THE TOP 5 REASONS YOUR SMALL BUSINESS IS FAILING AND THE SOLUTIONS
It is heartbreaking to invest time and effort into your business only to watch it slip away while you stand powerless, unable to fix it.
Good news! If you are reading this, you are seeking knowledge to either tackle this problem or prevent it from happening, so congratulations, you are taking the right steps. Your business is a living, breathing organism that requires tender care while it is still in its early stage. It is the kind of food it eats that determines how big it’s going to grow. Look at it this way; Businesses are like babies, which is why most entrepreneurs refer to a business idea as their brainchild.
Most businesses fail because their owners keep repeating an action that unknowingly is slowly damaging their business. Let us look at some of them…
1. You are in it for the money
You are probably thinking, why else will I be in business if it is not to make profits? However, if your business is at its early stage of growth, it is not the right time to start taking from it; instead, develop strategies to help it increase its profits.
Solutions
- Take bookkeeping seriously, and use apps that help you properly manage your business .
- Pay yourself a salary so your business profits do not become your treasury because soon, that treasury will run out.
2. Your marketing efforts are low.
Never think your business is too small to have a marketing plan. Every business has a solution it is trying to offer its target market, but guess what? Your business isn’t the only one offering that solution. You have competition working round the clock to improve their services and products. And your customers are also evolving in their tastes and preferences, so be on your best game.
Solution
- Understand what makes you unique; this involves taking a critical look at why you started the business. Every business should have a story
- Your story helps you understand your goals, how to go about Branding, finding your target audience, and developing a media strategy.
- Study your competition, but do not copy them. For example, if your competition has a good media presentation on Facebook, then have yours on Facebook and other platforms. Ensure that the solutions they do not offer are part of your business. That is one of the ways to stand out.
3. Lack of a good customer service
Who your customers encounter can change their opinions about your business. Think about a time when you tried to use the products or services of a brand, and you had to deal with their customer representative who made your encounter with the brand unpleasant. How did that affect your perception of the brand? Have you probably stopped patronizing them, right?
That is how important having good customer service is. Your business is highly likely to be known for delayed replies when asked about its products and services.
Solution
- Carry out a survey to know what customers think about your business and ask honest friends who have patronized you; this will help you know what area needs improvement.
- Ensure your products and services are of excellent quality; customers will likely not return if they purchased bad products from your business or got bad services from you.
- If your business is still in its early stages and you probably run everything, there is a high chance you are exhausted. Instead of informing customers that you are available 24 hours, indicate when you can attend to calls and messages so that you won’t be in the wrong for not replying when they send a message outside that window.
4. Lack of understanding of your Target customers
You cannot run a business based on your presumed customers’ needs. Your business might fail because the solutions only align with the needs you presume your customers to have and not what they have.
Solution
- Carry out listening surveys to understand them, keep up with the current trends in your business through the internet, and keep asking questions to know more. When you do this, you will be best suited to cater to their needs, and this would make your business a go-to.
5. Lack of Patience
You probably expect that in your first year, your business should be raking in profits, and you should already have many customers. Well, as much as we all want that, it may not happen as fast as we want.
Solution
You’ve got to have patience; as stated earlier, your business is like a baby with its different stages of growth. Soon, that baby will be an adult who you do not need to spoon-feed anymore. Give it time, keep investing and keep growing.