You can have the best concept, the best staff and the greatest amount of passion in the universe, but in the cutthroat world of business, it takes so much more than that to potentially be successful. Sometimes businesses can fail without it being anybody’s fault but bad luck or bad timing. Nobody has it easy, but it can be easier. Here are five of the top reasons new businesses may not work out.
No Market Research
It’s easy to understand why a budding entrepreneur with financial backing, a bit of experience and a lot of passion would assume that their business will thrive, and many do. However, if you haven’t done the adequate amount of market research, you could be heading for failure. Market research includes checking to see who your competitors are (including where they are in relation to you, how long they’ve been around for, etc.) and whether there is a need for your type of business. You can find this out by conducting questionnaires and talking to people from the local area and more.
No Financial Backing
Whether it’s via a bank loan, a guarantor or your own personal finances, without financial backing from day one, you may find yourself fighting an uphill struggle to survive no matter how good you are at what you do. You need to consider start-up costs, which will include a building lease, day-to-day running costs, equipment, and wages. This is often the area that trips up new businesses before they get the chance to get settled and doing well, and it’s a great shame when it happens.
From the moment your business opens, you have to be professional on the surface and underneath, and that comes from being organized. You don’t want to be paying people in brown envelopes of cash because you’ve not set up a financial system yet. You want to have folders in place ready for you sort any admin. This may include using a check stub maker to create invoices, for example. Keeping financial records is also essential. If you don’t get on top of things like this on day one, they will start to swamp you, and it’s going to be a hard slog getting your business to run effectively.
Not everybody who has started a business is a born leader, and it can be tough for some new business owners to get what they need out of their employees, who will be looking for somebody to show them the way. It’s important that management has systems in place immediately so that people can get on with their daily tasks without constant supervision, which slows everybody down and puts the business behind from the start.
Business owners need to be more than managers. They need to be leaders, steering their employees towards success with staff training and a developed plan for the business so that the business can survive and thrive in the long term.
No Online Presence
With all the emphasis on getting the business ready to launch and run effectively, business owners often neglect their online presence. A poor looking website and empty social media channels won’t fill new clients or customers with feelings of trust and legitimacy. Customers will want to see regular updates on your website, Facebook page, Twitter account and Instagram stories filled with content to show that you have a face and a story. It goes a long way to building a connection with people, especially in the modern digital age.