When you start a new business, you’re naturally optimistic. You’ve got a great concept and have high expectations. But in order to succeed for the long term, you need more than that. 80 percent of new businesses fail within the first 5 years (source: NBIA). Why is this? Here are some of the reasons that businesses fail:
Lack of patience – Like with any endeavor, you have to put work into it, but for many new entrepreneurs they want instant results and that seldom happens. It’s more like gardening. It will take a longer than you think. There will be some trial and error, a little luck and a lot of effort before seeing growth. For most new entrepreneurs they often simply quit too early before seeing results. But if you’re willing to wait for it, your garden will bloom.
Wrong focus – People don’t really care about your business; they care about how your products/services will enhance and enrich their lives. Focusing on making your customers happy, giving them great value and acting on their feedback will keep your business on target.
Not developing relationships – Investing for quick returns, rather than building genuine relationships with customers, will set you up to fail. Relationships are based on honesty, caring, communication and doing the right thing for your people.
Not seeking excellence – If you don’t care enough to strive for excellence, your customers will go away. You must consistently want to do your best for your customers.
Personal weakness – We all have our weaknesses, but in business those weaknesses will keep us from success. You must be honest with yourself, surround yourself with a strong support group and/or partner with people who will help you overcome your weaknesses.
Most small businesses fail because entrepreneurs are not prepared, focus on the wrong thing and/or have personal shortcomings that will doom their business from the start. To avoid these pitfalls, keep a constant focus on delighting your customer, invest for the long term in your business, and always be willing to grow. This will help you ensure that your business will last for the long term.
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