Did you know that your small business has less than a 50% chance of surviving 5 years? Here are the top reasons you'll probably cause your business to fail--and how you can avoid that.
3. Introduction
Did you know that you have only a 10% chance of
succeeding in your business?
According to Fortune, 9 out of 10 startups fail. And guess
what’s the percentage of small business failure?
The U.S. Small Business Administration states that only
around 70% of small businesses will be able to survive their
first two years, dropping to a 56% chance to be alive in a
5-year perspective.
4. And it’s
all your fault.
According to the University of
Tennessee, 46% of business
failures are due to incompetence,
and 30% to unbalanced
experience or lack
of managerial
experience.
5. No personal skills
Must-have skills for entrepreneurs include:
• strategic thinking and planning
• leadership
• people management skills
• financial literacy
Without these, your business will suffer for a long time and then
fail.
6. No good products
People don’t want or need your products or services because:
• you didn’t research the market enough
• there’s just no need for them
• they’re of bad quality
• they’re delivered poorly or too late
Make sure you’ll be able to fulfill your customers’ needs and
expectations before going into business, not after.
7. No business plan
As the owner of the business, you should think of:
• the future and present challenges
• goals and deadlines
• competitors, target audience, and market overview
• financial needs and overall strategy
The lack of an effective business plan will kill your business
before you ever get it off the ground. Help yourself out.
Download InvoiceBerry’s free business plan template now.
8. No good marketing
You have ineffective marketing because you:
• don’t have an accurate strategy in place
• rely too much on traditional marketing
• spend too little time or money on it
• lack any online presence
Don’t forget the reach of social media nowadays. Check out
our guide on How to Boost Your SME & Freelance Social Media
Presence.
9.
10. Disregard competition
Your business is in trouble because you underestimated your
strategy. This is because you:
• think customer loyalty magically happens overnight
• underestimate your competitors’ reach
• disregard a competitive marketing strategy
If you don’t care enough about your customers to think about
keeping or increasing them, your competitors happily will.
11. No finance tracking
You’ve taken on too much debt but don’t know how much you
spent and when, because you:
• don’t keep careful records of incomes and expenditures
• don’t know who’s paid and when
• don’t know if you’ve done well recently or not
InvoiceBerry’s online invoicing software can help you track and
analyze the financial status of your business.
12. Your Small Business is
Likely to Fail and
It’s Your Fault
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