Having a business of their own is a dream cherished by many but if the right amount of effort is not put into it, their dream soon become a nightmare. According to Small Business Administration, nearly 66 percent of small businesses hardly survive their first two years. From a broader spectrum, every dying company sends out certain signals before the ultimate collapse. It depends upon the entrepreneurs’ observant eye to foresee the factors that will ruin their business sooner or later. By identifying the factors quickly that can kill your company will help you secure your business from further damage.Although the truth is that the possible cause of your business’s success today can be a factor to its failure in future.
Here are the 6 practical flaws to look out for:
1) Flawed Business Plan:
A flawed business plan or a flawed business model will definitely cost you a fortune. A business model usually is how a venture generates, provides and captures value. Your business will be in great trouble if any of these areas were affected by any means. On the other hand, a business plan is a strategic document based on your vision that helps establish goals and identify the best actions to implement them. If the initial surface of the business is not concrete, how can you expect the business to grow and prosper? So to be successful, avoid a business plan that is not suitable for both the customers and the company.
2) Bad Marketing Strategy:
Marketing strategy is the backbone of your business. It is a source for generating awareness about the products in the audience. A marketing plan should be devised in a way that complements the goals and resources of the organizations. But, due to variety of causes, entrepreneur tends to select outdated strategies which prove disastrous for their investment. Many companies ignore online marketing even though the majority of the audience has access to internet.
3) Undesirable Location:
Location is everything. One of the reasons of poor business performance can be a bad and undesirable business location. It is the small physical space where your business exists and has a direct effect on your promotion, advertising and distribution. When selecting a site, one must keep in mind the accessibility factor.
4) Poor Customer Service:
Poor customer service can ruin your company in several ways. Many companies do not put much attention in the customer services which gradually leads to loss of customers. The customers due to their bad experience will not come back to you and also might spread a bad word against your company to others. Nevertheless when a company excels customer service, it advances in long-term customer loyalty, repeat business, and also promotes referrals.
5) Too Much Funding:
Funding is necessary for a company to carry out daily operations. But too much it is dangerous for you business. Greater valuation might sound a good idea on a bottom, yet have greater risks. By greater funding, the company may not reach out to higher expectations. It is advisable for a startup company to have small amount of investments and achievable targets.
6) Bad Website Design:
Your business is a raw meat. You have to cook it, season it to make it look scrumptious. The cooking part is actually your website which you have to decide whether to cook it well or leave it raw. If your venture looked miserable online, it will not attract the audience, eventually leaving a bad mark on your product.
It is a common occurrence that some companies in the market which usually have same product as you have are thriving while you’re barely surviving. Although every business has its own issues but if yours flounders that it’s must be undesirably affected by one or more of the factors above.