‘If you don’t understand the details of your business you are going to fail’ – Jeff Bezos.
According to an article published by The Telegraph, less than half of new businesses will survive beyond the five year mark, with 20% going bust in the first year. The world of business may seem initially appealing, but it takes a blood, sweat, tears and luck to make it.
But without entrepreneurs stepping up to the challenge, who would replace the predecessors? We need people to step up to the plate and take on the challenge. And if they overcome the obstacles of the business world, then a great deal of wealth and recognition may come their way.
If you’re a budding business owner, then listen up: there’s going to be unavoidable hurdles. You can overcome these, but don’t fall prey to any of the following pitfalls.
- Leadership failure. Whether it’s a lack of experience in a management position, staff supervision or simply a lack of vision in leadership – a lot can go wrong when you’re calling the shots. If it’s a team of leaders, there could be internal disputes on how the company should be run. Or perhaps you’ve become reluctant to confront issues within the company and resolve them in a timely manner. Just remember that leadership dysfunction will lead to knock-on problems throughout the business, so act before it’s too late. There should be room for error within the business, but there’s a limit.
- Lacking originality in your ideas and values. Granted, you may have a fantastic product and/or service on offer, but your business could still fail. Why? Well, maybe you have a lot of competitors and you’re failing to stand out from the crowd. This is where you need to develop a customised approach to really sell your business to consumers. Why should they come to you for their needs? What will you offer them that no one else will? This is where a fresh approach comes into play.
- Inability to reach customers needs. In the world of business, communication is everything. Discovering what your customers requirements are in the service you offer is an essential factor in succeeding. Be receptive to customer feedback. If it’s positive, maintain that standard of quality. If it’s negative, adjustments are required. Make changes as and when necessary. Perhaps they’d love the product in a different colour, or maybe they’ve suggested an increase in opening hours. Wherever possible, meet those demands. If a certain product just isn’t selling, scrap it. Got a product that’s suddenly soared in popularity? Manufacture a larger quantity. Stay in touch with your customers and you’ll become a business worthy of investing in.