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Small businesses
fail within their
first year.
Small Business
Failure Rate
1st Year 2nd Year 5th Year 10th Year
20% 34% 50% 70%
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
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
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.
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
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.
Reasons Businesses Fail
Ignoring
customer
needs
Successful
businesses don’t lose
touch with their
customers.
They understand
what the customers
value most
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.
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.
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
There is a difference between a business
termination and a business failure.
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
EVERY BRAND SAYS IT IS THE BEST…
Businesses
must show
customers
why their
product is
more
valuable
Market your product based on
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.
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
• 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
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
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.
Thank You

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Why Small Businesses Fail

  • 1.
  • 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
  • 4.
  • 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.
  • 14.
  • 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.