Creating and developing a new business is like planting a seed; it needs constant care and attention until the business is strong enough to deal with any eventuality. While there are many variables outside of the business owner’s control, yet without the right management, any business could end up folding.
Here are some of the major reasons a small business might have to cease trading.
- Lack Of Funds – This has to be the number one cause of a business failure. It only takes a few unexpected costs and a bit of bad fortune to put you in the red. When first putting the business plan together, you should have crunched the numbers and taken out a loan if you needed to. The entrepreneur has a responsibility to minimize the risks to the business and make sure that you have the ability to raise funds if needed. For instance, serviced offices in Dubai are the ideal choice as they save decent amounts of elsewhere-needed money, and provide flexible rental terms which take off the burden and the risk of long-term contracts. Look for expenses that are suitable for small businesses- for example, using RingCentral office phone service for your small business to grow communications.
- Poor Marketing – You could have the best product in the world but if your marketing is off-point, you will not be successful. Whatever industry you are in, it is very competitive and all of your rivals will be investing in SEO and other marketing services. The smart entrepreneur understands the need for ongoing SEO work, which is designed to drive traffic to their website and without it, you will almost certainly be an ‘also ran’.
- Poor Management – The manager is the driving force of any business and if the person in charge has no real direction, the business could easily go down. If you would like an honest professional opinion about your business skills, Sydney small business coaching service and programs are available. For those outside of Australia, you can find a reputable business coach to help through a quick Google search. It takes a little of everything to successfully manage a business and as we all have weaknesses, it makes sense to work on these and become a better manager.
- Failing Economy – Take the COVID pandemic as a good example; many small and medium businesses had to fold due to the pandemic. Those businesses that can deliver their services online managed to survive, with the tourism and air-travel sectors being the hardest hit, along with the retail and food & beverage sectors. If you don’t have the foresight to see when things are not so good, it could be a while before you realise that the business is failing.
- Bad Service – The quickest way to close a restaurant is to hire waiting staff with an attitude. Regardless of your industry, it must always be service with a smile and every customer interaction can affect your reputation. If you run a retail business, your employees should be trained to provide a professional upbeat service and should never let customer service be compromised. You know how it feels when served by a person who has an attitude and for many, once is enough, so no matter how hard it is, you must always offer service with a smile.
There are many ingredients that come together to create a winning business; hard work, enthusiasm, research, determination and stamina, are all qualities that a successful entrepreneur should possess.