3 Reasons Why Your Small Business Is Failing

Small businesses face an uphill battle in today’s economy, and it’s only getting steeper. 

For every story of small business success there are ten more tales of failure. Any business owner who sets out on their own understands that failure is a risk, but for many the possibility of failure feels like the only certainty. 

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Statistics suggest that 49% of new businesses fail within their first three years. What could account for such stunning results? 

There are a number of factors that can lead to failure, but with some foresight and planning most small businesses can avoid those pitfalls and thrive. 

1. A Lack of Marketing

Marketing is the lifeblood of any business. 

Your product or service may be amazing, but if no one knows about it, it’s as good as non-existent. If your marketing efforts aren’t paying off, it’s a sure sign that something is wrong. 

While there are many factors that could be to blame, the main reason this occurs is a lack of marketing. The best products and services will always be trumped by those that are well marketed. 

When you’re just starting out, it’s tempting to put all your effort into creating your product or service, but it’s vital that you also devote time to marketing. It’s important to get your name out there, build your brand, and create demand for your products or services.

2. You’re not leveraging technology

Almost every company you come into contact with uses technology in some way or another. If your company is still functioning like it did in the 90’s, you’re not only behind the times, but you’re also going to have a much harder time staying afloat. 

Whether you’re a graphic designer who needs to update their website, have ecommerce that needs to be updated, or have accounting systems that need an upgrade, technology is essential. It’s also an area where you can often save money. 

There are many open-source technologies and software that you can use to get your business off the ground without costing an arm and a leg.

3. You lack organization

Read this outload: project management. 

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Read it again if you’re perplexed. Anyone in a position of leadership in a business will testify the brilliance of staying organized by brushing up on some project management skills. 

Having a clear goal in mind will help guide your business, but you also need a timeline, budget, culture, and a whole list of things to ensure your business is a success. 

Many of the tools in project management help:

  • Create effective teams and processes
  • Hold individuals accountable for their work
  • Business stakeholders get a clear picture of your goals

These tools, such as distance matrix, reduce the amount of time and resources you spend on a specific task/project. 

It doesn’t matter if you use ClickUp instead of Monday.com, if you prefer timesheets than creating seperate sheets. All that matters is that you understand the power these websites and tools hold. How and to the extent you use them will be up to you.

The Key

Failure is part of the process of creating a successful business. No one succeeds without making a few mistakes. 

The key is to learn from those mistakes and make sure that they don’t end up doing irreparable harm to your business. If you’re experiencing any of these issues, don’t despair. 

There is always a way to correct the course and get your business back on track.