We’ve all heard the dismal statistics about the failure rate of small businesses. In a recent Small Business Trends article, “10 Reasons Small Companies Fail”, author Paul Chaney cites, “according to the SBA Office of Advocacy (PDF), about two-thirds of businesses with employees survive at least two years, but only 50 percent make it to the five-year mark and just one-third celebrate their 10-year anniversary.”
So why do so many small businesses fail? What do small business entrepreneurs not know that could help them succeed? Paul Chaney gives some compelling reasons for small business failure including starting business for all the wrong reasons, not planning properly and failure to advertise and market. While all 10 reasons the author cites are valid, what I have seen lacking most with small business owners is the lack of strategic planning.
Strategic planning begins with market research, as Paul Chaney explains in #3 of his article, “one burgeoning entrepreneur, enthralled with the idea of becoming a salon owner, started her business without first conducting market research to see if the area could support such an endeavor. Try as she might, she was never able to build a customer base strong enough to keep her doors open.”
Without market research to understand if there is a market for your business idea, why potential clients would buy from you over the other options available, what price point the market will bear and a slew of other variables, your chances of success will be seriously limited.
The Business Trend article advises taking your time to develop a strategic Marketing plan FIRST. And in my experience, this is the number one key to success.
If you’ve decided you want to be one of the small businesses that make it, hiring a Marketing Consultant is a wise investment; one that will pay for itself in spades for years to come. Fortune Marketing is a Marketing Consulting agency with more than 20 years of experience. Contact us today for a no-obligation consultation.
To read the rest of the article “10 Reasons Small Companies Fail” click here.