Starting a new business is easy, but making a business successful is challenging. Only a small percentage of startups are found to be so in tune with their vision and strategy that they grow exponentially.
Stats suggest that more than 90% of startup companies fail to succeed. A small percentage of businesses that do succeed have to go through many near-death experiences before they achieve sustainable growth. Why do so many businesses fail to materialize their goals? This blog post will identify reasons why companies die within their first 5 years and what you can do to make your business a success.
1. No digital marketing strategy
Do you think your business can succeed if your potential customers don’t know about your existence? Most companies fail due to their inability to develop and execute a result-oriented marketing plan. For example, many startups don’t focus on building a sound online presence. Many Canadian companies either don’t have a website or their website is outdated and not optimized to convert traffic.
If you want your business to succeed in a noisy environment where it’s tough to beat giant competitors, have a strategic online marketing plan in place. New businesses, as well as well-established companies, must take advantage of digital marketing solutions. Many companies claim to have a web presence, but they fail to make a considerable impact. The good thing about digital marketing is that it enables you to have a measurable, consistent, and scalable marketing system.
While you’re working hard to deal with the business tasks on your to-do list, don’t forget to make marketing one of your top priorities. It will increase your chances of building a profitable business.
2. No vision
A clear vision is what keeps companies on track during their initial growth stages. The best thing you can do as an entrepreneur is to define your business vision and goals and stick to them. The absence of vision is another reason why companies die rather early. An inspiring vision is like a direction that reflects the core values of a business. Having a vision means the business is clear about its short-term and long-term goals.
3. Not delegating
To build a great company, you need smart people who know how to get things done. So many entrepreneurs want to put on a one-man show, which is not a good strategy. If you think you can do everything from accounting to sales and marketing, you better rethink. Without delegating, you’re likely to end up being stuck in a chaotic and frustrating process.
Start building a team of competent people to break free from mediocrity. It’s also a good idea to use tools that automate various business processes. From online marketing to HR, almost every aspect of your business can benefit from smart people and tools. Focusing on key business matters such as networking becomes easy when you assign day-to-day operational tasks to your team members.
4. No branding strategy
A great number of startups don’t realize the significance of branding and its impact on business growth. Without a branding strategy, your business wouldn’t be able to establish its identity and authority. It’s critical for a company to stand out and stay ahead of the curve, and branding is an effective way to achieve this goal. If you’re committed to turning your business into a great brand, create your unique identity which is persuasive and likable.
Understanding why most companies fail will surely help you avoid business failure. Be prepared to navigate your way through challenges and obstacles.
Reach First works hard to build successful brands through our dynamic digital marketing and branding services. Our objective is to help companies communicate their message in an effective way. Whether you’re struggling to improve your bottom line or planning to launch a startup soon, we’re ready to help you uncover and develop the identity of your business. Schedule a free consultation to discuss your online marketing and business development needs!