Every year, people like you start their business with lofty goals and stars in their eyes. Yet, every year thousands of businesses fail. In fact, business experts say that one in five businesses will fail within just a few years of launch. The actual numbers are probably quite a lot higher, since many open a small business on the internet and never even get it off the ground.
You don’t want to fail. You want to succeed. And I want you to succeed too.
When you know why entrepreneurs fail, you can properly prepare for success. Here are the top reasons why entrepreneurs fail:
#1 Lack of research – It’s vitally important to make sure there’s a market for your business before you launch. You have to research both demand and supply. Who is providing the same products or service? What problem are you solving for people? Who are your prospects?
Researching this is a continual process – not just something you do at the start of your business. Why? People change. You and your offerings may change. Without proper research into supply and demand, you’re not going to be able to position your business successfully.
If you’re unsure how to research your target market, talk to an expert. Get help. Speak to other entrepreneurs you trust. I’m part of a FREE panel tomorrow to help you answer this, and any question you may have about your business. Register for free live coaching on your burning questions.
#2 They don’t understand their market – This also relates to research but it’s a different kind of research. It’s vital that you know exactly who you’re marketing to. Why? Because you need to position your product or service to meet their needs. If you don’t understand their needs, you may miss out on profits.
#3 They don’t understand cash flow – Cash flow is essential to survival. Actually, poor cash management is perhaps the most common reason for business failure. Entrepreneurs must create a budget. They have to be realistic about how much they expect to earn. Stop with the pie in the sky, “I will make $20,000 on this product if you don’t audience to buy it.”
And entrepreneurs must have a tight rein on their expenses. In order to pay the bills, you need to have cash coming in on a regular basis. Cash flow is essential to survival.
I created my business to be debt-free, meaning I have never used a credit card or taken out a loan to fund my business. Does this mean I didn’t get to buy the all-new blueprint that everyone is raving about? Sometimes. But making and sticking to my budget has made my business much more valuable than the typical business owner who ends up filing for bankruptcy because they didn’t monitor their expenses and cash flow.
(Want to learn how I did it? Then join me for personalized attention LIVE at http://www.VIPwithShannonandFelicia.com)
#4 An inability to market – It’s important to realize that marketing is essential to success. If you don’t have a solid marketing plan, your business will not thrive. In business, the old “if you build it they will come” mentality just doesn’t work. If you don’t like or understand marketing, then you need to learn how – quickly.
Many people say I’m a prolific marketer. I guess I am when I look at others. But I’m not working night and day to get my marketing done. I have a life and I like it! As a matter of fact, I only work about 25 hours a week on my business. That’s all due to the fact I have a 6 month marketing plan that’s updated each and every month.
Take heart and think positively. While one in five businesses fail, the others succeed. Research, plan, and understand your market. Commit to marketing and manage your accounts with solid accounting and cash flow management. You’re destined for success!
And if you want more help, then check out the free tele-clinic on March 24 at 7 PM ET. You’ll get expert feedback on your questions… whether you submit them ahead of time, or ask them live on the call. In just ONE hour you could get the ‘right’ piece of expert advice to go from idea to income. This one-shot opportunity to get customized support for your business is available ONLY on this live teleconference. Visit http://bit.ly/YourQuestionsAnswered to register and get your question in the queue.