Most Small Businesses fail within the first 2 years and there are many reasons why they fail. Luckily enough, there are online business marketing strategies you could incorporate into your business to help you stay in business even during recession.
Top 10 Reasons Why Small Businesses Fail
1. Bad Management Skills
Poor management skills leads to failure to be able to compete with other businesses offering similar products. This may be due to the small businesses not detecting changes in the market place as well as adapting to the use of technology.
We are living in a World which is evolving very rapidly and it is therefore important that good processes are established and followed.
Having established processes results to time being wisely used, increased productivity which leads to profitability. You might be having good processes in place but is everybody in the management following them or are some of them taking short cuts which is ruining your business?
2. Dissatisfied Employees
Employees are very important for the growth of the business and you should find out how to engage them in their work and to show them that you appreciate their input. Engaged employees are more likely to be loyal to your business and more productive.
3. Customers Changing their Buying Habits.
Before internet shopping was widespread, you could have loyal customers who bought from you again and again; but in this era of internet based shopping, people are buying the products they need at that moment and they are also using technology to research and compare the products from different companies before they make a decision to buy.
Are you only relying on your current customers or continuously marketing your business to bring in more customers? It is difficult to keep the same customers for ever and it can also be risky to depend on them; for example, if you have a few key customers who buy from you in large quantities, you might have to close your business if all of a sudden they decide not to buy from you.
4. Not Able To Keep Up With Customers Demands.
Due to technology, customers expectation is rising than it used to. There is a lot of information available in the internet which can be accessed within a few seconds and this is contributing to the customers’ demands. You should aim to have a very high standard of customer service as customers believe that their queries should be handled quickly.
Small businesses have to compete not only with other small businesses but also with the larger ones. It is therefore very important that employees are well trained on customer service. Companies that are unable to meet customer demands stands at risk of low sales, low profits and can even lead to closing of the business.
5. Not Having Enough Capital To Invest.
When starting your business, it is crucial that you plan cash flow wisely. It is advisable to have enough cash flow to take you through the first few months as you will be buying stock for your business and some suppliers will need to be paid within a short period before you sell the products. In most cases, the customers purchases with credit cards meaning that there is a period where the products have been bought but it might take a month or more before the money actually gets into your account.
When your business starts bringing in cash flow, the money should be reinvested back into the business. You as the business owner should plan for unexpected financial business problems and should make sure that there is a good record of transactions, otherwise it might be difficult to know whether you are losing money.
6. Not Understanding the Market of Your Business.
You should continuously be conducting market research to know whether the demand of your products is increasing or declining? Are you selling seasonal products or a mixture of products? Are you using technology to market yourself? Are you changing your way of doing things to match up with the market demand? Is the management staff skilled in their jobs?
When the company is expanding or growing, you might realise that you need to employ certain skilled people. Sometimes these new people might have to join at a higher level than some of your management team. This is okay
7. Bad Small Business Location.
It is important to be careful when choosing business location. If your business is a local business relying on local people, find business location which is suitable for your target market. You should consider whether your business fits the people living in that locality. How much are the products and their quality compared to the lifestyle of most people in that location? Is it easily accessible? how is the parking and the condition of the building? Is it an inviting location? Are there many competitors within the same location?
Those are some of the questions you should yourself when carrying out business location search. If you are only dealing with online customers, it does not matter much although it still needs to be easily accessible for you and any employees you might be having.
8. Not Having a Website or Social Media Presence.
Having a website helps you in attracting customers as customers normally research before they buy and if you cannot be found on search engines, then customers will not know that your business exists. You might be having a great business but if people cannot find you, then they cannot buy and your business might fail not because of lack of customers but because of lack of brand awareness. Having a website is also advantageous because customers can also buy online. If you do not have a website but your competitors have, then you are looking to lose your business to your competitors. If you require learning more on website and marketing strategies, l would recommend you visit www.wealthyaffiliate.com.
9. Doing Too much Without Delegating.
You cannot do everything yourself. You should always delegate those tasks which can be done by other people. Sometimes it is very hard to let go of some of the work you have put too much effort on to see success and you are worried someone else will not be able to keep to your standards. If you do not delegate, it might affect the growth of your business as you will not have time to see other areas which might be needing to be improved. You might be feeling that it will take a lot of time to show somebody else, but what you should know is that ones somebody else has taken over some of your tasks, you will free up time.
10. Personal use of business funds.
Keep your business and personal expenses separate. otherwise it will be difficult to know exactly how much your business is generating and it will give you a lot of problems when it comes to doing tax return. However, if you work from home, there are certain expenses which are taken into account when you are doing tax return; for example, council tax, telephone bills, internet bills, water bills and many more which are business related.
You could be doing all the right things for your business and because success is not guaranteed particularly in this digital World, it is advisable to incorporate something else into your business to help you generate more money. An example would be to include affiliate products. The best thing with affiliate products is that if you have an online store, you can use affiliate marketing to bring more traffic to your website which might lead to more sales and at the same time get a 2nd stream of income; your competitors might be doing it.
The other good thing is that with affiliate marketing, it is usually done online meaning that you can do it from anywhere in the World as far as you have an internet connection. To make matters even better, you do not:
- store the products
- handle customer service
- handle customer complaints
- process customers’ invoices neither do you handle any kind of payment; for example, you do not handle customers’ credit cards.
To Learn more about affiliate Marketing and how it can help your business CLICK HERE. CREDIT CARD NOT REQUIRED.
I have come across many successful businesses disappear almost overnight, you might also have come across such businesses. It is not because they were not good at what they were doing, it is because things moved so quickly until they found themselves stagnating.
The World is changing very rapidly and in order for your business to survive, you need to change as the World changes, and in order to change, you have to be learning continuously. To Access the knowledge and industry Experts in digital Marketing CLICK HERE FOR FREE. You will be surprised to see what you are missing.