Business failure is a harsh reality. 80 percent of business start-ups make it past the first-year mark, and then the rate begins to drop each year after. Ten years out… only 30 percent, meaning seven out of ten businesses fail within the ten-year mark.
So let’s look at the steps you need to take to avoid failure and give your business longevity.
The heart of any business is value. If you’re looking to get rich quick, you’ll find yourself at a dead end. Instead, focus on the real value proposition. If you’re not adding as much (if not more) value as your competition, you need to rethink your approach. Value creates buzz, plain and simple.
If you can’t connect with your target audience, your business will fail. Know who they are, what they need, and what they really want. Ask yourself, how will your product or service help solve their problems? Then pin point your target audience.
Focus on being authentic, transparent and find ways that you can give rather than take from your customers. Businesses that lack authenticity and transparency will lose the trust of customers and they will fail.
Smaller businesses generally can’t compete with larger companies in their market. It takes a keen business sense and true guts to pivot and stay afloat with the ‘big guys’.
It’s easy to spend money if you have it, but having a sense of control of the business’s expenses is imperative. When the expenses get out of control or are being used for personal expenses, it’s almost impossible for the business to survive.
With no real experience in the business world, most new entrepreneurs struggle with the demands placed on them. When problems come up, navigating through them can be a difficult task. Build up your board of trusted mentors and leaders to guide you through those murky waters.
Build your ‘Tribe’
Your employee tribe is a crucial factor if you want long-term success. Businesses often fail because they forget about their employees. Even the best employees jump ship to go somewhere they will be more appreciated. Always keep your staff in mind.
At the end of the day, it doesn’t matter how many times you fail, what matters is that you didn’t fail because you didn’t give up!