Many business failures result from problems that are beyond the control of the entrepreneur. For example, wired telecommunications companies were once profitable, but are struggling to survive in a world that has many more ways to communicate. However, there are many reasons that are entirely the fault of the owner and can fortunately be avoided.
- #1 Not Finding a Market
The most common reason why businesses fail is that there is not enough demand for the product that they’re offering at the price they’re offering it at. There are also cases when there is a demand for a product, but too much competition to the extent where a start-up is unlikely to acquire enough customer loyalty to needed to earn a meaningful profit. Sometimes, the entrepreneur is very passionate about an idea that is not ultimately profitable. This can lead to a lot of heartbreak when the business owner was really passionate about a particular idea.
- #2 Choosing the Wrong Location
Sometimes, the business does have a product that most consumers would want. But the company does not find the right location to sell that product. There might not be enough customers in that location, or the competition might be too high for businesses to survive.
- #3 Poor Financial Management
Other businesses fail to pay close attention to the numbers. When an entrepreneur first starts a business, there are various roles that the entrepreneur must fill and these roles can become overwhelming, but entrepreneurs sometimes do not have the financing needed to hire a financial manager. It is almost impossible for a company to make smart financial decisions when there is not enough data to understand the financial state that the company is in. Businesses that fail to engage in effective accounting do not realize that they do not have an effective-enough cash cushion to handle financial ups and downs. Some businesses also lack the necessary insurance to secure financial assets. The best way to find business insurance is to visit BusinessInsurance.org.
- #4 Poor Overall Management
Another problem could simply have to do with how the company operates. Some managers are simply not very good at running a company or may hire the wrong staff members. Some companies do not take every step possible to lower their costs, such as finding lower rental agreements and more cost-effective materials. Other businesses pay labor too much. But there are other cases where the manager simply lacks a vision and never comes up with a sensible plan for expanding growth.
- #5 Not Offering Business Etiquette Training
As a business owner don’t make the fatal mistake of failing to offer business etiquette courses to your employees or taking one yourself. The best business plan and marketing strategy plus all the financial resources you need cannot make up for a lack of interpersonal skills.
Hire Lydia to work with your staff to improve customer service and employee relations through the use of those priceless and often over-looked soft skills called manners. Lydia is the “unstuffy” business etiquette expert who helps individuals and organizations add the polish that builds profits. We’re talking about your bottom line here.
Since 1996, countless people have benefited from her wisdom through keynotes, seminars and conference breakout sessions. Her Southern charm and sense of humor have made her a sought-after speaker and consultant.
Based in Savannah, Georgia, Lydia is available for national, regional and local speaking and training engagements. She has suitcase; will travel.