Friday, December 23, 2016
Some Top Reasons New Bidnesses Fail,…
Yes I know I spelled business incorrectly but sometimes I like to type how I actually pronounce my words. Lets just go with that,…
I've looked at several different sites online after searching for a list of reasons why a new business or existing one for that matter, closes its doors.
Some sites had five or six reasons, some had ten and a couple had three reasons. Some of the reasons why were listed on almost all of the sites I looked at. These make the most sense to me,….
1. Almost all the sites listed location. This has to be near the top of my list if not the top reason why new business fails. The old adage, built it and they will come, isn't always true. People need to “see” you and sometimes they need help even in high traffic areas. Example,… putting a major store such as a Walmart or Publix in Waterloo just isn’t going to happen. Why? Location.
2. Overspending,… Many new entrepreneurs burn through their startup capital before their cash flow is positive. This often happens because of misconceptions about how business operates. If you’re just starting out, seek out seasoned veterans you can turn to for advice before making big expenditures.
3. Poor customer service and overall employee incompetence will quickly sink your business. Make sure your employees place a premium on customer service. Develop systems and processes for how tasks should be accomplished, and create internal controls to monitor them. You need to be a people person,… listen to what the customer says, wants and show you genuinely care about them. Get to know them if they come into your business on a regular basis. Learn their name, people like it when you mention their name and remember them.
4. Advertise,… Customers can’t do business with you if they don’t know you’re there. It doesn’t cost a lot to advertise and promote your business through online marketing, social media, email, local search, and more. Some of the best advertising is done on Facebook. Make a business page, create small events, get people talking about what you have to offer.