Why Businesses Fail

28 Aug

Why-People-Fail-US-cover1-150x150Few days ago, I was studying a book named “Why People Fail” written by Siimon Reynolds . It examines the 16 biggest obstacles to success and how we can overcome them. What I concluded from the book is that most of business also fails due to same reason.

There are a myriad of reasons that cause corporate failure, but here are six of the biggest:

 

 

NO CLEAR MARKETING FUNNEL.

People usually don’t just discover great products. If you build a great product then believe me nobody can beat you.

You need to develop a way to cost efficiently attracts leads, then convert some of them. This seems so basic, but hundreds of thousands of businesses start with no clear marketing funnel and then have to rely on luck or referrals to get customers in through the door.

What’s your marketing funnel? Will you start with print ads? Google ads? A free offer? Direct mail? Unless you develop a system for marketing, your chances of making money consistently are minuscule.

NO FOLLOW UP OF CUSTOMERS.

Once you’ve got an inquiry from a potential customer, you have to stay in contact with them. And keep following them.

So many business owners are unaware of the importance of this. Even if they get hundreds of inquiry from potential customers but they treat them as normal routine.

Give them a reason to leave you their email address (a free report, a discount, a newsletter) then keep reminding them that you exist and that you sell some good stuff. You’d be amazed how well this works.

This doesn’t just work for potential customers it works just as nicely for people who’ve already bought from you. Just stay in touch and many will buy from you again.

NO BUSINESS SYSTEM.

There are two types of businesses you can run. A talent based business and a systems based business.

A talent based business relies on the talents of a few key people. It can make more money but it creates dependencies. System based system is far better but it can be a bit of a hassle initially. But once you do the place will run smoothly and definately more profitable.

NO PERSISTENCE.

Few people encounter a year of obstacles and just lose hope that things can change. Believe me, the corporate world is full of examples of companies doing it tough, then emerging triumphant. So don’t loose your hope.

NO SELF BELIEF.

With persistence, self belief is vitally important to the success of a business. When you have strong self belief you think better, sell better and lead better.Potential clients sense it, are attracted to people who possess it.

You tend to become what you think, Whether you think you can or can’t, you’re right.

NO MARGIN FOR ERROR.

The final reason businesses fail is simply that they sail too close to the wind. All they need is a little bit of bad luck – a tough six months, a senior staff member who leaves for a rival firm, and they find that they simply don’t have enough cash to survive. There is no margin for error so take a calculated risk only.

So take a look at these six causes of business failure. Ask yourself whether any of them apply to you. If you’re weak in even one or two of these areas your entire business could be in trouble.

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2 Responses to “Why Businesses Fail”

  1. Mary Alex August 29, 2013 at 11:14 am #

    Good

  2. Mukund Chaudhary August 29, 2013 at 4:54 pm #

    Thanks to all the reader. Special thanks to Alex to give me first comments. I would love to see your feedback and suggestion.

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