Starting a new business can be exciting but after a short period, a lot of businesses can’t cope anymore and call it QUIT. This is common among small businesses and there are a lot of reasons for failing
1. Poor planning
Failing to plan might be the shortest route to failure. Many small business owners don’t have a business plan. A business plan is the road-map of any business. It can also be described as the blueprint of a business. It can be a 4-page plan [for simple businesses] or a 34+ page plan [for complex businesses]. A well-documented business plan contains the [short-term and long-term] goals and vision of the business, audience and location, investors and partners, etc. It also predicts the opportunities and challenges that may arise and how you are going to handle them. How can a business go far without this? Virtually impossible!
Just because you have a passion for something doesn’t mean you should convert it into a business. You need experience. A lot of business owners skip this part as they deem it NOT necessary. Few of them get lucky while the majority of them pay the ultimate price. If you don’t get the opportunity to work in that line of business, then get a mentor. Being a member of a successful mentoring system works; it is a great way to learn from their mistakes and gather the experience you need. Mentors are stacked with a wealth of experience that will carry you through any issue without stress.
3. Entrepreneurial excitement
The initial excitement of being a CEO often blindfolds the eyes of many business owners not to see true opportunities and/or challenges. Starting a business isn’t a bed of roses; a lot of business owners fail to put ideas into practice. If the business requires that you learn new skills against the business plan, learn, and gain mastery. It will help you thrive.
4. Poor inventory management
This concerns those who sell physical products. Poor inventory management will make you lose money and eventually, scrap the business. To avoid this, look for a professional inventory manager to worry about managing inventories.
5. Ineffective marketing and sales techniques
Marketing and sales contribute a great deal to the success of any business. Many CEO’s tend to handle the marketing aspect of their business themselves. While learning the basics is ideal for any entrepreneur, the task should be assigned to the marketing and sales departments respectively. Ineffective marketing and sales techniques have sent many businesses packing. How can you generate leads and convert them into sales? It takes the expertise of a professional.
6. Poor customer service
Lastly, on this content, poor customer service has shut down a lot of small business until date. Customer service is direct communication between a customer and a [representative of the] brand, catering to the needs of the clients throughout the sales cycle starting from when they indicate the slightest interest in your business and it does not end after they make a purchase. Yes, every beginning has an ending but when it comes to customer service, it is an unending process. The most successful companies are those that provide impeccable customer service experience for their customers, e.g. Amazon. As a business, you should invest in quality customer service representatives that are willing to adjust easily to the client’s personality making the experience seamless for all parties involved.
Building a sustainable customer base through “live chat” allows any business to flourish. Live chat is now being adopted by small, medium, and large-sized businesses as an effective customer service toolkit. Customer services companies like Lead Revenue makes it easy to implement. The end result would be a wonderful, exciting, and flawless customer service experience for your customers and visitors.