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Reasons why your business will fail

7 Reasons Your Small Business Will Fail (And How to Avoid Them)

Fail in business


The 7Reasons why your business will fail, if you avoid all of these reasons the chance's for your business to succeed are a lot higher.  So making sure that we understand what makes a business fail and what makes a business succeed is quite important.


1, You build a product or a

service.


That there is no market for, and people just don't want to buy it. And time and time again, people will sit there and convince them selves that the product or service that they're building and developing and trying to sell to people, are things that people want to buy, where they haven't actually gone out and asked them and done their market research and ask the potential customers, would you buy this? Seems like an obvious thing, but a lot of people don't do that.

2, Not able to sell to them 

or the inability or the lack 

of knowledge.


People sometimes justdon't feel comfortable selling or do not know how to sell their product. And, time and time again, people sit there and worry about selling and saying, ooh, I don't want to do sales. I don't want to besalesy, it's too salesy. I don't want to come across as being salesy, where if you're in a business, you're there to sell a product or a service. because if you've done your research right, and your market research. So, not being able to sell to your target client or customer.

3, Cashflow calamity.


I sort of like sat down and thought about that sort of phrase all of like, two seconds. But anyway, cash flow calamity, you run out of cash, and essentially, it means you are making less money than you are paying. And that could be for all sorts of reasons, including pricing yourself too low. You need to price yourself according to the value you're offering.

4, No vision and no strategy 

for your business.


How important it is to have a vision and astrategy for your business. It is really, really important. And it surprises me and it baffles me so many times when I speak to many business owners, and they do not have a vision or strategy set for their business. So don't worry if you haven't got one set, you're not alone. But unfortunately, it might also be one of the reasons why alot of businesses fail. So now you know, go about setting a vision and a strategy for your business 'cause it is that important.

A vision is about the destination where you're heading. You need to know where you're going. Otherwise, how do you know you got there or how do you know how to get there. You set out, when you setout and go to any journey you pretty much have set in your head.

5, The wrong people doing 

the wrong things.


Sometimes unfortunately, that might include you as the business owner doing the wrong things and not letting the right people do what they need to be doing. Building teams is hugely important and it can make or break a business. And building the right team around you is going to be vital.

One of the things that a lot of people say and you've probably heard it before is, hire slow and fire fast. And this is a really, really good piece of advice. When you're building a team, make sure that you hire really slow. Take it slow when you're trying to find the right person to do the right task and the right role and the right job because if you find the wrong person really early on, and you probably will. So don't make your firs thire a really big one. Make your first hire as maller sort of role.

So that it can be less costly. But as you scale and as you grow more, make sure that you're hiring very, very slow, very slow. But when it comes to firing, and I know that sometimes this is an uncomfortable situation to be in, you need to fire fast because having someone around that is not contributing to the business in the way that you have set for it strategically, can be quite toxic sometimes or quite damaging to your business both inside and out. So making sure that you have the right people doing the right things and building the right team around you is crucial. So not having the right team is one of those reasons why your business could potentially fail.

6, The speed and rate that 

you are able to grow and 

adapt.


This can be a double edged sword some times. Some times you can be going too fast and some times it can be going too slow. And some times you need to adapt fast for, you know, the changing environment and market like we've had inthe previous sort of times. But also, sometimes you need to sort of stay on course, and be consistent and focus on one thing. So having your finger on the pulse as the CEO of your own business. Is really, really important to be able to understand the market around you, and when to put your foot on the brakes and when to put yourfoot on the accelerator. And it's one of the things that I think we potentially failed at because I think we grew and scaled too fast in the business that I talked about here where, which failed. I think we scaled too fast.

7, Wrong type of passion.


What do I mean by that?
A lot of times I hear people saying, build a business around your passion. And that's the wrong way around things. You should not be building abusiness around your passion, build a business around a market need, build a business around something that makes business sense, that is going to make money and there is a need and there is a demand and there is a good market size. 

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