It’s not the news you want to hear, we understand, but the fact is that a large number of small businesses end up collapsing. While that may not make you feel encouraged, there is an important lesson to be learned here that can actually end up saving you in the long run.
The reasons so many small businesses fail? We’re going to list that for you in the section below.
The Top 9 New Business Challenges:
- A confusion between profits and cash, and delaying tracking cash until it’s a critical problem — small business start-ups are prone to simply running out of cash
- An inability to build a profitable business model with an understanding of revenue, expense drivers, and product margin
- Failure to create and communicate concisely value propositions in a clear and compelling way
- No real differentiation in the market, which makes price the only competitive advantage
- Emotional pricing instead of strategic pricing; reacting to gut feel and emotion rather than data
- Not communicating with customers to understand their needs, leading to a lack of understanding of the market
- Lack of strategic business planning
- Rapid expansion leading to overspending and running out of cash
- A lack of systems and processes for operations, as well as sales and marketing (both are important!)
You may have heard that if a small business survives the first five years, they are in the clear. The reality is that if the issues highlighted above are not addressed, it doesn’t get any easier after five years. Growth brings opportunity, but also a new set of problems to tackle.
So, how do you avoid the struggle? That’s where we come in. The David Pankiewich team is here to help you on your journey to a thriving business that gives you the life balance you need. Begin your business transformation today and schedule your free discovery call now.