By Lauren Fenthum
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Whilst the idea of starting your own business sounds glamorous, the success rates for these startup ideas are often shown to have the opposite effect. Business failure is a reality. In a recent survey done by the Bureau of Labor Statistics, showed that 80% of businesses will survive the first year, with that percentage decreasing drastically each year after that. However, for entrepreneurs, this is not the most comforting statistic, as nobody wants to group themselves in the category of failure, but this doesn’t take away from the fact that there is a real possibility of your business failing. Here are some tips on how to avoid failure.
The worlds most successful businesses deliver the most value. Find a way in your business where you are able to under-promise but over-deliver. Set your goals by focusing on the value proposition, if you are not adding as much value as your competitors then you may need to rethink your approach.
Failure to connect with your target audience is the ultimate set up for business failure. Not being able to connect with a demographic means that you do not understand your consumer's needs and wants. Not understanding your consumer can lead to failure happening before you have even started. Try set up focus groups or surveys, and understand your audience, who they are, and how you will be able to reach them and what they expect from your businesses products and services.
Understandably, most businesses have so much on their plate that they forget about the smallest details. The inability to optimize conversions becomes futile if your business has a high burnout rate. Address conversions early on to ensure a positive ROI and a sustainable consumer base.
Building an effective sales funnel should be the first priority for any entrepreneur. Sales funnels eliminate stress and aid in the development of consumer relationships through email campaigns.
Failure within businesses can ultimately be seen through poor strategic and ineffective leadership. Newcomers on the business scene without real experience may find it incredibly overwhelming as to what is expected of them and what it actually takes to run a successful business. It is a good idea to gain advisers that you trust, that are able to assist when things become difficult. It is also suggested to find a mentor and somebody with experience in the field so that you can learn from them and use their expertise to ensure the longevity of the company.
Starting a new business can be a daunting and exciting venture. All though there are certain risks involved, it is better to understand that failure is not impossible and actually quite likely. But this is no reason to give up. By pushing through you gain learning experience and are able to prove your big ideas in the crowded market space. Failure, no matter how big or small, within the business is inevitable. Embrace it and learn from it in order to beat the statistics.