There is no definite answer as to why businesses fail. It can be due to a failed strategy that your company did not plan through to survive in the long run; it can be due to your continued ignorance of your customer’s concerns or just because of your lack of management of your resources. While some mistakes are unavoidable, there are some human caused blunders that can severely cost you if not handled and stopped at the right time.
As new startups continue to emerge, it is likely that only a few of them will be able to survive the fierce market competition. In fact, according to Bloomberg, only a mere 20% of the total novice entrepreneurs can thrive longer than the first 18 months of starting their business. The reality is no doubt sad and bitter but gives us more reasons to be careful and learn from the mistakes.
Differentiate or Die
Many businesses operate with the belief that the service they are providing or the product that they are selling is unique and will be used by all. Little do they know that there are several other businesses that offer similar services and will cause a serious competition.
When a customer has abundant choices to choose from, it is no surprise that they will choose your competitor over you due to a small difference in price or quality. There are several examples of big companies and names that fell apart due to their inability of offering something special to their consumers besides what already existed in the market.
Know Thy Customer
Understanding of the customer needs and planning your service offerings based on that can greatly influence a business success. As Thomas Edison once famously said, “I never want to build something that nobody wants to buy.”
Regardless of how genius you think your idea is, it is worthless if the customer is unable to understand its usage and purpose. A business that operates without acquiring proper knowledge about its customers from their likes, interests, behavior, and values will eventually run short of ideas to attract them towards their product/service.
No Shortcut to Success
There is no such thing as an overnight success. At least not in the business world. Every move should be carefully planned and implemented. Building a business is a slow and lengthy process and must be dealt with patience and determination, even Rome was not built in a day.
Using shortcuts and tricks can give your business a fast pace but not for long. Whether it is about the website design or building of your brand image, everything takes time and must be strategically planned. It is better to invest a considerable amount of time and energy to gain a comprehensive understanding of your business insights before making the big leap.
Know How to Fail
Finally, it is extremely important that you accept failure and the possibility of failing at some point of your business venture. It is better to be well-equipped with a backup plan rather than live under the false assumptions that somehow thing will turn out in your favor.
Every entrepreneur must realize that it is completely normal to fail and it is through this failure that you can regain your strengths and conquer back with greater force. According to Confucius, “Our greatest glory is not in never failing, but in rising every time, we fall.”