Recent figures have revealed that over half of all new businesses will fail within the first 3 years and that of that half, around a further 40% will fail in the following 2 years. What is particularly worrying is that these figures are actually rising year on year. Considering that starting a business has always been a difficult task, such trends are only going to make a difficult job harder.
Striving for success and consciously avoiding failure is a daily struggle which will place you and your business under a great deal of pressure and in truth, there is no way to avoid this, it is the true face of business. With that being said, according to Pietro Triassi Montreal, there are lessons that can be learned from those who have been successful in the past and also, those who have failed.
To help you in your efforts to avoid failure, let’s take a look at some of the factors which have caused businesses to fail in the past.
Finances
Naturally, finances is the key to the success or failure of a business and this will fall into a few separate categories.
1. Lack of funds
Businesses should always ensure that they have a healthy amount of money both as a foundation and going forward to ensure that they can operate to their potential.
2. Mismanagement
Businesses managing finances without the skills to do so or making risky decisions without consulting.
3. Ignorance
Owners becoming blind to their bottom line and not paying sufficient attention to their cash flow either because they are too wrapped up in operations or they have a lack of knowledge.
Focus heavily on the financial side of things and ensure that it is an area looked after by a professional.
Outsourcing
Outsourcing is a vital piece of the puzzle when it comes to running a business but it is important that it is done at the right time and in the right way. It can be tempting to outsource too much of the business but this can result in financial problems, equally, many people do not outsource the right areas at the right times, causing a similar problem.
Ensure that you outsource key parts of your business which give a strong ROI and help you to operate more effectively.
Reputation
Word of mouth has long been an important way of spreading reviews about a business and the modern-day version is the world wide web. Whilst this can prove to be a useful tool when it comes to your business’ success, a negative campaign against you can do intense damage in a matter of days.
Your company and its reputation is crucial to your success and if you follow in the path of many who have gone before and fail to acknowledge this, then you could be in for problems. Reputation is crucial to you success and you should treat it with a high level of importance.
Failure to Market
Marketing simply must feature heavily in your business model, regardless of whether you dedicate a large amount of money to it or not. The reason behind this is that with such competition at the moment, thanks to the creation of so many new businesses, it is vital that your company keeps up with, or at least challenges your competition in the marketing stakes.