According to Bloomberg, 8 out of 10 businesses fail within the first 18 months of operation. That’s a terrifying statistic if you’re a business owner. That simply implies that 80% of those who started business either online or offline will fail in it too.
Why do businesses fail? What can make your business fail? How can you avoid them?
1. Lack of Planning:
For many individuals, they desire to be engaged in a business just to make money or to be able to brag about it. They have no clear-cut idea where they want the business to go. They only plan to start a business but they do not do real planning on how to sustain it. Your plan is like your aim. Planning involves everything you need to do and put in place to get to your aim. A business without proper planning will come crashing in just a matter of time. The popular 6P formula states that: Proper Prior Planning Prevents Poor Performance.
2. Lack of Discipline:
Having an online business can gift you with plenty of spare time and the liberty to work when you want. This same benefit can be a curse if you do not know where to draw the line. You need discipline to be able to work even when you don’t feel like working. You need to sustain your desire to work irrespective of whatever may be limiting you. A disciplined businessman with little capital will always outdo an undisciplined businessman with huge financial capability.
3. Lack of differentiation:
Many people often attempt to imitate others in their style of business. They think they can create success by imitating the top shots in their niche. It does not work that way. There can only be one Nairaland. There can only be one SMEDigest. There can only be one Linda Ikeji. Rather than copy them, pick the lessons and build your brand. If you imitate others, you will only remind your customers of the real thing. Build your brand. Be different. It is what will give you visibility. You can learn from different experts and be yourself.
4. Lack of capital:
This point can be seen either as lack of capital or refusal to invest capital. If your business would grow, you may need to spend some money. Sometimes, people want everything to come free. Don’t be tight-fisted about your business. It does not just need your time and attention but your money. This is what will make your investment in the business complete.
5. Lack of focus:
Focus is a result-multiplier. Business requires focus. The online world on its own can be very distracting. The thrills of the social media and multiple fora can easily divide your attention. You must always be conscious that even though you enjoy doing what you do, it is beyond fun; it is a business. You must therefore treat it as such. Be grounded in the purpose of the business and constantly choose to ignore every distraction. Focus is not just saying yes to what you have to do but focus is the ability to say no to those other thousand things that may come by while trying to do what you must do.
6. Lack of valuable content:
Content is everything. Content is what will keep people coming back to you. If they realize that there is something that you offer that they probably cannot get anywhere else, they will keep coming to you. Whatever the mode of your business may be, ensure the value is of a high standard. Create strategies to multiply the value that your audience can get from you and watch their loyalty become yours.
7. Lack of accurate knowledge:
Knowledge is everything in today’s world. One piece of knowledge at the right time is enough to take your business to a new height. Your continued relevance in your niche will be dependent on what you know that your competitors don’t. Always search for new information. Information will save you years of trial and error.
No one desires his business to crash at any time. It is wisdom to know what a business needs at the moment for its survival and success. Always be on the lookout for what your business needs at the moment to keep flourishing.