It is a common belief that if your small business can make it through the first three years, you have a good chance of making it. It is a fact that for every successful business you see out there, there are many that didn’t make it. Why is do some businesses survive, while others don’t? There can be many answers to that question.
One factor that more often plays a big role in the success or failure of a business is location. We’re not simply talking about which street to locate a business but what city. Some people just don’t do their homework when it comes to things like taxes, hiring costs, and demographics. Locating a business in the wrong city could be a recipe for disaster.
Does your business idea have a customer base who want that product, or service? Studies have shown that 42% of small businesses fail because there’s no market for their product or service. If you’re going to risk your money on a business, make sure there’s a market for it.
Part of a successful business is good customer service. You need to know your customers and their needs. Believe it or not, 14% of small businesses fail because they ignore their customers. People are smart and they will soon figure out where they can get better service.
If you have a business that only requires one person to run it, then maybe you’re ok with this one but for the rest of us this applies. Surround yourself with the right people. People don’t realize it but 23% of small businesses fail simply because they don’t have the right team. Finding the best employees is critical to your success. There are many resources online to help you develop a strategy to help you find the best employees.
There are a multitude of other reasons why businesses fail, but knowing theses will give you have a better chance at success.