Have you ever wondered why some businesses succeed while others failed? There isn’t one clear cut answer, as the reasons are many. However, it pays to know the difference. According to research, 50% of businesses fail during the first five years. Understanding how this happens is half the battle of avoiding the same outcome. Here are three areas you should focus on in your own business.
Good vs. Poor Financial Decision-Making
It can be just as easy to make good decisions as it is to make bad ones. The key is in knowing what is the best decision for your specific business. For example, putting money aside for a rainy day, rather than spending it all at once is a good financial decision. Entrepreneurs that create monthly and annual budgets manage their finances better than those who don’t. Finding affordable ways to promote their business is significantly better than paying for ads you do not need.
Granted, even the most well thought out decisions can go wrong. However, the more you plan, the better your chances in the long run.
Understanding The Internet
Not every entrepreneur is a master of the Internet. Those that aren’t will spend some time creating a website and might hire a web designer to make vital improvements. They will focus on their SEO (see seoexplode) to increase their search results while engaging on social media. In addition, they will use social media to market their business on the appropriate platforms to reach their key demographics. This behavior encourages customers and employees to send the word out about your business.
On the other hand, without a basic knowledge of the Internet, many problems can arise affecting your business. For example, creating a website without outside help can limit that amount of traffic and sales you receive. Today’s customers notice everything, and an unprofessional website simply won’t entice them. Failing business owners also stick to traditional methods of marketing. While some are still relevant, they are often more expensive and time-consuming than digital marketing methods. And in some cases, they also ignore the power of the Internet altogether.
Competitive Research
Smart entrepreneurs know that to survive, they need to research their competition. They then go one better than them, with better pricing, shipping offers, improved customer service, and more innovative products and services. Knowing your competition is one of the keys to longevity in business. Those that do not incorporate this research into their marketing strategy risk having their customers stolen away.
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