No one sets up a small business with the intention of failing, but the fact is that the vast majority of small businesses sink without a trace in the first year. If you do not want yours to be one of them, it is worth having some idea of the kinds of issues that cause new businesses to fail.
With that in mind, let’s take a look at some of the most common causes of a new business sinking without a trace:
Search engine optimisation is important because it enables potential customers to easily find your business website when they are searching for the kinds of products and services you sell.
If your SEO is poor, or worse not implemented at all, your business will sink without a trace on Google, which means it will most likely sink without a trace in real life too. Hiring a good SEO agency, then, is a sensible use of your budget if you are serious about being a success. Of course, if money is tight, you can always learn the basics of SEO and implement them yourself, too.
Many new business owners think they know exactly who they need to target to sell their goods and services. They think they have a clear idea of the kind of person who would use whatever it is they are selling. They are often very wrong.
If you want to be sure that your marketing is targeting the right people, you cannot simply think you know best – you need to carry out good marketing research so that you can be absolutely sure that your client persona is as accurate as it is possible to be.
A lot of new business owners are not great at managing cash flow, which means they end up running out of money really quickly, leaving them unable to buy stock, pay for marketing and ultimately keep the company up and running.
That is why it is often a good idea to have a very detailed business plan, regular monitoring of finances, and access to a good accountant or money manager who can help to keep you in the right track and keep you in business.
If you want to stay in business in the first year, then you need to attract as many customers to your company as possible – it really is that simple. Of course, this is often much easier said than done. It s not always easy to find the resources to market effectively when you are just starting out but social media is a good place to start. Build a strong presence, post regularly, have fun with it, and you will probably find that you are able to build up a significant following that you will then need to turn into customers by showcasing your products and services in the best possible light you can.
Avoid these issues and give your new business the best chance of success!