Launching a new business venture is always going to have an element of risk attached; that’s the nature of the game. Ask any seasoned entrepreneur and they’ll tell you it’s all about your business plan, which details every aspect of the venture and because there are so many exterior variables that you cannot control, there are many ways that the business could fail.
We’ve compiled a list of things that might contribute to the closure of a new business, in no particular order.
- Lack of funds – Money makes the world go round and running out at a critical time could spell disaster; if you are struggling to pay your staff and don’t have the money to pay this month’s utilities, the end is near. At the very outset, you should crunch the numbers, include everything for the startup, plus work out your running costs and add an extra 10%; in addition, you should have enough cash to support the business for the first 6 months, without making a single sale! If you don’t have that, you could be in for rough ride! Taking out a short-term business startup loan is a better option that to cease trading; where there’s a will, there’s a way.
- No Firm Marketing Plan – Building a website full of products gives you a baseline, but where do you go from there? One section of your business plan, the digital marketing plan needs to be on point and with the help of a leading US SEO agency, visit kingkong.co/ and see what they can do for you. You need a solid social media strategy to generate a large following, plus search engine optimization is a must. Millions of global consumers use Google to search for services and products and if your website is optimized, you will receive more inbound traffic. Moreover, you need to determine the best way to reach your audience. For example, if you’re a startup in south east asia, you must assess the different ways of connecting to different people with different cultures.
- Poor Management – This might be the inability to manage people, or other resources; the business owner is the CEO and must provide firm direction – the officer leads his men into battle – and you should have an air of confidence and be very enthusiastic about the enterprise. Making the wrong decisions can quickly lead to serious issues and if staff are demotivated, you have a real problem. Seeking out a business coach is perhaps the best solution, should it reach the point where the issues are affecting the business as a whole and even then, it might be too late. Here are a few tips for small business owners which is recommended reading.
- Not Competitive – If your competitors are offering a better deal, this will be reflected in your sales figures; it might be poor customer service or an inferior product, whatever the reason, you need an overhaul.
- Sudden Market Change – Trends come and go and if, for any reason, your product line is no longer of interest, a major turnaround is needed. Close your store temporarily while you come up with a whole new range of products that are in demand. Here is some US retail figures for this year.
The secret to success lies in your business plan and if you are a raw recruit, so to speak, spend some time with a business coach, who will put you right where needed.
