Nearly every business owner or entrepreneur knows that many businesses fail every single year. Statistics shows that:
- Every 8 minutes one business in the world fails,
- 80% of companies fail in the first 2 years of their operation,
- 96% of companies fail in first 10 years of their operation.
But have you ever thought about why it’s happening? During my conversations with entrepreneurs whose businesses failed, I hear a lot of stories and ‘rational’ reasons why. In fact, they are only trying to explain themselves or give an account of the situation.
The most common reasons I hear from entrepreneurs as to why their businesses failed are:
- financial crisis
- bad economic climate and hard times
- overwhelmingly large and aggressive competition
- insufficient cash flow
- Excessive maintenance costs
- Excessive taxation.
There are countries in the world where governments do not support young entrepreneurs and start-up businesses and where taxes are ludicrously high; in fact, all of these are not main reason why businesses fail.
By reading my articles and publications, it would become clear how I have helped businesses and entrepreneurs grow their businesses using tried and tested business growth and marketing strategies.
Lack of marketing in two main arenas:
- Action taken to start marketing.
- Sustained and systematic marketing.
These are the prime reasons for catastrophic business failure.
START YOUR MARKETING EFFORTS TODAY
Too many entrepreneurs start their business thinking they will open doors of their company and clients will start coming through the doors in huge numbers, asking for their products and services. The truth is much more painful and these entrepreneurs very quickly close their company based on the reasons I mentioned before.
I am not really surprised and do not blame them for this. Some do not even know what happened or why. How were they supposed to know if the most important thing for them was just to start a business?
Realistically, it does not matter if you have been working on your product for three years and it’s absolutely fantastic. It does not even matter how good it is, nobody will buy it if they do not find out about the existence of it through your marketing efforts.
Presenting a new product or service to a new market that does not know you or your company is really difficult and hazardous; and without proven marketing strategies, being successful in these circumstances, it is like a miracle.
SYSTEMATIC AND CONSISTENT MARKETING EFFORTS
The situation is similar for companies who have been in the market for longer. It is just a matter of time when they stop their marketing efforts and sales results will start getting worse. Combined with tough economic market conditions, it can lead to serious problems or even a failure of the business.
Why is this so?
Clients and are being bombarded with adverts and offers from everywhere at this time,: television, press, radio, Internet, digital signage etc.
Look at your mail box. How many offers and ads do you get every single day? Most of them end up in a trashcan. The efficiency of those ads is more than doubtful, which does not change the fact; you have to break through the crowd with your offer by using regular and effective marketing efforts.
You cannot rely on sending one offer and expect unbelievable conversion rates. In most cases you need multiple contacts combined with appropriate marketing strategies in order to be noticed, get the client, build trust, establish a relationship and achieve your goals.
If you can do this, you will get accumulative results. More people will be talking about you, your company will be more renowned, you will acquire new customers and ultimately, you will sell more and more products and services. You will be getting new business opportunities, partnerships and offers to take a part in numerous different events. You will see a so called “snow ball” effect and this is what you want.
Remember, clients are constantly changing their style, tastes and trends. There are many factors that influence the situation on the market and this is the reason your marketing should be regular and systematic.
The good news is most of your competition never makes effective marketing efforts at all. If you only take action and try only some of the proven and tested marketing strategies, you can outperform and outsell your competition leaving them far behind. And the most important is you can do it now!
I want you to remember the answer to one simple question from this article. Thanks to this, you will know more than the vast majority of business owners in the world. If the next time I ask you:
In which moment in time you should stop your marketing efforts? With a smile on your face you will answer: “Never” 🙂
Moreover, there are no black magic or alchemy tricks you have to know to promote your business and achieve success. You only need a few proven and tested marketing strategies in order to make your results exceed your expectations.
With over 12 years of experience in Business, he positively impacted up to 1000 businesses with his training, consulting, international speaking and advice.
He's an active entrepreneur and business owner, he worked with Universal Music and owned a Music Distribution Business
Jack owns a Digital Agency (Brackets). He was involved in marketing campaigns for concerns such as Western Union, Mercedes, Ruuki, Hewlett Packard and numerous other well-known brands.