If you are considering starting your own business – or are in the process of it – it’s crucial that you’re aware of the barriers that might prevent it from becoming a success. While 660,000 new companies are registered in the UK every year, not everyone is aware that in fact 60% of those new businesses will go-under within three years, and 20% will shut down within just 12 months.
When it comes to starting your own business, you must be innovative, creative and prepared to take risks. Here are some common reasons why start-ups don’t make it:
Failure to understand their customers and market
Before starting any company, you must understand who your target audience are. Who will your customers be? How will you be able to reach them efficiently? Ensure that you identify their gender, age and geographic location, as well as how much they will be prepared to spend on your products.
When you have determined your target demographic, you can brainstorm the most effective ways to market your business. Will you put a heavy emphasis on social media? Or will you instead invest in paid advertisements, both print and online? If you know that your crowd is a young one, for example, the most effective ways of making noise about your company may be through the use of Facebook and Instagram.
Inadequate financing
Cash is king, especially when you’re starting your own company. Ensure that you budget effectively beforehand so that you don’t allow your bank account to run dry within the first few pivotal months. If you do face some short-term finance problems, you could always consider a business credit card to tide you over.
Not having enough passion
You have to believe in what you’re selling. If you don’t, your customers won’t either. You must consider how you can take what you’re most passionate about and make it profitable. Your core belief will keep you pressing on – so what makes you excited? Use your ambition to drive your business.
Not asking for help
Starting a business is hard work, and there is no need to take on every single responsibility. Trying to do everything yourself will only end in disaster – you’ll run yourself into the ground and will be exhausted before you’ve even opened the doors or launched your website.
Hiring the wrong people
Finding the right talent and retaining your staff is vital for success. Holding onto committed, creative and skilled employees can be difficult, but with great support, recognition and incentives, your staff will want to stay with you.
By conquering the above barriers, your business will be more likely to succeed.