3 Reasons Businesses Fail

3 Reasons Businesses Fail

3 Main Reasons for Failure

First let’s get one thing out of the way. Starting a business is hard work. There are no shortcuts.  Businesses fail for three main reasons.  You have to be willing to put in long hours and tons of research if you want to make it work.

Depending on what you believe, either one out of every two businesses will fail in the first 5 years, or, according to some statistics up to 80% of businesses fail in the first two years. Either way, these are staggering numbers and they’re bound to put some people off. My first business failed after a few years, so I know how this works.

If you’re still reading this post after the disheartening news above, you’re not easily discouraged and that’s good. If you’re going to build a successful new business, you have to be willing to face adversity. Here are three main reasons a business can fail in the first few years.

#1         Online Presence

Any business that operates today should have an online presence. It doesn’t matter whether you’re operating a lawn care business or your operating a car wash. You have to have a strong web identity if you want your business to succeed.

The truth is, that when we’re looking for a product or service the first thing we do is open up our smartphone and start a search. The days of searching for a business in a paper phonebook are long gone. If a potential customer can’t find you online, your business will eventually fail.

#2         Lack of Customer Input

It’s surprising how many new business owners fail to do one simple thing. They don’t actively seek out the feedback of their customers. They’re so preoccupied launching their new venture based on what they think is a great idea they ignore the obvious. You need to understand what customers think about your product or service and you need to know if they think your prices are too high.

#3         Unwillingness to Adapt

Above all else as a new business owner, you have to be willing to adapt. You can’t be rigid in your structure or your business will fail. In the first few years of a new business, it’s important to soak up all of the best information you can and learn how to incorporate it in your own venture.

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