3 REASONS WHY BUSINESSES FAIL
Let’s face it, starting a business is the easy part. Keeping it going for 2, 5, 10 or even 20+ years is the tough bit. Here are 3 key reasons why businesses fail.
REASON NUMBER 1: A gradual lack of motivation
During the early stages of setting up a business, life can be good. You are enthusiastic, determined and highly motivated to make your new business venture succeed.
The problems occur when, soon after you launch your business, you sell either nothing or very little. Most entrepreneurs do not plan for what they are going to do if they fail to get any immediate sales or traction, and this can lead to a lack of motivation and interest.
Whenever I set up a new business, I always have a strategy which determines:
- How I intend on getting traffic to my website;
- How I intend on building trust with the ‘potential customers’ who visit my website;
- How I intend on testing and improving website conversion rates.
Once you see your business working; i.e. you are generating sales and leads, your motivation levels will rise.
The solution to the problem of demotivation in business, is to plan for every eventuality. What am I going to do if I do not reach my sales target for the first quarter? What am I going to do if my customers do not visit my website or my shop? What if website conversion rates are low?
Plan for every eventuality and you are far more likely to succeed.
REASON NUMBER 2: Failing to build trust with your clients/customers
One very important thing I learned early on in my entrepreneurial career, was that people will only buy from you if they trust you.
It is very difficult to sell something to someone if they either do not know you, or they do not trust you.
The first thing to do when determining how to build trust with your clients/customers, is to ask yourself the following question:
How do I shop, both online and offline, and what makes me part with my hard-earned cash?
I would hazard a guess that it is either one or a number of the following:
- The business you are making a purchase from is a brand or name you can trust.
- The company you are buying from has great reviews online.
- The company you are buying from has a solid guarantee and returns policy.
Of course, there will be other factors involved that determine whether you decide to make a purchase.
There are many ways you can build trust with your customers, but the following two factors have always worked very well for me over the years:
- Always responding to customer queries quickly.
There is nothing worse than sending an email to a company and not getting a reply for 2 days or more. The amount of businesses that fail to grasp the importance of replying quickly is astounding. Always respond quickly to your customer’s queries, as this is a sure-fire way to build trust quickly.
- Do not force a sale onto a customer.
Pressure selling is history. In the modern world, unless a person desperately needs to make a purchase now, they like to take their time and consider their options. If you understand this, and you are prepared to be patient with your customers, you can build a solid customer-base that will come back to you time and again.
REASON NUMBER 3: Visibility, or a lack of it!
There are many, many businesses out there right now. This means that if you want to get noticed, you have to be smart about it. You have to do things differently, to get the attention of your customers.
A multi-strand approach to marketing is vital for you and your business to get noticed. Here are a small number of things that I currently implement within my business, to get the attention of my customers:
- A consistent social media marketing strategy.
Personally, I do not use social media to sell. I use it to raise brand awareness. Whilst you can use social media to drive sales, it can be a very effective tool for getting your business noticed.
- Pay-per-click advertising.
Pay-per-click advertising can work; providing there are sufficient margins within your product or service to pay for it.
- Loss leader.
Whenever I launch a new product within a new genre, I will consider selling it as a loss leader. A loss leader is effectively selling a product as zero or minus cost, with the understanding that you intend to upsell later on down the line.
- Lead generation
Let’s face it, people like something for free. This is where lead generation can work to great effect within your business, and it can also help you to build trust between you and your customers.
YouTube traffic is free. This means you have the power to get noticed for zero cost. My YouTube channel (CareerVidz) has received in excess of 2 million views since I first started it. That’s 2 million people getting to see and hear about my brand, at absolutely no cost to myself or my business.
Richard McMunn is a former firefighter, best-selling author and Specialist Consumer Publisher of the Year. To learn more about how he can help you become a published author, please visit: http://www.BookSeminar.co.uk