Hundreds of millions of companies are registered every year in the world, but only a few manage to turn their business into a success stories.
When we come up with an idea for a business at first it seems exciting, we imagine how that business will bring us a lot of money and we will be able to afford the things we want, but the reality is completely different and a very large number of business owners give up in the first year. Even if we were aware of the difficulties that follow in raising a business, we still haven’t felt them yet, and only when difficulties really come, we can understand how difficult it is.
However, even for all this, there are normally solutions that we will reach only if we do not give up and are persistent. Persistence is indeed the key, but not persistence without thinking of ways to take our business to a higher level, only persistence with rational thinking will lead us to success.
In the following, we will explain the 3 main reasons why businesses fail in the 21st century.
Business and SWOT Analysis
Before you start a business, you should analyze to know if you should open that business at all and if you do, to know what you should do in the next year or two. Naturally, these things can change, but the foundations and the concept of which direction you will go will always remain.
– Examining the competition and market saturation is the first thing you should check when opening a new business. This depends on the location and the presence of that type of business in the area, as how many such businesses there are in that area, if there are too many, it might be better to find a new location where that business is less represented. You may also have competition, but you need to examine all the strengths and weaknesses of your competition, then further exploit their weaknesses and stand out from them. For example, prices, products, tone of voice, extra benefits, serviceability, customer care, etc.
– The need for such a business in the market is also an important part to answer. Whether or not what you offer is needed in that area, there may have been similar businesses to yours in the past that closed. If maybe they didn’t do well, then you will examine where they went wrong and be better than them, but maybe there is no real need for your business in that area. To get the right answer, it will be necessary to do good research and even a market survey. Through the survey, you might find out what they want in that area, so you will open that type of business.
– Finances are also an important part of opening a new business, so we should be ready financially, to examine how much finance we need if we don’t sell a single product or service in the first few months, if we don’t have a lot of finance we can ask at the beginning help from people who want to invest in new ideas as a replacement for part of the company, or to open something very small where in the beginning if we provide services we will find a bigger company where we will work for them and provide services under their name, or if our business is a product based we will go and directly offer our products to the places where they are needed until we acquire more capital and invest it in our business to grow.
– and the SWOT analysis with which we will examine: our strengths, our weaknesses, our opportunities, and our threats. Believe that in this section you will find many important answers.
Not enough knowledge of how to run a business
Many people think they know how to run a business, and as we said earlier, everything seems easy to us, but you need willingness and rational thinking in running a business.
DON’T BE BOSSES – BE REAL LEADERS
This means that you need to understand the essence of running a company and leadership. Being a leader means that you are ready to make the way, that you are the first battle line, that you hire people who will tell you what to do, not people that you will want to order, you will put the ego aside, because it will lead you to many wrong decisions regarding employees, managing finances, elevating the business to a higher level.
Create a pleasant atmosphere where everyone would feel valued and want to work, where everyone would bring out their potential and thus have a stake in the company and its achievements. If you don’t want to share “the cake” your business will probably fail or remain at the lowest level. The employees are the ones who raise your business, they sell the product or service, and if necessary they also create it, if they feel valued and eat with you from “the cake”, there are great chances that your business will grow.
Companies are not digitized
We live in the 21st century where everything happens online. People search online for everything they need. And if your business is not there, you are out of the game. You would probably have a few clients in the area who would barely pay your rent.
Did you know that over 90% of people today learn about companies online, and companies that don’t have an online presence lose up to 80% of their potential customers?
Most of them are aware of this, but they only open one or two social networks, where they are usually followed by people they know, and they are not our target group, that is, they are not the people who will buy from us, we need to have posts that will grab attention to those who are our target group and who are most likely to buy from us.
However, the most important thing in digitization is having a quality website.
A website gives you credibility, people trust you more, you can sell directly through it, it’s linked to all social media and you can bring people to your website through social media, most people search on google for what they need, and if you don’t have a website they will most likely go to your competition, and most importantly the WEBSITE is your best employee, selling for you 24/7.
Therefore, on the other hand, your website must be made by real professionals who know their job.
The website should be:
-responsive for mobile and tablet,
-be SEO friendly,
–with good content
-designed with one goal to keep the potential customer entering the website,
-be of adequate speed,
-created to make the visitor buy from you or get in touch with you,
-with a blog where you will write on topics related to your business, which will help you reach more customers after a certain period and increase your rating.
So when it comes to digitalization, especially for a website, don’t save money, because after a certain period if the website is created by professionals, the same website will return you many times more.