The chances of a business succeeding are slimmer than they have ever been before, and this is without taking into consideration the damage which the pandemic has caused. In fact the worrying statistics regarding businesses suggest that just 1 in 2 businesses will survive beyond the first three years. In further disappointing news, of those businesses which do survive, just a further 50% will survive beyond the next two years. More encouragingly, the 50% which remain beyond 5 years have an excellent chance of finding a lifetime of success.and business guru, works with businesses during those perilous first 5 years, and here is why he says, that so many fail.
Simply because you know how to set up a business doesn’t mean that you are able to hire staff successfully and that is one of the biggest issues which so many business owners have. Getting the right talent is critical to the eventual success of the business and both the recruitment and the training which the staff are given are absolutely critical to the company. Getting this wrong can often lead to a great deal of problems further down the line.
There are a number of problems which many companies run into when it comes to growth. Some businesses will push for growth too early, others may not recognize when growth is required and a larger number of businesses simply do this is a way that is ineffective and which alienates their existing customers. Whenever a business tries to grow, it is important that they have a robust plan in order to do it and that they have professionals who are on hand to help them out with this.
Failure to Invest
For success, it is very important that businesses have a clear understanding of how much they should be investing in their business. This comes down to outsourcing and the use of additional services which can greatly help the business on the whole. Whether it is marketing, accounting or HR services, all businesses have to understand the need for additional investment in order to keep pushing for success and a failure to do so will be greatly damaging to the business on the whole.
And finally there are a number of businesses which jump onto trends and do well, yet fail to change the business when that trend dies. Sadly therefore, in just a short space of time, businesses can become irrelevant and that sees them forced to close their doors very quickly after they have opened them. If the business is going to be based on trends, it must ensure that it is constantly seeing to change those trends in order to stay on top of what their customers want.
These are some of the most common reasons why businesses fail. If you are going to launch a new company, it is critical that you focus on where so many go wrong, in order to get it right.