According to Dun and Bradstreet* small business failures of some sort are up 48%. and Bloomberg has stated that 8 out of 10 businesses fail over time.
Reason #1: Not in touch with what customers want and lack of communication.
Are you asking your customers what else you can be doing for them or how happy they are? Knowing the strategies is half the battle.
Reason #2: No real differentiation in the market.
What is your unique core differentiator? How are you different from everyone else in your industry? We must be different in today’s environment.
Reason #3: Failure to communicate value propositions in a clear, concise and compelling fashion.
Are you speaking with your clients via social media, letters, websites, visiting them etc? Many businesses are not communicating at all.
Reason #4: Leadership breakdown at the top.
What leadership style do you have? How dysfunctional is your team? Does your team know where the business is going and why? These are critical.
Reason #5: Inability to nail a profitable business model with proven revenue streams.
What changes do you need to make to your business model in this changing environment? Are you tracking your business and comparing it back to budgets? What impact do 1% changes have on your businesses profit and cash flow?
If you can’t answer all of these questions, or you don’t like the answer you come up with, it’s time to do something about it before you end up in the 8 out of 10.