees, office rent, maintenance etc and we always think to perform better next month or year. We again face the same issue after some time and we again promise to yourself which becomes a habit of lying to yourself. Due to this we always look for a minimum amount to pay out the liabilities and forget about earning to maintain our false dignity.
Minimum spend: When we are in business, at times we fight for minimum spends like the salary of the employees, office rent, maintenance etc and we always think to perform better next month or year. We again face the same issue after some time and we again promise to yourself which becomes a habit of lying to yourself. Due to this we always look for a minimum amount to pay out the liabilities and forget about earning to maintain our false dignity.
By avoiding above mentioned mistakes, you can surely achieve the business growth !!!
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