Every year, more and more entrepreneurs experience small business failures. The reasons behind these seemingly sudden deaths vary. However, these causes are avoidable if you know how. As early as now, you can take measures to prevent your business from dying on you.
Read on to learn the causes of small business failures, and how to prevent them.
Cause # 1: Poor Management
One of the major reasons for small business failures is poor management. Ive heard so many stories about entrepreneurs being too laid-back that they succumb to mediocre management.
A word of advice: Small businesses may be easier to manage than large multi-national companies, but that doesnt mean they dont need your attention any less.
When you let your guard down, thats when you start missing some of the most crucial details. Customer service disappoints Your own employees steal from you Overall quality simply isnt worth it anymore. The best thing to do here is to remain dedicated to your work. Have every minor detail go through you first.
Cause # 2: Poor Location
Starting a business isnt just about having the capital to set it up. Its also about knowing where to put it up. Lack of careful planning leads to small business failures. For example, you cant exactly start an ice cream business in a place that is always cold and stormy, or in a place where no one eats ice cream at all.
In order to avoid wasting time and money, make sure you conduct a serious study on the nature of your business and where it would most likely thrive. Conduct a feasibility study or a survey. Do everything you can to prepare yourself before the business actually materializes.
Cause # 3: Poor Marketing
Build it and they will come. Yeah right; if its only that easy. But you cant just start a business and expect people to know what its all about.
Unless you practice your marketing chops or at least generate a bit of buzz, dont expect to be flooded by customers. In fact, dont expect to have any customers at all. At most, all youll have is a curious bystander or two. Even word-of-mouth requires you to do something to get people to talk.
Every business has a different gimmick to get people to come to them. The most reliable would be to advertise in the local newspaper or to give out flyers in the street. Others like to play loud, catchy music to get people to notice them.
With these tips, you dont need to fear small business failures. Yours will go on living and growing for a long time to come.