Why new businesses fail ?

Why do people get into business i.e Start up their own Business or Company ?

Is it because we are sick of the 9-5 rat race or perhaps we just want to be our own boss and provide opportunities to others ? Or maybe it’s because we want to generate an abundance of wealth if we look to create something of real significance to impact the lives of others.

There are plenty of reasons behind why we choose to go into business for ourselves, we have all these hopes and dreams of creating a successful business but find out quickly it’s harder than we imagine and truth is we go in unprepared for the road blocks that are bound to happen in a business startup.

I’m going to take you through my top 5 reason why new businesses fail to help you gain valuable knowledge to overcome or prevent these problems that are bound to occur so that you can move forward and create a successful business.

Top 5 reasons why new businesses fail

 

1. Business owners quit to early

You know the age old saying ” When the going gets tough the tough get going”, unfortunately when business owners have their backs against the wall the majority pack it all in and quit way to early on their business more importantly their vision and this is a core reason why new businesses fail. Many successful businesses today didn’t start seeing success till after  3 years, 5 years even after 10 years. Many business owners believe if it’s not successful after a year then it will never be successful, and an attitude like this will defiantly cause you to fail. why new businesses fail

If you believe in your product, your vision, and what you have to offer will benefit the people then don’t quit on your business more importantly don’t quit on yourself. If you don’t see instant success or after a year DO NOT QUIT, keep looking to improve on your business, your products or services and start investigating why your business is having slow growth, research your competition who are having success, start putting some solid ground work into understanding your market. why new businesses fail

When you start gathering intelligence you will find your business will start to develop in the right direction. why new businesses fail

2. Poor Marketing campaigns

When new business owners get into business they haven’t got a world of clue how to market a product let alone their entire business and this is why poor marketing campaigns is my number two reason why new businesses fail. why new businesses fail

When we get into business we are a little naive because we believe we got such a great product or offer such a great service that we are going to get a flood of customers just like that. Wrong.. And when we realize  this isn’t the case we start looking at how we can get our product out there to our audience and this is when a lot of the big problems start to happen and money is wasted.

When new businesses start to market their products and services they go wrong in a number of areas as follows:

  • Don’t know who their target audience is for their product or service
  • Spend thousands of dollars on the wrong marketing strategies for their business
  • Don’t test their marketing campaigns to collect valuable data which is measurable and scalable
  • Don’t research their competitors and the marketing strategies they implement

3. Can’t close the sale

Most business owners don’t get into business to sell, but find out very quickly they got to learn how to sell very fast and this is why can’t close the sale is number three on why businesses fail. why new businesses fail

What is it about selling that people hate ? Is it because they don’t believe in the products or is it because they’re sick of people selling to them and don’t want to piss people off, or is it really because of fear, fear of confrontation, fear of getting out of their comfort zone and speaking to people about their products and services and the benefits if they buy..why new businesses fail

My number one reason why ? Is the Fear of Selling.                       

Yes it’s daunting to speak to total strangers who you wouldn’t know from a bar of soap, yes it’s daunting trying to persuade someone why your service is the best, but most of all it’s the fear of hearing NO…. If you want your business to be successful you have to get over the fear of selling otherwise you will have no business, if you suck at selling then take action and the best way is to start getting yourself in front of people. If you’re passionate about your business then it will become more natural and your passion will help you generate the sales, and if you can’t do it yourself then utilize other experienced sales people or marketing campaigns to generate the sales.

Once you’ve established the sale it’s vital you now close that sale, closing is the easiest part of selling and if your prospect has listen to you for more then 5 mins , 10 mins  etc and is genially interested in what you have to offer because you provided enough value to benefit them, then you need to create a call to action. People need to be told to buy either because they have objections i.e there spouse is a major one, or have poor decision making skills. . 9/10 you’re making the decision for them to take action Right NOW.

So what are you going to do ? Get good at Selling.. why new businesses fail

4. Internal issues

One of the major reasons why businesses tend to fail is because of internal issues among the business partners, and this is why it’s number four on why new businesses fail. why new businesses fail

Internal problems among businesses can determine whether a business will succeed or fail. Usually when a new business starts up, the partnerships between the owners get off to a wonderful start but when things start going from good to bad the real test on your partnership will begin. A lot of people can’t deal with defeat and start to struggle when things start to go bad, a lot of people tend to freak out, they begin think to negatively, start to complain and there work ethic starts to collapse and soon comes the arguments and the fighting begins between the partnerships and I’ve experienced this on a number of occasions in previous business ventures.

So how do you combat this ? Here are some answers below:

  • Get together with your business partners and discuss why you started the business – doing this will help bring back some motivation and the real reasons you started in the first place
  • Bring in a helping hand – Sometimes there can be too much pressure on someones shoulders and if bringing in a third partner or fourth can help ease the load and take the business forward in the right direction then this is an option. *Note do your due diligence first when making a decision on bringing in a new partner
  • Removal of your business partner/s – This should be your last resort, if you can’t come to a resolution and your partner continues to affect you and the business then you have no choice but remove your business partner from the business and this will involve legal matters at the best of times.

5. Poor Project Management

The development of your business is crucial for it’s success and this is why poor project management is number 5 on why new businesses fail.

The development of you business is crucial for success, and the tasks you set must be followed through and completed at a set date with no excuses. Lack of motivation and the reasons mention above on why businesses fail are the causes for poor project management and tasks becoming incomplete. When getting into business for yourself you have to accept that your business will be a continue development and there will always be areas you need to improve on.

Another reason why task get delayed or become incomplete is because to many projects were created. If you’re stretching yourself thin you need to hold off new developments and focus on the most important and urgent tasks. When you utilize the important and urgent scale to measure your tasks you will find structure in your project management and your task will be completed much sooner. The task you set should always revolve around improving customer experience and the improvement on your products and service, when you focus on these areas you sales will improve along with it.

Bonus: 6. Bottom Line is they have Poor Bookkeeping Skills

This is a major contributor to small business insolvency. It not only relates to recording transactions but also tax compliance. Debt to the ATO if not recorded properly doesn’t appear in the accounts, BUT it is still payable. You need to hire an accountant or at the very least use an online bookkeeping service

Business should review their position regularly and be aware of changes in the market so they themselves can make changes. Forecasting IS important as you cannot steer a steady course if you have no destination in mind.

Why Businesses Fail in the Digital Age

A while back, our company president slammed three phone books that someone left at our doorstep down on my desk and said, “Write about this!” After I composed myself from the shock of it all, I took a moment to flip through the phone book, which called itself “Local Search.”

This struck me as at least a little absurd since 54 percent of people have replaced the phone book with online local searches.

Still, I found the yellow pages full of advertisements.

Can you guess what happened when I searched Google for a few of those companies? They were nowhere to be found in the local search results.

That means that those businesses were paying for ads with no way to track the success of their investment but weren’t taking a little time to build at least a basic online presence.

So, I put down the phone book and started to research.

Did you know that only half of small businesses survive longer than five years?

We don’t want your business to fall victim to this fate, so we’ve put together a list of mistakes you should avoid in order to survive in today’s digital world.

Or, hey, feel free to skip all this and just watch this webinar to learn how to improve your local search ranking.

Mistake #1: You Don’t Have a Website

Only half of small businesses have a website, which is baffling. There are so many reasons why businesses fail, but most fail from lack of capital and it is surprising how many operate without understanding their own financials. This means watching the bottom line and hiring a good accountant or using an online accounting software or service.

Here’s the process I use when looking for a local business.

Search in my phone
Click/tap the first business (or the one with the best reviews)
Check out the business’s website
If they don’t have a website, check out the next business in the search results
Look at that business’s website, followed by social media
I’m not the only one. Consumers are researching your products and services online before making a purchase, but 85 percent of consumers prefer to purchase from a store, rather than online.

That sets brick-and-mortar businesses up for success.

All you have to do is make sure consumers can find enough information about your business online. Part of this involves having a website.

While paying someone to build a website for you is an investment, you need an online presence to survive today. Don’t be the business in town people didn’t know existed because you think you can’t afford to (or don’t need to) have a website built.

The fix: Hire a web designer/developer to build your website. Be careful, though. Here are a few things to keep in mind when choosing a web designer or a developer:

Ask to see a recent portfolio.
Any decent designer or developer should have a diverse, attractive portfolio. Make sure to visit a website they have built as well. Browse the site to make sure it works properly and the user experience is up to par. If their past work is shoddy, you don’t want them working for you.

Ask for references. Ask to speak to the designer’s former clients so you can find out what it’s like to work with them. Ask the references how easy the designer was to work with, what the process was like, how often the developer or designer was in contact with them, if they’re happy with the end result, etc.

Make sure you are on the same page. Go in with an idea of what you want your site to do and how you’d like it to look. Once you’ve communicated your idea for your business’s website clearly, you can ask the designer to create a mock-up to make sure you’re on the same page. If they can’t seem to give you what you want, then you don’t want to work with them.

Ask about mobile optimization. Websites need to be optimized for mobile devices since so much of our Internet usage comes from mobile. Ask them if your website will be optimized for mobile as well as desktop devices. If not, find someone who will do that for you. Mobile-optimization is not optional, and if you’re paying someone to build your site, mobile optimization should be a standard part of the package.

Mistake #2: You Neglect Your Business’s Digital Marketing

This goes back to the phone book problem.

If you’re advertising in the phone book, but you haven’t taken the time to create an online presence for your local business, you should rethink your strategy. Local search marketing is the way to make sure local consumers can find you, and while it’s difficult, it’s worth the time and effort to establish yourself online.

What Is Local Search Marketing, Anyway?
Local search marketing is telling search engines exactly where your business is located and what you do (as well as other information like business hours and service area) so that it knows what to display in searches for people in the area who are looking for businesses like yours.

Here’s the thing:

Your customers (probably) aren’t flipping through a phone book that’s chained to a pay phone to find you. And, they aren’t talking to neighbors over backyard fences to get recommendations for local businesses.


Phone Book Advertising vs. Local Search Marketing

Local businesses don’t always have big marketing budgets, but that doesn’t mean you have to rely on word-of-mouth or the phone book to do all your advertising.

There are some serious problems with advertising in the phone book:

It’s expensive (often more expensive than paying for Google search ads)
It’s difficult to track ROI for your phone book ads
You have to commit to a full year of advertising, whereas online you can usually stop your ads any time you want.
The fix: Instead, follow these steps to kick-start your digital marketing and build an online presence for your business today:

If you have a local storefront, set up a Google My Business page. Google My Business signals account for about 19 percent of how Google decides where to rank your business in local searches. And Google is the biggest search engine in the world.
Manage your local citation information (name, address, and phone number) across directories. Citations account for around 13 percent of how search engines decide to rank your business, so make sure those are correct and consistent.
Set up a Yelp business page and social media profiles. At the very least, make sure your business is on Facebook and Twitter.
Be active and engaged online. Answer messages and reply to comments on social media. Your customers and your competitors use social media, probably daily. And seven out of 10 consumers are likely to use brands with business information in their social media profiles. It’s pretty easy to take advantage of that. All you have to do is be present on social media and have a social marketing strategy.
Ask customers to leave online reviews of your business. Reviews are extremely important for local businesses. Eighty-eight percent of consumers trust reviews as much as they trust recommendations from friends and family, and reviews can help you get found online. Customer reviews tell search engines they can trust your business, and they also can cause consumers to spend 31 percent more on your business.
Try paid (online) advertising. If you have the budget and you don’t want to wait for your business to show up in local search results, you can pay to show up higher in local searches. Make sure your business’s hours, category and name are correct in Google My Business. Once you’re sure those are correct, you can link your Google My Business account to the location extensions in AdWords and your ads can appear in Google Maps for local searches.

Mistake #3: You’re Trying to Do It All Yourself

That brings us to our final mistake. You’re trying to do everything yourself.

Going digital is not an option. And if you haven’t at least started creating a digital marketing plan for your business, you are well behind the competition. It’s time to change that.

But, as a small business owner, you have a lot of responsibilities.

It isn’t always possible to do your own digital marketing while keeping your business running. There’s no shame in not being able to do it all yourself.

The fix: Instead, find someone with the time and expertise to help with your marketing.

It’s important to know what you’re getting into when you look into a digital marketing agency. Here are a few things to keep in mind when looking at agencies:

Ask to see case studies. Digital marketing agencies should have some proof that they’ve had success with other local businesses. Whether this is in the form of case studies or client referrals, they should be able to show you what they can do for your business.
Watch out for outlandish promises. If a company promises to get you to the top of the local (or organic) search results overnight, they are lying. Climbing to the top of the search results is like climbing to the top of the corporate ladder. You can’t do it overnight. You need to prove you are trustworthy and able to do the job you say you can do. So, if an agency makes these kinds of unrealistic promises, you should take your business elsewhere.
Find out who your point of contact will be. If the agency doesn’t have a dedicated contact for their clients, who will you speak to when a problem arises? And if you do have a contact, how often will you speak to them? Will they specifically make time for you?
Ask about analytics. Will you have access to your marketing analytics? If the agency refuses to give you access to your analytics, think twice about using them. Analytics shouldn’t be a secret.

The Best Way to Report an Auto Accident to Your Insurance Company

Many people wonder about what they should do first when they have been in an auto accident in St. George, Utah. After a few preliminary things are done at the scene of the accident, filing a claim with your insurance company is the next step. You do not have to file a claim, sometimes you may wish to simply notify your insurance company of an accident and choose not to file. However, if you are going to file a claim, which you usually should, then there are certain things that you must be aware of before reporting an auto accident to your insurance company.

gold phone
Photo Credit: elly jonez

  1. First and foremost, always be safe. Remain in your vehicle if that is the safest place. Get out if it is not. Seek medical attention for anyone that is injured, and turn on your hazard lights.
  2. Always make sure to get the other driver’s information. Take a picture of the other driver’s license plate with your phone. Then write down the other driver’s name, make and model of his car, and his insurance information. Sometimes the other driver may attempt to persuade you not to make an insurance claim, a police report and this basic information must be taken down no matter what.
  3. Always make sure there is a police report. Involving the police immediately after your accident is the only way to make sure that the other driver’s story does not change. A police report gives both parties a neutral third party perspective of what happened. Once it is recorded, fault is much easier for insurance companies to determine down the road.
  4. Look for available witnesses. In a best case scenario, you would want neutral third-party witnesses to write witness statements and include them in the police report. If that is not possible, at least obtaining the name and phone number of a neutral third-party witness could be extremely helpful later when the insurance companies are determining fault.

Once you have completed the first four steps, and you have taken enough time to be calm and collect your thoughts, you are ready to file your claim. Either contact your insurance agent or just use the phone number on your insurance card that you have with you in the car. While speaking with your insurance company, keep in mind that the phone call is likely being recorded. Do not say anything that you do not know to be true. Oftentimes, people do not realize the extent of their damage until well after the accident. That is why it may be wiser to wait and call in your claim after you get home so that you can better assess your injuries. Here are some additional tips:

  1. Do not be emotional and do not make guesses or exaggerations about what happened. Simply tell them the specifics of the accident.
  2. Your insurance company has contracted with you to protect you in the event of an accident. Do not be scared to file a claim with them. Failure to report an accident could be far more problematic for you in the future. Keep in mind that you are filing your claim with your own insurance provider. They are there to help.

If you are contacted by the other driver’s insurance provider, be very careful what you say. Do not rely on your memory. Write down what happened at the time of the accident and only tell them that. In fact, at that point, it may be best to just refer the at-fault driver’s insurance company to your attorney. A good personal injury attorney has experience dealing with insurance companies. He or she can take away much of the stress after an auto-accident.

Car Accident – Go to Court vs Mediation

Mediation is the simplest form of dispute resolution that involves a third party. It is considered alternative dispute resolution because mediation and arbitration are alternatives to formal litigation. Car accident mediation is an option, both parties must agree to it. Neither party can force the other party to mediate. Down the road, after litigation has commenced, the court may force the parties to mediate before proceeding but this is not very common. Mediation is not binding on either party, it is simply an attempt to reconcile. With that in mind, you should not agree to mediate if you have no interest in settling your dispute amicably. You should also not agree to it if you believe that the other side has no interest in settling the dispute amicably. To do so would simply be a waste of money.

2012 Mercedes-Benz C63 AMG Car Review
Photo Credit: NRMA Motoring and Services

After both sides agree to mediation, the next step is to agree to a mediator. The two parties will split the fee to pay the mediator. Mediators are typically experienced attorneys or former judges. You will want one that understands personal injury law and has experience in the courtroom. That way, they would understand how the dispute might come out in court. That knowledge will give more weight to their recommendations and will give valuable insight to both parties.

When you arrive at your mediation, both parties will be allowed to explain their interpretation of the facts. Once both stories are fully out there so that all parties can understand what issues are in dispute, the mediator will begin to act as a facilitator to help the parties resolve those issues. Hearing the adverse side argue their case can be aggravating, when people get aggravated, they get irrational. Being irrational can be a huge barrier to resolving disputes in a mutually beneficial way. For that reason, the mediator may separate the parties into different rooms after explaining the facts. He or she can then bounce back and forth and point out each parties weaknesses in private in an attempt to get their ideas about the case closer to being in accord. It is important to remember that the mediator is not your judge. He or she has no vested interest in one side wining. They get paid no matter what. They are really just there to provide a neutral third party outlook and make recommendations.

There are definitely a few important tips to keep in mind while preparing for your mediation. The first to make sure that the opposing party brings their real decision maker. There is no point to spend time and money reaching a solution only to have the solution rejected by the decision maker. Who you choose as your mediator can also be very important. Most courthouses in Southern Utah will refer you to a trusted mediator if you call and ask. Some mediators are so effective that they can accomplish this is under an hour. That is why mediation can be a great resolution for a lot of disputes. Conflicts can be resolved quickly and cheaply. Formal litigation is far more expensive and time consuming.

This article is offered only for general information and educational purposes. It is not offered as and does not constitute legal advice or legal opinion. You should not act or rely on any information contained in this article without first seeking the advice of an attorney.