Starting a business always entails risks, and unfortunately not every business will thrive. A recent article, How to Rebuild After Your Business Fails by Mike Kappel says that according to research, roughly 30% of new businesses fail during the first two years of launching. Here’s why.
- Lack of research on market trends/demands.
Businesses fail because of lack of market demand for their product/service. It’s critical to carefully investigate and thoroughly research the market you are trying to enter when you launch your business. Think outside the box by researching unsaturated markets and develop something new that will attract customers rather than trying to go into a crowded market.
- No concrete business plan.
One common mistake entrepreneurs make while launching their ventures in a commercial office space is not having a solid business plan. Starting a business isn’t just about your passion, but you should have a realistic and attainable business plan. It must be clear and concise and must contain sections of your mission statement, market analysis, details about your product or service, and business goals. It should also include possible problems and solutions for issues you may encounter.
- Insufficient Fund.
Many businesses launch with insufficient capital, so it might mean that your business can’t pay bills or loans on time. Plan your finances when you start your business, consider expenses such as office space rentals, insurance, supplies, salary and wages, etc. to help raise enough capital and to keep you financially stable as you grow your business.
- Poor location and lack of internet presence.
Your location lends trust and prestige to your business reputation. You must focus on your internet presence just as much as your physical business location. Create an inviting website that’s easy to navigate for potential customers. Your strong internet presence about your business’s product/service is necessary for customers researching and shopping online.
- Ignoring customer feedback.
Businesses that lose touch with their customers by ignoring customer feedback are most likely to fail. Watch and observe customer trends and find out what people like about your product or service. Listen to customers feedback whether positive or negative and respond to them courteously and accordingly.
These are the most common causes why a business doesn’t prosper. So if your first venture failed, take time to recover and give yourself a financial and mental break to relax before you dive into another venture. When you’re ready to take another venture in Lake Mary, YourOffice Lake Mary features a network of world-class business addresses. Each location offers both beautifully appointed short term offices Lake Mary and permanent individual office space Lake Mary. Our offices are move-in ready and equipped with top furnishings and technology that are guaranteed to leave a lasting impression.
What are the lessons you learned from your first venture? Let’s see your comments below. You can also visit us on Facebook.