According to Forbes, 8 out of 10 businesses fail. That statistic alone is enough to scare some people from even trying. Why do so many businesses fail? Although there is a myriad of reasons, there are three common deaths to businesses.
The number one reason businesses die is because of lack of money, whether it be no funding or little revenue. There either wasn’t a need or a desire for their product or service, or their marketing efforts weren’t enough. Whatever the reason may be, if you don’t make money, your business will die.
An important part of a successful business is having an adequate and competent team of staff to help with the duties and responsibilities. Without being able to maintain or retain staff, it makes it hard for a business to thrive. You’ll be too busy running around like a chicken with your head cut off trying to juggle every task at once.
Having a product or service isn’t enough. You need to promote and brand not only just the product/service, but your entire company, as well. If your strategy isn’t successful, it can lead to the death of your business. Marketing brings your product/service attention, it creates a need and a value, it entices people. If you can’t attract people to find the worth in your business, they won’t bother.
Unfortunately, the path of owning a business is rocky and sometimes the trail doesn’t smoothen out, and sometimes that trail even leads you right off a cliff. Owning a business comes with bracing yourself for any possible outcome.