why do some business succeed and others fail

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Have you ever wondered why so many small businesses fail, while others succeed? Of course, there s not just one reason for that. Poor resource management, an inadequate business plan (or the lack thereof), failure to track finances and ineffective marketing are probably the most common reasons that lead small businesses to failure. Success is not just a matter of luck в it s a combination of factors that must be carefully considered from the very beginning, otherwise the result will unavoidably be failure. Take a look at the most common mistakes small business owners make в and avoid them! 1. Inadequate Business Plan
A business plan is essential to any small business owner who wants to succeed, as it forces you to think of the future and the challenges youвll face, establish goals and work to achieve them. A well-thought-out business plan also forces you to think about your marketing and management plans, competitors, target audience, financial needs, and overall strategy to achieve all of your objectives. The lack of an effective business plan will kill your business before you ever get off the ground. 2. В Failure to Keep Track of Finances One of the most common reasons why so many small businesses fail is taking on too much debt. If you don t keep careful records of all money that comes in and goes out, and pay very strict attention to your finances, you risk getting into debt as well. will be the solution to all of your financial needs в check out our plans and pricing. 3.

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Ineffective Marketing Despite the growth of digital marketing (and especially SEO and social media marketing), many small business owners prefer the old marketing model в print, TV and radio ads в, focusing very little (or not at all) on the online environment. Even if your flyers are attractive enough to get your prospects interested in your business, not having a website and a strong online presence will make them back away and go to one of your competitors instead. to get more customers and revenue; create a website for your company to help prospects find you and turn into customers. 4. Underestimating Competition Customer loyalty doesn t just happen if you don t do anything to earn it, yet many small business owners mistakenly think it will happen somehow. Even if your product is better than your competitors, don t forget that many of them might have been in business for longer than you, and they have already established a strong customer base. Good marketing, as well as a solid web presence, will help your business stay competitive while getting more potential customers interested in your products and services. Never underestimate competition and just expect orders to come to you somehow в it will never happen. If you don t care for your customers, your competitors will happily will. blog-signup-fix:hover{ opacity:1! important; } Why do some small businesses fail, others barely survive, and yet others thrive through recessions? Here are a few insights: There is a common myth that entrepreneurs are big risk takers.

But most studies show the exact opposite: successful entrepreneurs avoid risk wherever possible. But they do take calculated risks all the time. They develop new products, enter new markets, pull out of existing markets, change their product packaging, form new strategic alliances, etc. But they never jump in without looking to see if there is any water in the pool. When business slows down, the first thing most businesses cut is marketing and sales. They view marketing and sales as overhead, not as an investment. This is the exact opposite of what most successful entrepreneurs and business owners do: they. In some cases, that means a move away from БtraditionalБ marketing (print, yellow pages, etc. ) toward Internet marketing and social media (LinkedIn, Facebook, etc. ). In other cases, it can mean cutting ties with unprofitable customers and strengthening ties with the most profitable ones. The result is usually an increase in market share and improved customer loyalty, at competitorsБ expense. It seems pretty obvious that the world is changing faster than ever before. Successful companies donБt just react to change, they anticipate it. Then they either flow with it or they drive it. Companies that resist change are more likely to fail, or at best, barely survive. The entire U. S. auto industry is an example: GM, Ford and Chrysler all spent decades lobbying against improved CAFE standards and emission controls.

If they had instead embraced the fact that most Americans want clean air, improved gas mileage and safer cars they could have out-maneuvered Toyota, Honda, and others. Successful companies make decisions carefully, but once they make a decision, they act quickly. GM is, unfortunately, another example of what not to do. Until they restructured, GM was so slow and unmanageable that a typical initiative was reviewed by at least 60 managers before it went anywhere. The usual result was that most initiatives were either killed outright or took so long to get through the system that they were effectively dead anyway by the time they emerged. Since coming out of bankruptcy,. They have dramatically streamlined management and internal decision-making, and even brought in some outsiders. Small companies have the ability to act swiftly. If your company is small but major ideas and projects take years to bubble up to the surface, you have a problem. Successful companies listen to their employees, their customers, their partners, and even their competitors. They are good at Бthinking bigБ, but they also pay attention to details such asб employee morale, paying invoices on time, customer service, marketing consistency, sales training, etc all of which. No matter how large or small your company is, make sure you are not just gathering data, you also need to analyze and act on it. This should happen at all levels of your company, not just in management meetings and strategic retreats.

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