The idea of having a business is attractive to a lot of people. There’s no answering to anyone else, and you can control where your business goes. However, business failure is still all too common.
All of those guides out there tell people how to make sure failure doesn’t happen. But does anyone have time to read those? Well, at Green Tree Content, we like to mix things up a bit – so we’re bringing you a reverse guide.
Get ready to learn 10 ways to make your business failure inevitable. Avoid these errors, and you could be in with a chance!
Business Failure Stats
The pandemic changed the way we work, communicate and approach the future. It was essentially a reset period for many that gave them time to think about where they wanted their life to go in the future.
Some people moved out of the city into a rural location, while others decided they’d never walk into an office again – and many explored the possibility of starting their own business.
Unfortunately, statistics show that very few businesses make it to become profitable. Here are just some:
- Only around half of companies survive for five years (Forbes)
- 90% Of UK Startups fail in the first year (ICSTD)
- Millennials and Gen Z people are 188% more likely to have a side business than baby boomers (Oberlo)
- Small businesses account for 36% of the UK’s economy (Business Advice)
So, as you can see, there’s a lot of competition among small businesses, and it’s a fight to survive. However, it is possible, and many companies can survive – and grow into larger enterprises.
Let’s look at 10 ways to ensure the failure of your business.
Do Everything Yourself
We like to think of this as the classic Dad mistake. You know the type. They refuse to hire someone for that complex assembly job or insist they can fix the leak themselves.
Unless they know what they’re doing, it will inevitably lead to more damage and higher costs.
If you think you can handle every single element of your business alone, you’re in for a harsh awakening. It’s literally impossible for one person to be good at everything, and trying to do it all yourself will only lead to burnout.
What you need to do instead is focus on your strengths and delegate or outsource the rest. This way, you can focus on what you’re good at and leave the rest to someone else who’s equally as qualified.
Who Cares About A Target Audience? Not Me!
Another huge mistake businesses make is not defining their target audience from the outset.
You might think that your product or service is for everyone, but that’s not the case. To make a real impact and connect with customers, you need to focus on a specific target audience.
This will help you create better content and products, but that’s not all; it could also save you a lot of money in advertising costs. You can use targeted ads to reach your designated audience much more easily than if you were trying to appeal to everyone.
Lowering Your Prices
When starting out, it’s tempting to undercut the competition and offer lower prices than everyone else. After all, what’s the harm in trying to get a few extra sales?
The problem is that this will only devalue your product or service in the eyes of potential customers. If they see that you’re offering a similar service for a fraction of the price, they’ll wonder why.
It might seem like an excellent way to get business at first, but it will only lead to problems. Once people realize that you’re not providing as much value as the competition, they’ll start to look elsewhere.
Not Defining Your Goals
Many businesses make the mistake of not having any defined goals from the beginning, making it difficult to track progress and measure success.
Without clear goals, you’ll quickly lose sight of what you’re trying to achieve and go in circles. This is a sure-fire way to kill any motivation you have, and it will eventually lead to the failure of your business.
So, make sure you sit down and define your goals from the outset. Write them down and make them as specific as possible to stay on track.
Not Investing In Marketing
One of the most common mistakes businesses make is not investing enough in marketing. With the advent of social media, there are many opportunities to reach potential customers for relatively little cost.
Perhaps the most effective way to build a successful business is through maintaining a blog that acts as an information hub for your audience. Doing it yourself will take a lot of time, but using a professional blog writer can save you more money and time because they know how to create content that converts.
However, many businesses don’t bother with marketing or try to do it on the cheap, which is a huge mistake and will almost certainly lead to failure.
If you’re not willing to invest in marketing, you’re not going to reach the people who need to see your product or service. You might be able to get by for a while without spending much on marketing, but eventually, it will catch up with you.
Relying On A Single Income Stream
Another mistake businesses make is relying too heavily on a single income stream for their business and not being willing to explore other avenues. For example, you might begin an e-commerce store selling bags but ignore other opportunities.
The problem with this is that it makes your business very vulnerable to changes in the market. If your only source of income dries up, you’ll be in big trouble.
It’s essential to have multiple income streams so that you can weather any storms that come your way. Even if it’s just selling another product or using affiliate marketing, your business will be more stable and less likely to fail.
Not Asking For Help
Starting a business is a huge undertaking, and it’s one that you can’t do alone. There are so many moving parts to a business, and it’s impossible to be an expert.
This is why it’s so important to ask for help when you need it. Whether hiring employees or outsourcing specific tasks, making sure you have the right people on your team is crucial.
Not asking for help is a sure-fire way to set your business up for failure. You’ll quickly become overwhelmed and won’t be able to keep up with the demands of running a business.
Eventually, this will lead to burnout, and you’ll have no choice but to close up shop. So, don’t be afraid to ask for help when you need it!
Getting Stuck In Your Ways
One of the biggest mistakes businesses make is getting stuck in their ways. They find a successful formula and then refuse to change, even when it’s clear that things are no longer working.
The world is constantly changing, and your business needs to change with it. If you’re unwilling to adapt, you’ll quickly become outdated and irrelevant. This is a death sentence for any business, so make sure you’re always open to change.
A classic example of businesses getting stuck in their ways is the rise and fall of Blockbuster Video. The company was the go-to place for film and game rentals – but they refused to accept that streaming would soon take over!
Fast-forward a few years, and Blockbuster is a thing of the past, while Netflix and other streaming services are rapidly making DVDs obsolete!
Not Listening To Your Customers
Your customers are the lifeblood of your business, so you must listen to them. They know what they want and need, so if you’re not giving them what they’re asking for, you will have problems.
There are several ways you can get feedback from your customers, including surveys, social media, or even just talking to them in person. Make sure you’re taking advantage of them!
If you’re not listening to your customers, you’re missing out on a crucial source of information, and a lack of understanding will lead to business failure.
Not Having A Plan B
When starting a business, it’s essential to have a solid plan. But what many companies fail to do is have a Plan B in place if things go wrong.
Things will inevitably go wrong, so it’s essential to be prepared for when they do. Your business could quickly crumble if you don’t have a contingency plan.
So, make sure you have a Plan B in place for when things go wrong. This could be anything from having extra cash on hand to outsourcing certain tasks. Whatever it is, make sure you’re prepared for the worst!
Protecting Yourself Against Business Failure
These are just a few of the many ways businesses can fail. If you’re not careful, you could easily make one (or more) of these mistakes. So, take the time to plan and prepare for success. It’s the only way to guarantee your business will thrive! Thanks for reading!
I hope this was helpful! If you have any questions or need help with marketing your company and protecting yourself against business failure, please don’t hesitate to drop us a line.