Chapter 2: A brief Explanation as to why businesses are not successful
Apart from the importance of location and funding of a business, one can find a variety of other reasons that may lead to an unsuccessful business.
Failure to diversify
Whereas in older times, there was a lower selection of products and services available to the public and despite the fact that it was possible for a particular trader to hold a certain control over the market, this idea has become somewhat out of fashion. What does this mean for you?
It means that you can no longer sit back and continue to use the same business practices time and time again. If you have worked towards establishing a good market name for your products or services, you cannot always rely on that business tactic which worked.
Truth is with the new emerging businesses, a phenomenon that practically happen every day, you cannot rely on that which you have already achieved. You will need to diversify your business and this will in turn reduce the risks of losing your business. Instead, it will increase your sales since your products or services will be widespread and if one or more of them are not on demand at a given point in time, the other products or services that are on demand will aid your business generate income in times of need.
Imagine that you deal in dairy products and the market is currently low on milk which is the main ingredient and component of dairy products. What will you do? Will you close down your business or will you have other products or services to sell? Diversification does not necessarily mean that your business will not fail but it rather means that you have taken great precaution in calculating your potential market risks. This implies that you need to learn to adapt to the ever changing needs of society and the flow of the market at large. Thus, you should focus on increasing and expanding your business. This, however, does not mean copying other competitors.
Ensuring that your business covers a vast range of products and services implies the need to look at connecting and ancillary business activities that you can rely on when things in the economy at large and particularly in your target market do not go as planned.
Debt and Amicable Agreement
When your business is facing a financial crisis, it is easy to declare it quits. However, it is of high importance that instead of filing for bankruptcy procedures you try to reach an amicable agreement that discusses a revised payment plan with your creditors first. This is not only a way to ensure that you pay all the debts owed by your business but it will also allow you to keep your business running a bit longer to test the waters until you are in a position to decide whether it is feasible or not to continue to operate your business.
Use Professional Feedback
When most businesses are struggling they start taking measures that may hurt rather than assist in their business growth. It would be a proper business conduct if you ask the advice of experts such as accountants and legal experts as well as marketing pros that can help you cut on costs, know your rights and grants available as well as increase your sales.
An accountant can for example take a look at your financial statements and point you towards some unnecessary costs that you have been enduring throughout the operation of your business. At this stage it would be wise to cut on these costs. An attorney could assist you in applying for grants and could also explain to you the pros and cons of undergoing bankruptcy procedures. Attorneys can also advice you on steps that you can take in relation to your creditors including your financial provider. A marketing expert can on the other hand help you attract more business traffic to your doorstep.
Ideally, the feedback of these professional advisors is sought way before your business goes haywire. It is important to note that although these professionals may assist you, they may not always have all the answers that you need to save your business. Additionally, asking for professional advice is itself a pricey business choice and that is why it is an expense that is best incurred when your business is still fluid.
Follow up
It is surprising that many businessmen out there go to great lengths to organize and promote their company. However, when a prospect presents itself most businesses fail to take the necessary action to turn the prospect to an actual paying client. This for you means nothing more than a missed opportunity to increase the revenue of your business.
As will be discussed in this guide, it is of utmost importance that you follow up your activities. For example, let’s say that you went to a trade fair and have invested a large amount of cash for your stand and in promotional products to give away to potential customers. You ask the customers to give you their contact contents in return for the promotional product but once the trade fair is over you fail to follow them up by means of a phone call, emails or letters.
While it is true as will be shown in this guide that promotional products act like a constant repetition to your prospects that your business exists and that they got the product from you, you will need to learn to do some of the shaking up yourself to turn your prospects in to customers. Likewise, current customers need to be reminded that you have something to offer them. They need to feel appreciated. So when following up your clients’ database, you also need to take existent customers especially if you have special offers they can benefit from.
In short, failing to follow up your activities, promises and targeted actions can be seen as a missed opportunity to make your business more liquid.
Failure to Market
As will be demonstrated throughout this guide, marketing assumes a very important role if you want to grow your business. Marketing helps you establish a name for your business with the general public. Marketing is a useful tool to establish a brand. Any big company has learnt that marketing is the way forward if they want to grow and survive in this ever dynamic and unstable economy.
This guide will show you how to make the most of your marketing plan by means of planning, classification as well as by using promotional products which have the ultimate effect of reminding your customers that you are there as well as of providing them with handy information that allows them to contact you.
Conclusion
Sometimes, business failure is the result of lack of proper planning and of failure to put your products and services out there. This guide will show you how to create a presence among your target market so that you can attract more traffic to your business.
