Running a business is challenging; some fail, some win. Whether it is a startup or an existing business, it’s never too early to start thinking of growth. According to Business Beginners, 1 in 5 start-ups fails every year in the UK. The big question is, why do businesses fail? As an experienced entrepreneur, I have seen a handful of entrepreneurs who fail. These businesses fail because they ignore certain pitfalls, which lead to a major crisis.
Here are four Pitfalls that can kill your business:
#1 Not knowing your competitors: Competitors are everywhere, some are direct, and others are indirect. It is important to know who you are up against in the industry before launching your business. If you have started your business without researching your competitors, there is still a way out. However, not having adequate knowledge of your competitors is a trap.
Solution: Do industry analysis and leverage on industry opportunities. Also, pay attention to what your competitors are doing; you can join their email list or buy their products to study what gaps they may be missing.
#2 Lack of a strong value propositions: It is distracting to want to sell to everyone or anyone. One of the elements that helps every business survive the fierce marketplace is its unique selling point. What is so special about your product? Why should anyone boycott another product for yours? Selling products without any form of uniqueness is a slow killer of businesses. It limits your growth and prevents you from attracting the right customers.
Solution: Analyze the features of your product and discover what makes each feature different from others in the marketplace. Market research such as asking for feedback from your customers can be helpful.
#3 Poor Customer Insight: As an entrepreneur, you need to know your target market. Are you selling to sportspersons or stay home moms? How often do they buy your products? Poor customer insight limits you from connecting your business message with your customer’s pain.
Solution: Engage your existing customers. Create a survey and ask for their feedback. Also, look for various ways to gather data about your target demographic.
#4 Poor Financial Management: Money is crucial when running a business. Each stage requires money as much it requires effort. You need enough capital to get the business started and stay afloat until it starts making money. More so, money is required when you are ready to expand your business. Poor financing is a business killer, regardless of the stage you have gotten to.
Solution: Whether you took a business loan or got a grant, you must review your financial statements every month, especially your inflow. This enables you to make an adequate financial plan.
Are you facing any of these challenges? Do you need help growing a business you love? If yes, book a counseling session with me, and let’s bring your business up to speed.
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