What are the Reasons for businesses failure?
If you Google “reasons why businesses fail”, I’m sure you’d get lots of theories and statistics but from my study I’ve been able to keep it to just two facts.
Lack of Differentiation
Imagine a street where there are several vendors that sell small chops.
Naturally, 30% of those stands would do better than the remaining 70%(it’s just the way sales works).
Now, if you asked any of these sellers “why should I buy from you and not your competitors?”
You’d be surprised how many people won’t be able to give an answer.
This is one of the major reasons businesses fail.
The sole reason why 5% of the 30% would keep taking most of the customers is differentiation or Branding; that is setting yourself apart from the status quo with things like:
- Customer Service
- Hygiene
- Location
- Aesthetics
Problem of a Sales Strategy
While planning a business strategy, people deal with the product and operations but never plan how they would get customers to make sales.
Sales is the major thing that matters because it is through sales you create revenue and keep your business alive.
If you’re a planning a business, a market analysis and sales plan has to come first.
People just wish for customers to come after they’ve set up shop but that would never work especially in a competitive market today.
If you plan on starting a business, find your customers first.
