Thousands of businesses are started every day, yet only a small percentage of those firms succeed. There are a variety of reasons why these firms fail, but today I’ll focus on the most common causes.
“Success is not final; failure is not fatal: it is the courage to continue that counts.” – Winston Churchill.
Learn these four lessons and apply them to create a profitable business that stands out from the crowd. So, let’s talk about those four reasons.
1. No Market
In a study, it is found that 42% of businesses failed because they don’t have a market. That is to say, they create goods, but no one wants to buy them. This is a typical mistake made by many new entrepreneurs. They don’t consider whether or not their goods will appeal to customers. They just care about developing the product or service so that they can start a business and can write “entrepreneur” in their Instagram bio.
So, when you start your business, ask yourself this question: how can your product be valuable to others, and is it worth their hard-earned money?
Nobody wants to spend money on a product or service that does not meet their needs in any way. So, before you invest all of your money, do some research on the market.
2. Ignore Customers
“There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else.” – Sam Walton
At the end of the day, a customer is the one who will pay for your product. So, instead of focusing on what you think they want, concentrate on what they actually want. 14% of businesses failed because they ignore their customer’s needs.
Nokia is the best example of this; instead of focusing on Android, they worked on Windows phones. Customers, on the other hand, find it difficult to use Windows phones, thus they have all switched to Android phones and Nokia had to face a drastic downfall. Nokia has learned from its mistakes and is now introducing Android phones to the market. So, don’t ignore your clients because if they begin to neglect your product, your company will be shuttered.
3. Team
It’s like looking for a girl to marry when you’re looking for a team or business partner. We need to be careful. no matter how great your business idea is, solely you can do nothing. To turn your idea into a profitable business, you’ll need a team.
But in a study, it is shown that 23 businesses out of 100 get failed because they don’t have the right team.
“Talent wins games, but teamwork and intelligence win championships.” – Michael Jordan
4. Cashless
It is unsurprising that every third business fails due to a lack of funds in the first year of operation. Business isn’t only about thrills. You must think and address problems before they occur. This is something that all successful businessmen do.
When some business owners begin to make money from their firm, they begin to spend all of it, which is not appropriate. You must set aside funds for future investments and business expansion.
So, these are the 4 main reasons why any business gets failed. Hope you will learn some valuable lessons from this post.
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