The document discusses the high failure rates of small businesses, attributing it to factors such as lack of planning, poor locations, insufficient capital, and failing to address customer needs. It emphasizes the importance of building the right team, understanding market demands, and the necessity of strategic planning for business success. Additionally, it highlights the need for businesses to develop core values and competitive advantages to differentiate their offerings in the market.

2. Small businesses
fail within their
first year.
Small Business
Failure Rate
1st Year 2nd Year 5th Year 10th Year
20% 34% 50% 70%

3. 23% Of small business fail because
they don’t have the right team
BUILD THE BEST TEAM:
NO ONE BUILDS A SUCCESSFUL BUSINESS ALONE
42% Of small business fail because there is
no market for their product or service
INVEST IN THE RIGHT IDEA

5. Established
Business
Invest in
the right
idea
Have a
product or
service that
solves a
need
Engage
your
customers
Build a
formidable
team
Market
your
product

6. It is the inability of a business outfit to meet its
obligation to its customers through product or service,
and to its owners through profit and other non-financial
benefits due to a non-financial or financial loss.

7. Reasons Businesses Fail
Lack of
Planning
A good business plan
does not guarantee
Success, good planning
does.
Planning includes
short-term and long-
term details
of what you want your
business to achieve.
“It’s not the plan that is important, it’s the
planning.”
Dr. Graeme Edwards

8. Benefits of Planning
• Places a business on a better position
• Gives the business a direction
• Helps the entrepreneur to think, decide, and act
more effectively.
• It keeps the business structure flexible.

9. Reasons Businesses Fail
Ignoring
customer
needs
Successful
businesses don’t lose
touch with their
customers.
They understand
what the customers
value most

10. Reasons Businesses Fail
Lack of
capital
It can lead to the
inability to
attract investors. It
shows that a
business might not
be able to pay its
bills, loan, and other
financial
commitments.

11. Reasons Businesses Fail
Poor
location
Poor location is a
disadvantage
that might be too
much to overcome.
Location is a
strategic
necessity. A poor
location might make
your
customer acquisition
costs too high.

12. Reasons Businesses Fail
No
Core
values
They are
the fundamental beliefs
that drive your
business.
They are your guiding
principles that should
remain constant. Even
as your company grows
your core values should
remain the same. Core
values can also serve as
a moral compass. .
If your business does not stand for anything,
it fall for anything

13. There is a difference between a business
termination and a business failure.

15. Marketing Quality Products
Quality is the totality of features and characteristics
of a product or service that bear on its ability to
satisfy stated or implied needs.
Quality is most
definitely a point
your customers
consider before
buying from you

16. EVERY BRAND SAYS IT IS THE BEST…

17. Businesses
must show
customers
why their
product is
more
valuable
Market your product based on

18. COMPETITIVE ADVANTAGE
Competitive
advantages are
conditions that allow a
company or country to
produce a good or
service at equal value
but at a lower price or
in a more desirable
fashion.

19. Any advantage over other
businesses is relative, not absolute
Customers will judge your product
base on its performance with other
products
Areas of competitive advantage
change over time. Customers’
tastes and priorities change as
products and the processes for
making them evolve
Having multiple types of
competitive advantage over other
businesses is best

20. • Provide a better product at a reduced costs.
• Differentiate your products and services.
• Form an alliance with another company
• Position your product right in the minds of
customers

21. A competitive advantage based on
differentiation means that your product
or service is different from those
offered by your competitors
Its value comes from the fact that you
can show customers why your
difference is better, not just cheaper.
In this way, differentiation can
effectively remove direct competition

22. Product Differentiation
All the products in the
market may be designed to
solve the same problem, but
they will not solve it the
same way.

23. Thank You