Four Reasons new business owners fail to grow ( number 3 is shocking
What is the cause of small business failure? Every day, new companies emerge on the horizon in every industry. While some grow and dominate, others stagnate or contract, eventually failing. There are numerous reasons why businesses struggle to grow despite repeated attempts. Here are the top four reasons why only some small businesses thrive while others fail.
1. Poor Monitoring
You can’t be in charge of a company if you don’t know what’s going on. And this is exactly what happens in the majority of small and medium-sized businesses. They are completely unaware of what is going on within their processes. Without statistics, their company is like a rudderless car with no one to take the right turns and apply the brakes at the right times.
SMB owners have a common — and disastrous — belief that holding monthly business review sessions is enough to keep an eye on the business. In reality, business monitoring is a day-to-day task for which entrepreneurs require an application such as a small business CRM that provides them with a bird’s-eye view of the entire operation in minutes.
2. Dysfunctional Management
Courage, Fortitude, Attitude, and Passion are the ever-important corporate cultures that propel a company. When you add a lack of Focus, Vision, and Planning to the mix, you have a recipe for disaster.
Unfortunately, nearly 70% of small and medium-sized businesses experience the second option, which explains why these businesses have dysfunctional management.
This message is for all small and medium-sized business owners: recognize that a company is a reflection of the owner’s desires and personality. While some of you may want to rule the world, others will be content with a decent living. Whatever the goal, it is critical to maintain a driven culture in your organization. Courage, Fortitude, Attitude, and Passion should be present to create an inspired workforce.
3. Excessive Technology
Technology can be both a boon and a bane for businesses, depending on how it is applied. While larger corporations have greater control over their enterprise systems, SMBs fall short in this area. Instead of having the best applications available, they have turned their business process into a tangle of stand-alone applications.
The accumulation of so many applications has made it extremely difficult for a small company. They devote a significant amount of their time to managing, integrating, and troubleshooting these applications. In addition, there is the added complication of data discrepancy because the records are spread across multiple databases.
They have not realized that, while technology can do many wonderful things, it can also be overwhelming and expensive if not properly implemented. What small and medium-sized businesses need is UNIFIED BUSINESS GROWTH SOFTWARE that orchestrates and manages all of their business processes.
4.Lack of Implementation
Whether you want to achieve 75 per cent or 85 per cent customer satisfaction, these are just numbers on paper until you do something about it. IMPLEMENT THESE POLICIES TO ENSURE THAT YOUR COMPANY GETS ANY BENEFIT FROM THEM.
This is where SMBs fall short. What they fail to recognize is that simply setting high standards and then failing to act on them is as ineffective as not setting any standards at all. They must put in place control systems to ensure that those customer service standards are met. Only then will their good intentions be matched by good results.