When we try to figure out the reasons that have caused a company to grow or decline, become a success or a failure, we often think it’s a simple cut and dry explanation. But the difference between failing businesses or successful ones is actually quite complex.
Independent of the economic crisis of 2020, many start businesses with big dreams, hopes and goals. Unfortunately, it doesn’t always work out that way. It takes an awful lot more than just dreaming of owning a successful business to actually make it one.
Why small businesses fail
If we look at a successful company, like Google, and ask business management experts to tell us what they think of the CEO, most will say that he is a flexible, methodical, or determined man. However, if things have gotten worse in a company the following year (something that happens quite frequently, as there are economic cycles that seem to work quite a bit at the expense of what their workers and CEOs do), then managers will admit that we are facing a confused, rigid and authoritarian CEO.
Any good business will be run by also looking at its staff and what they need and want. A successful business means a successful team, after all. Whether or not it is diversifying, or upgrading systems, or perhaps looking at trading, such as MetaTrader 4, it is important to look at all areas.
One of the reasons why small businesses fail is that they neglect to implement the above procedures.
Failing businesses versus successful businesses
It’s important to keep in mind that aside from economic crashes, the one crucial thing to have in order to avoid a failing business is a powerful and effective leadership/management. How many failing businesses do you know of that failed because the owner/team leader wasn’t passionate about the business and the team and didn’t give it their all?
Yes it’s very important to have a good business module or product that the consumer is looking for but without a solid working team and results driven management/team leaders, your business is set up for failure.
Reasons why businesses fail
We already know that leadership and a strong team will make or break a business but what are some other reasons why businesses fail? Unfortunately, sometimes if the business isn’t growing as much as the owner would like, they will be less passionate about their business, not give it 100% of their effort anymore and in turn, will not be a good leader for their team.
It’s hard to stay positive, hopeful and/or optimistic in your business when you just don’t see any real growth. You start questioning why you’re even doing this in the first place and if you should continue. Once you get to that place it’s almost impossible to pick yourself up and push forward.
Referrals-word of mouth-glowing testimonials. Those three things are key in growing a business. Remember bad news spreads faster than good news. That’s true even for businesses. One negative comment about your business will get to 100 people before a good one does. Don’t forget that.
When you maintain good work ethics, open and honest communications with your clients/customers and are 100% passionate about your business and what you do, then you should be on track to grow and maintain a successful business BUT if you don’t have any of that or are missing even one of those things, you’re preparing yourself for a failed business.
The key to a successful business
Marketing is huge for business.
From online advertising to social media campaigns, they all greatly assist. In the end, however, these activities can only be the beginning of the marketing and communication tasks.
The goal has to be to cross the borders of the internet and reach the offline media to increase coverage. Those of us who spend a lot of time online can quickly get the false belief that we are two clicks away from our entire target audience. We’re not. You first have to find out where your target audience is hanging out, otherwise you are wasting a lot of time.
Start-ups even already invest in television commercials because it is a channel that allows them to reach potential customers in a very powerful way.
A great design is always key!
Think about those pages, applications, brands, or whatever it is that you see often. How many of them have a poor design? Probably very few or none.
The design has a direct impact on expectations about the quality of a company’s service or product. If you don’t make a good impression at first glance, it is unlikely that you will be able to close a sale and land a customer.
Usability has a direct impact on conversion results. It has to be 100% clear where I have to click to hire you or that the page transmits the main points why I should buy here and not elsewhere. You have about 3-5 seconds to capture their attention with your website. Remember we have short attention spans.
Show me what you have, clearly, tell me what to do. That’s how we operate as humans. Clear direction!
Otherwise, sales are lost every day.
The desire to want to grow and succeed is also vital.
Never settle for the status quo. When things are going well, they can even be better. It is what makes the difference between those companies that have understood that being the best today does not necessarily mean having to be the best one year from now.
The competition does not sleep and will not rest until they have taken your position.
You have to develop more hunger than the rest to maintain a leading position or want to reach the top that is currently occupied by others. Continuous improvement has to be part of the mentality and philosophy of the company. They are not necessarily always big changes but in most cases work constantly, consistently and change small things.
In sum, these generate important improvements over time.
Loss of focus leads to failing businesses
Whether you are just starting out or have been in business for a couple of years, if you want your business to succeed the points listed above should steer you in the right track. Always remember why you started your business in the first place. Were you following your heart or a big fat bank account?
Losing focus will surely cause failing businesses unless you take time to regroup, clear the fog and help refocus on your business again.
The reason why you started your business will have a huge impact on how successful your business can or can not be.
Here’s to your success!
ox iva xo