Proven Reasons Why Most Small Business Fail
According to Bloomberg, 8 out of 10 entrepreneurs who start a business fail within the first 18 months. Most times, the cracks in the foundation plans and strategy crashes the business even before it experiences financial collapse.
When these cracks are taken care of, the financial lapses won’t be a big deal. The reasons why businesses fail even before they are launched out and profited are:
Assumption Of Customers’ Pain-Point In Business
Most entrepreneurs make the mistake of assuming the only research they need to make to understand the market pain points is abstract research. As a result, they fail to realize the need for real dialogue with real customers. They also fail to understand that you cannot fully understand the customer’s pain points, needs, behavior, and values from tweets.
Real dialogue helps you understand your customers completely; their pains, behavior, dreams, values, the goals they are trying to accomplish. Moreso, it will help you serve them better as markets are conversations, dialogue is key.
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Failure To Identify And Provide A Unique Value Proposition
Your value proposition is the true value you bring to the table. For your value proposition to be unique and different from others in the marketplace, you have to first figure out what makes people tick. After you have it all figured out, it becomes easier for you to uniquely brand it. It should be unique and creatively come from your style. That way, it stands out from others.
Failure To Communicate Value Propositions
To avoid bleeding to death in business, communication is key. Here, your failure to communicate your value propositions in a clear concise and compelling fashion is no one’s favorite recipe to disaster. It’s one thing to discover your unique value proposition, it’s another thing to know how to communicate these value propositions to the right audience.
You can communicate better when you have real-life conversations with your customers. It should be a dialogue, instead of a monologue. You shouldn’t be the only one doing the talking. You should allow your customers to express themselves comfortably. Be clear concise and compelling. The aim is to communicate with them using their own words.
Failure To Evaluate Decision Making System
Self-sabotage is the worst of them all. It’s the cruelest way to go down, by your own hands. A poor decision-making system has contributed to the unavoidable fall of a lot of businesses. To be able to succeed and make the right decisions, you have to realize that you are the leader. As a leader, if you lack the necessary skills required to make waves in business, acquire those skills. If it’s a flaw, take a program that will help you in your journey to fix it. To succeed, you have to spend more time with your personal growth and development. Don’t be one of those whose dysfunction sold them out.
Inability To Map Out A Profitable Business Model
Most businesses do not only fail because the entrepreneur fails to satisfy the four criteria above. Most businesses fail because of the entrepreneur’s inability to quickly map out a profitable business model with proven revenue streams. When you have a business idea, quickly ascertain whether you have a potentially viable business idea. Think and move quickly. Nail your business model in order to secure a proven revenue stream.