The startup life seems glamorous to the uninitiated, but those living it know that it has its risks.
The fact of the matter is that 30% of new businesses fail within the first two years of operations and 50% close shop in the first five years.
And there are some specific reasons why small businesses fail so often; for instance, many entrepreneurs overlook or ignore certain aspects of running a business such as using outdated strategies or failure to conduct in-depth market research.
If you are looking to avoid business failure, go through the following list of mistakes that companies often make and understand how to increase your chances of success.
Table of Contents
1. Using Outdated Strategies To Power Your Business
Online growth strategies such as email marketing, social media, PPC, SEO, etc. arenâ€™t what they used to be five years ago.
For instance, many businesses are guilty of sending non-targeted, impersonal emails, using keywords without context or regard, buying fake online reviews, etc. in an effort to fuel digital growth.
Little do they know that most of these outdated marketing techniques have backfired spectacularly in the modern digital landscape.
There is a need for modern businesses to rethink their approach and explore new grounds for digital marketing solutions that promise fast growth. The latest trends point towards voice search, virtual reality marketing, artificial intelligence and machine intelligence, to name a few.
2. Being Too Focused On The Competition
No one can mimic another brandâ€™s strategies, tactics, and images, and expect the outcome to be successful. In fact, research proves that consumers believe it unacceptable and unfair when a brand tries to copy another.
Instead of worrying about what your competition is doing, create a custom plan to achieve your goals for the startup â€“ in other words, itâ€™s important to carve your path to success in an original and inspiring manner.
3. Ignoring The Traffic Building Agenda
You will find a number of overly-dramatic articles about the â€˜death of SEOâ€™ – but the fact is that it is very much alive and well, and is still the best way to drive quality traffic to your site.
A business canâ€™t grow these days if itâ€™s not paying the due attention to building traffic, be it using social media, SEM, SEO or web design strategies.
Make sure your marketer prioritizes quality over quantity, works on technical on-page SEO and engages in site traffic monitoring to ensure robust business growth.
4. Getting Caught Up In Social Hype
It holds true on personal as well as professional levels â€“ some of us waste too much time on social media.
The latest statistics confirm that there are 3.2 billion global social media users which roughly translates into 42% of the population.
While there is no denying the importance of social media for businesses, itâ€™s important to not get too invested in social platforms â€“ especially if you donâ€™t have a proper strategy in place.
5. Failure To Tract Numbers That Matter
At the end of the day, success in business comes down to the numbers.
Youâ€™ve got sales, marketing, human resources and customer service down, but how do you measure your success? What is your cost per lead? Cost of customer acquisition? Conversion rate?
The devil is in the details and the answers to the questions above can ensure your success in the long run.
Here is an additional tip: page views and the number of followers are just two of the many vanity metrics that you shouldnâ€™t obsess over.
6. Having Insufficient Capital
Having insufficient operational funds can sink a business faster than you can imagine.
Unfortunately, new business owners donâ€™t realize how much cash theyâ€™ll need just to get the business started – or to get it through the first quarter. As a result, they are forced to close down before theyâ€™ve even had a fair chance at success.
So, make sure you have enough funds to cover all costs until sales can start paying the bills at work.
7. Failing To Learn About Your Customers
Often, entrepreneurs and managers are so engrossed in the day-to-day tasks of running a business that they fail to work on the people who are keeping the company afloat – your customers.
After all, research shows that 86% of consumers are ready to pay more for stellar customer experience.
So talk to them, get them on the phone and use chatbots when they visit your website. Use plain language to ask about them and help them understand how your product or service can help them.
8. Failure To Look Professional
Make it easier for your customers to connect with you the very first time they hear about or see your brand – and this includes providing premium quality service.
If your business relies on phones for all incoming calls, get a dedicated line so your personal life doesnâ€™t get affected on your quest for successful entrepreneurship.
Mobile apps like Ninja Number can help you link up to 5 phones to one number, so you can always be sure that whenever it rings, someone is always going to pick it up.
Remember, your image matters a lot; no matter what promises you make or guarantees you offer, if you donâ€™t sound and feel professional to the client, they wonâ€™t give you their money.
Make sure your business avoids the mistakes detailed above and get in touch with Ninja Number to get a business phone number to enhance your image today.
Featured image source: Freepik