No one has ever thought about starting a business expecting it to fail. Anyone who ventures into a new business always wants it to succeed. Unfortunately, in the business world, eight out of ten small businesses succumb to insolvency every year. We all know entrepreneurs are bold, brave and determined yet despite these qualities, it still doesn’t seem to be enough. So why does a business fail?
We’ve discovered three reasons why a business doesn’t make it.
#1 Reason: You Don’t Market Online
While traditional marketing may have worked for some, now that we are in the digital age it has been deemed obsolete. Traditional marketing is no longer as effective as it used to be compared to digital marketing. If you are not marketing your business online then you are missing out on a lot of opportunities. Based on studies, 80% of potential customers are using the Internet to purchase goods and services. Furthermore, 81% of potential customers are doing their research online about a product or service before they make a purchase. Common sense will tell you that if you don’t establish a strong online presence, those customers will go straight to the website of your competitor.
To increase your visibility online and thereby increase your chances of attracting customers, you need to engage in digital marketing. Cross selling, SEO, social media marketing, web development – all these are considered digital marketing tools and you need it if you want your business to thrive.
#2 Reason: You Don’t Listen To Your Customers
Customer feedback is very important because it’s one way of gauging how your business is going. Provide a platform where your customers can give feedback about your business practices, your pricing, your product and your customer service etc. Providing them with a chat feature on your website is also very helpful. That way, you can address the damage (if there is any) as fast as you can. This will not only impress your current customers but it will impress your potential customers as well (those who are looking online to learn more about you).
#3 Reason: You Don’t Adapt To Change
The business industry is unpredictable; you never know what’s going to happen next and just like in life, in business, change is constant. If your marketing strategy today worked, it doesn’t mean it could still work in the next five years. Research your industry, know your market, stay up-to-date with the latest marketing trends and utilise all these into your marketing plan. Being left behind is the worst thing that could happen to your business.
So there you have it, 3 reasons why a business fails. Although there are no guarantees, at least you’ve done your part as an entrepreneur. Don’t just sit there if things are going downhill, do something about it – engage in digital marketing, listen to your customers and adapt to change.
If you are currently looking for a business opportunity we invite you to check out HydroKleen.
Franchising is also a great investment because the majority of the marketing plan has already been taken care of by your franchisor. All you need to do is to focus on your business and do whatever else you can with your free time.
HydroKleen is an air conditioning cleaning company based in Australia. Our franchise partners are growing by the minute and are sprouting like mushrooms all over the globe. We started franchising in July 2010 and since then we’ve introduced HydroKleen to over 19 countries and branded ourselves into over 40 countries all over the world in just a short span of time.