It is to be disappointed, but it is said that 8 of the 10 start-up Entrepreneurs fail within the first 18 months of establishment. So 80% fall.
But why? What can we learn from this colossal small Business failure, a lesson we can apply to achieve our business aspirations?
It is true that if you look superficial, the main reason why a business fails is the lack of money.
But flaws start long before the day of heavy financial collapse comes.
Here are some of the reasons:
Reason 1: have not kept close contact with consumers through deep dialogue
Being in the position of a customer and understanding his or her view is imperative to the success of a business. The consumer keeps the key to your success and finds it in his pain, behavior, dreams, values, and goals he strives to attain.
Solution: The key lies in dialogue. Twitter does not count here. You need to have a real dialogue with your customer. What do you prefer: to talk to the customer at the start and understand that you are wrong or to talk after a year when you have spent tens of thousands of euros and still understand that you were wrong.
Reason 2: There is no genuine unique offer on the market
There is a lot of noise from and for those who have no unique value and want to stay in the market. In most cases, this kills business slowly. By struggling with survival, there are entrepreneurs that few consumers and few income extending their existence that way, and throughout this painful period they wonder if that is all that can be done.
Your Solution: Entrepreneurs who do not take this problem seriously have trouble. Find out what the real value your business brings and why it is different from the rest of the market.
Reason 3: Do not communicate your offer clearly, thoroughly and convincingly
"The problem we have here is the lack of communication," said Neumann's famous statement.
Many entrepreneurs work hard to find their point of differentiation but disrupt the job by not communicating to the consumer in a clear and convincing manner. Many entrepreneurs fail completely because of this.
Your Solution: It's Simple. Learn how to communicate. If you are an entrepreneur, you should learn the language of the customer. Listen well to what they are saying and respond by telling what you are offering. Focus on 3 points:
- Be clear - do consumers know who you are and what is your offer for them?
- Be concise. Do not prolong the disruption without need. Tell what you have to say, in a short and clear way.
- Be persuasive. Use words that encourage your customers to take something.
Reason 4: Failure of leadership
This is something you see in the media all the time. Many young entrepreneurs sabotage themselves because they are not able to make decisions or make wrong decisions as well as low leadership skills.
Your Solution: Awake and understand that is the company you created. You are the founder, you are the leader. It does not matter whether you have one or a thousand thousand workers. If you lack the skills to connect with people, learn them. If you have problems with anger, learn how to manage it. Successful entrepreneurs invest in personal development.
Reason 5: Inability to find a profitable business model with secure revenue sources
After all, profit has a downturn. If you fail to reach a product that is required by the business and which brings money, you have failed. Entrepreneurs can solve all four of the above problems, but if the latter is not solved, then failure is guaranteed.
Your Solution: New businesses must act with caution and not spend large amounts to produce their secret product. Should use methodology as low cost, efficient marketing products.
Think fast and act quickly. If you fail anyway, do this earlier, before spending too much money. Or find the profitable model for your business.
Otherwise, you will enter 80 percent unsuccessful.
