An incredible 80% of new companies fail within the first 18 months of becoming a business. While this is a really sad statistic, what can we learn from the failure of other businesses? Well, at the top level, businesses fail because they run out of money. However, if businesses are running their businesses well, then they don’t just run out of money. So the issue is deeper than that.
Take Everything into Account
Failing to figure out how much you’ll be spending – and overestimating it slightly – is one of the reasons businesses fail. If you want to be successful, start off small and analyse everything you spend. That means reducing your overheads and looking at everything from the amount of money you spend on heating your office to how much you invest in your products. There are lots of ways to reduce your outgoings, such as investing in Rocburn window openers to make sure that heat isn’t escaping to making sure you’re not spending too much on rent.
Talk to Customers
Some businesses have an idea, then hoard it away, work on it until they decide it’s complete and reveal it to the world, and find that no one cares, let alone want to buy it. That’s why it’s key to talk to your customers, figure out exactly what it is they need, before you spend loads of money and time on something. However you go about it, make sure that you get lots of feedback continuously as you do business. This is the only way that you can make a success. Find Your USP You might think that USPs or Unique Selling Points aren’t real, that they are unattainable – there are so many companies out there offering similar products that it’s impossible to be different. However, this is where you are wrong. Standing out from the crowd requires work, but it needs to be done, otherwise you’ll be competing for scraps along with all the other companies forever.
The next step is to communicate these USPs to your customers effectively. You might have found them, but if no one knows about them, then you might as well not have bothered. You need to be clear, concise and compelling when it comes to communicating your USPs so your customers know you’re different and worth spending money with. The key to this is to make sure you’re speaking with your customers still.