A large number of businesses fail within the first six months of their inception. However, that doesn’t have to be the case as there are easy to implement ways to make sure your business can sustain itself for the long term. In this article, we look at some of the main reasons why a new company does not survive that all-important first 6 months.
Lack of Research
If you don’t start by knowing that people really want what you plan on offering, then there will be no base on which to survive. Usually, entrepreneurs are passionate about their ideas, and that’s certainly important. But without proper research to back your plan, that passion isn’t enough. You may have a really exciting and innovative product, but if no one wants it or there is no market for it, then the business will fall on its face.
Not enough money
One of the main causes of success or failure for any new venture is its business finance structure. There are two sides to it; the first is to have enough money to start the project, and the second is to have enough to continue what you have started. It’s straightforward really: If you don’t have the cash to invest, you will not be able to make a profit. Make sure you have enough money to keep your business going all the way to the stage where it can sustain itself. Usually, enough capital for around 18 months is recommended to ensure your company does not fail.
Faulty business model
Another primary reason that businesses flop is that they do not have a realistic business model. A plan that sets out the goals that you want to achieve, based on research on how to meet them and with an understanding of the correct means and resources required, is of critical importance. Sometimes companies exist on hopes and dreams alone, thinking that will be enough to make them successful. But that can be a significant risk factor.
Failure to promote your product
If people don’t know what you are selling, they won’t be buying it – it’s as simple as that. You should make sure you market the product in such a way that it not only reaches a vast number but actually reaches the right people. Come up with a plan based on the requirement that you must reach both the digital and traditional markets so that you cover as many bases as possible.
Physical and online presence
Your visibility matters a lot if you plan on having a successful and long-lasting business. If you are dependent on people visiting your store or company, then it should be in an easily accessible location. On the other hand, having an internet presence is beneficial for all kinds of businesses as people know they can access you anywhere, anytime. Make sure you are available on all the leading social media platforms. Failing to comply with this essential factor stops many businesses from growing.
Engaging with customers
You will not know how satisfied people are with your product until you get in touch with them. Even if you are doing well in that initial first 6 months, do not assume that means people are 100% happy with what they are getting. There may be some issues or some constructive criticism they can share. In most cases, it’s only after a few months of sales going down that businesses realise they need to start consulting their customers, by which time it could be too late.
Not having the right team
If you do not hire the right people for the right jobs, then the system will not work. A team that is passionate about working and has the skills to be successful will go a long way to ensure the first six months become the basis of a long-term journey. If you cannot find the right expertise when filling posts, then hire the services of a recruitment agency so that you start on the right foot.
And last but not the least,
Eventually, it all comes down to how well you are managing your daily and long term processes. You may have all the resources and plans in the world, but if they aren’t implemented correctly, you will go out of business very quickly.
Many beginners do not have experience in dealing with all the issues and situations that as a manager, you will face. If this is you, you would do well to seek help when you face a problem instead of risking what you have built.