Everyone is starting a business, but only a few people are successful or achieving the goals they set. Why is that?
There are six reasons why your business failed.
1. Overconfidence in one’s abilities
A lot of people start a business, maybe they have deep experience in a certain industry, maybe they have some unique skills, and they have had success in some areas before.
So when they start a new business, they design their business plan in the same way thinking about their past success.
They follow the same marketing skills. They reach the same customer base. They hire the same outside agencies to help them expand the market.
But the results are often not what they think.
Why is that?
Because the market is changing at a rapid pace.
For example, the youth population you were familiar with before may now enter middle-aged. As a result, your marketing terminology, your spokespersons, your social media marketing skills are all out of date.
Therefore, over-confidence in your experience and ability will be a huge stumbling block for you.
2. No correct goals
It is not only a goal. It should be a correct goal.
Many people started a business, perhaps because they read a report on the Internet, read an article, or envied a neighbor’s luxury car for a long time, or heard about an idea over a short lunch.
So they started a business!
They make the money figures they saw and heard their goals. They write numbers in their diaries, on the walls of their homes, in their business start-up proposals, and then talk about them everywhere.
However, these figures are not the right goal.
It’s possible that the numbers you hear are all fake. Believe me, a lot of people exaggerate these numbers when they brag about their success.
What’s more, the numbers of past successes do not mean that they are available at present.
Selling on eBay a few years ago might have been a good business. It’s a good idea even to sell things on Esty before.
But, right now? Not quite.
At least not for some categories.
So what you need to do is correctly estimate the current market, how much time you can spend, how much time you can put in and experience, and estimate a goal you want to achieve.
Show the goal in numbers.
3. No basic plan
You don’t have to write a full PPT report like a professional consulting firm, but you need to have a basic plan.
What does a basic plan contain?
In addition to the goals we said above, there are at least a few things to include:
- Target customer base, who are they, where they are, whether they are men or women, what are their ages, how much can they spend?
- What products and services do you have to meet the needs of these users? Do you want to divide your products and services more carefully?
- Do you have to charge for your products and services? How much do you charge?
- Do you need to reach these users in stages? How and when to reach them?
- Do you have the resources to complete your plan? Do you need a loan? Is there anyone who can offer free help?
- What are the risks and challenges you may face in advancing your plan? How to deal with it?
Think about your plan and then execute them.
4. Not adequately exploiting your resources
Networking, for instance.
Although more and more entreprenures can start the businesses by themselves, that doesn’t mean you’re as isolated as Robinson.
Even Robinson later looked for Friday and used Friday to broaden his vision for food.
Your products and services may not be the first in the market, are there any predecessor can consult?
Can the connections of your former clients work?
Are suppliers, channel providers, and external agencies accessible? Is there anyone who can introduce you to them?
You may worry that your business may be premature, and it would be a shame if too many people know about it at the beginning.
But you don’t need to spend all your time with all the people at once.
Make a list. List all the people you can think of, and then work with them in stages.
At least, have you tried to get your family’s support? So you don’t have much distraction when you work from home? Even a glass of freshly squeezed juice in the morning provided by your spouse is a good idea.
Have you ever kept revising your business proposals but don’t dare to step into the market?
In the Internet companies, we often do all kinds of tests, even before the perfect plans come out.
For example, we put a keyword in a campaign first, if the effect is not good, we put another keyword in, or, choose another region to launch.
By doing this, we finalize the perfect strategy and avoid missing the market opportunities.
You don’t need so many high-tech tools, but you can imitate their principles, act quickly and keep trying.
Each strategic action contains many elements. Split each item, change different assumptions, and test them quickly.
Unless you tell me that your venture is to invest in a large factory.
But you can also make small attempts, such as the price of land, product pricing, the construction of specific areas for another supplier to complete?
There will always be areas where you can refine and keep trying.
6. No persistence
We need at least 21 days to form a habit, and we need more time to build a good business.
Success cannot be achieved overnight.
Much of what you see seems to be a short-term success, but those who succeed have accumulated and worked hard at other times.
So why don’t you stick to it anymore?
Have you tried all possible sales channels?
Did you personally visit all the typical customers you might be able to visit?
Have you ever talked to every employee you trusted and asked them if they had any good ideas to help you out?
Have you personally studied every competitor, analyzed every ad word they had, touched each kind of their packagings, personally visited their sales outlets, and tried out their products yourself?
Have you studied your product analysis word for word and analyzed your customer feedback word for word?
Have you ever had at least 100 sleepless nights, just for a product launch?
If not, please don’t give up your efforts and stick to it.
I wish you all the best in your business.
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Hi, I am Tracy, a Strategist in a leading Internet company, a Consultant, and also a Serial Entrepreneur. I have studied and worked in both the U.S. and Asia. I have 3 successful side jobs, writing novels, running an online store, and being a video blogger. I have provided coaches on planning and time management for over 100 people. I never give up my hobbies (piano, painting, and traveling, etc) and curiosity to explore life. I would like to share what I have learned with you.