The 2019 statistics indicate that approximately 20% of startup businesses fail in the first year. However, those statistics might not apply in 2021 due to COVID-19 pandemic related issues. Most enterprises experienced declined sales while others closed down.
While there are a myriad of conditions that can make a business fail, usually it is due to the owner’s mistake. Could you be making some costly mistakes?
Here are the four reasons your business is not succeeding:
- Starting a Business for the Wrong Reasons
Why did you start that business? You see, most people hop into the business world for all wrong reasons. Don’t start your business because your friend seems successful.
Or maybe you read about it in a magazine. If making money is the only motive for your business, then you’re headed down the wrong path. The industry you’re operating in should be fulfilling and make you happy.
Ensure you have a passion for what you do. If you’re into blogging, do it passionately and with love such that people will yearn to read your blog posts. Ensure you have determination, a positive attitude, drive, and patience.
Quitting should never be a choice. When others are throwing in the towel, you remain the only one standing. You learn from mistakes and don’t let failures defeat you.
- Too Small Market or No Market at All
You might have the best business idea but if the market is too small, be sure the business will fail. You need to determine if there is a market for your products or services. Also, determine if the market is big enough to make your business thrive.
For instance, if you’re in the food chain business, get to know your target audience. If you’re offering cheap food, then your market can be college students. Then set up the restaurant near colleges and universities.
More so, keep tabs on the customers and market trends.
- Few Payment Options
Today, commerce knows no borders. Revenue and customers can come from any point of the globe. If your business is limited to one or two payment options, it means you are deterring potential customers from buying your products or services.
Limited payment options lower shipping rates leading to reduced revenue or losses. There are reliable websites with information on what you need to know about NFC payments and other options.
Before you set up a business, consider payment methods and options such as PayPal, Maestro Card, Payoneer, Direct debit, among many others.
- Inadequate Capital
Most business owners often make this mistake and fail even before they stabilize their business. Others might have unrealistic expectations. It’s crucial to ascertain the money your business will require.
Don’t forget the costs of starting and running a business. You need to realize most ventures take about a year or two to stabilize. Thus, if you have insufficient funds, your business will destabilize.
The Bottom Line
No one sets up a venture with the aim of failing. We all want to succeed, but only a few are ready to do the right thing. If you avoid the above mistakes, your business will grow in leaps and bounds!