Why Do Businesses Fail?
Alejandro, one of our Entrepreneur in Residence is going to give us some tips about why some businesses fail. Pay close attention to the most common…
Lack of vision and strategy.
A company has to be clear about its strategy, financial plan, the direction your headed, your market, niche and growth plan. But often these answers are not clearly defined.
Who are your customers? Identify your customers.
– Who are or who will be your customers?
– What is your target audience?
– Does the potential audience need the product or service being offered by the company?
– What similar products or services are currently being used by those customers?
It is key to establish what is your added value for customers, why they will buy from you and not your competitors.
Who are the competitors?
As we have defined the product, the market you fall in, now you must identify your competition.
Many companies don’t know their competition which is one of the biggest mistakes you can make.
Competitors is a wonderful source of information. It can help you define your strategy, to set prices, to differentiate and introduce new products and services.
If you do not know your competitors can not beat them.
Not differentiate the value added
What added value does the company bring to its market?
That distinction will be a critical factor to your client. Not all benefits are relevant to your client.
However, differentiation is not sufficient. Companies must attract, interest, mobilize. Discover their beliefs, interpret their behavior, predict their needs. Then research the market.
How do your customers view you?
Few companies know what their customers think of their products or services.
This may help you improve in an aspect where a competing company fails.
Know what your distributors are thinking and feeling.
Resources & Treasury
Dying due to the lack of resources. Is one factor companies must take into account.
What do you do with the money? Is it reinvested in the company?
What good is having a great idea if the company does not have the resources to make it happen?
The investment plan has to be in conjunction with the company’s strategic plan.
Many companies do not know what to do with the money they already have.
Lack of commitment
The degree of commitment and ownership of the company is the first impression consumers perceive. The growth of the company depends on the commitment of the team to grow the project.
Do you seek continuous improvement? Innovation is essential.
Must always be present in our organization, otherwise the business innovation might enter stagnation. Innovate in ways that can improve processes and products continuously is essential.
Stay tuned for more tips! Ensuring your business becomes a true success!
Alejandro Delgado Alonso