Why do a lot of small companies fail? Most small businesses fail in their first five years. It doesn’t matter whether you are a seasoned professional or whether you are just starting out because statistics like this can be scary to say the least. If you want to make sure that your company is not one of them, then this guide will help you.
You’re Not Planning Enough
The reason why a lot of brand-new companies fail is because they do not plan enough. What sounds like a good idea, may not fare well in reality. This doesn’t mean that you need to ignore your passion, but it does mean that you need to do some more research and planning. A business plan essentially forces you to define your unique value proposition. You need to know what differentiates you from your competition and you also need to know if there is anything that you can do to try and understand your customer base. If you can do this well, then you may be able to avoid business failure.
Failure to Understand Consumer Behavior
We live in a very connected age. They say that the customer is always right, and this is now more true than ever. Today, consumers expect all brick and mortar companies to accept credit cards, and even Apple Pay. Even if you have a tiny operation, this is still expected of you. If you are not able to deliver this, then you may find that your customers have something bad to say about you. If you want to avoid this, then you need to try and monitor feedback. You also need to encourage and then engage in conversations with your customers. If you can do this, then you will soon find that you can come out on top.
Not Using Social Media
Every social media platform out there, including Instagram, Pinterest and even Tiktok are all great tools for you to be using. They also give you the chance to listen to your customers as well. Push notifications are great as they alert you when your business is being talked about. This will help you to engage with your customers far more than you realize and it will also help you to improve your customer service dramatically. If you are not using social media, then you may find that your business growth comes to an abrupt halt.
Reviews
Yelp is one of the go-to destinations when people want to find out about local businesses. If you go on there yourself, you will soon be able to find out what people are saying about you, and you can also find out if there is a specific problem that they have with your company. Everything is Googled in this day and age, and your reviews will probably be the first thing that your customers notice. If you know that you have a lot of bad reviews about your company, then it is a good idea for you to try and hire Guaranteed Removals so that you can get them wiped.
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