All businesses start somewhere, and not all companies will be successful. Understanding the common reasons for business failure is key for implementing effective strategies to prevent it. Owning a business is hard; we get it, but don’t let challenges hinder your business’s success.
There is always a solution to every problem, even for a failing business, no matter how much of a ‘dead end’ it may seem, so don’t give up yet.
Instead, take a minute out of your day to read our blog on different ways to revive your struggling business, and we can assure you that your outlook on owning a business will change! Want to learn more? Read on for more information on how to revive your struggling business.
Improve Your Customer Service
Improving your customer service is a great place to start when improving your business. Excellent customer service is a great way to maintain clients’ loyalty to your business, as well as leave your business with good reviews, eventually leading to an increase in clients as your business has a good reputation.
Many businesses, especially small businesses, fail due to their lack of customer service. Although the business may be well known and sell good products, customer service can significantly let it down.
Now, we know that improving customer service is a great first step to reviving your business. But what methods should you follow to ensure you do this effectively?
Firstly, you have to understand your customers and what they want. For example, if you have a lot of customers who order from your business and expect next-day delivery, it is important that you deliver what the customer wants.
A good business owner/company director converses with their customers to ensure that they feel in safe hands. This will allow your business to grow online and in person as more and more customers trust your business.
Another way that you can improve customer service is by seeking and promoting customer feedback. Doing this will give you a better insight into your customers’ thoughts and opinions about your business.
An effective way to do this would be to get your customers to complete a short survey. The shorter the survey, the more interactive customers will likely be.
Consider Having a Business Coach
Every business starts off as a small business; some may do well almost instantly, while others may not. This is why having a business coach is a great asset to struggling small businesses. But what does a business coach do?
Business coaching works by creating a business plan suited to your business. So if you’re a struggling business actively looking to reduce costs etc, a dedicated business coach helps to save your business.
Our experienced directors at MOVE believe that business coaching is a great way for you to advance yourself and your business.
A business coach helps you plan for the business growth and success of your business to ensure that everything runs smoothly. At MOVE, we believe that hiring a business coach means hiring an experienced expert that you can trust when it comes to building your business.
The business world is hard and very competitive. You want to stand out from the crowd, you want to be unique, and most importantly, you want your business to do well. What better way to do this than by hiring a business coach to help you along your path to success?
For example, if you’re facing cash flow issues, exploring financial tools like invoice financing can provide the necessary support for your business, along with hiring a business coach.
Not only does MOVE business coaching work by helping your business, but it also focuses on all aspects of it.
For example, being a successful business owner isn’t just about growing your business. It is also about growing in other areas, such as:
- Helping you expand your network
- Helping you to expand within your personal life
- And finally, allowing you to grow within your family life and professional career
Offer Better Quality Products
Many products can quite quickly become outdated or may just not be up to the correct standard anymore. Although this may seem like a tricky situation to get out of, it is quite simple.
The main thing you need to consider is what you need to do to improve your product or service. This can be done by researching, checking popular and unpopular products (e.g., through the back end of Shopify), or simply interacting with your client base to allow for feedback.
For example, start by researching new suppliers and manufacturers that can source your products at a reasonable price but with better quality.
However, carrying out a SWOT analysis can help you identify your strengths, weaknesses, opportunities, and threats. For instance, if you are producing in-house, it is crucial to research better materials/items to address your weaknesses and explore new opportunities.
For example, if you are a small business owner specialising in the fashion industry and you feel that the quality of your fabrics is quickly declining, you would then consider looking for better-quality materials or suppliers to get your materials from.
Just remember that the only reason for the failure of your business is not down to what you are selling and cutting costs, but mainly down to giving up. There is always a way to improve your business, if not alone, then with a business coach.
Update Your Marketing Strategy
Good marketing strategies are one of the many key to any successful business, especially for struggling companies that need to reassess their target market and messaging. There are a variety of things that need to be considered if you are not reaching your target audience.
For example, pricing: ask yourself, are my prices for my products reasonable? Am I interacting with my customers as much as I should be? Am I supplying the correct products for the correct target audience?
Although this may seem like a lot to consider, they all have simple solutions. For short-term relief, if your prices are too high for what you are selling, consider lowering them to attract more customers.
If you are selling a product that other companies also offer for a lower price, who are the customers going to purchase from? They will most certainly buy their products from another company for a lower price.
You want to stand out from other companies; that is what makes your business unique, so offering the best prices and offers will most certainly allow you to stand out from the rest.
Improving your online marketing strategy is imperative for any business, regardless of size or industry. This may include SEO and PR, or simply assessing your business model.
What Are the Common Causes of Failure and How Can You Avoid Them?
Business failure can stem from various factors, such as not enough market research and understanding. For example, entrepreneurs may launch a product or service without thoroughly assessing demand, competition, and consumer preferences.
To avoid this pitfall, make sure you do your research, analyse industry trends, and gather customer feedback before launching your business.
Another common contributor to business failure is poor financial management. Poor management of finances, such as overspending, improper budgeting, or neglecting cash flow, can lead to debt or bankruptcy.
To prevent this, maintain accurate financial records, create realistic budgets, monitor expenses closely, and seek professional advice when needed.
Furthermore, ineffective leadership and management can negatively affect a business. Weak leadership, a lack of vision, or failure to adapt to changes in the market can prevent growth and innovation.
To avoid this, adopt strong leadership skills, encourage open communication within your team, and stay flexible in your approach to business operations.
Additionally, ignoring technological advancements or failing to stay up-to-date with trends can affect your business. Embrace innovation, stay updated on industry developments, and continuously look for ways to improve your products or services to stay ahead of the competition.
What is the Biggest Challenge for Most Businesses?
One of the biggest challenges for most businesses, regardless of size or industry, is achieving sustainable organic growth. Sustaining growth involves consistently expanding revenue, market share, and profitability over time. However, numerous factors can hinder this process.
Market saturation and intense competition pose significant challenges for businesses striving to grow. In crowded markets, standing out and capturing market share have become increasingly difficult.
Economic fluctuations and market uncertainties can make this even more challenging, making it hard for businesses to predict and plan for future growth.
Moreover, maintaining relevance and adapting to evolving consumer preferences and technological advancements is crucial but challenging.
Rapid changes in technology and consumer behaviour require businesses to constantly innovate and adapt their products, services, and strategies to stay ahead of the competition.
Access to capital and managing finances also present significant hurdles for many businesses. Whether it’s securing funding for expansion, managing cash flow effectively, or navigating through periods of financial instability, financial constraints can impede growth and even lead to business failure if not properly addressed.
Furthermore, attracting and retaining top talent is a big challenge for businesses. Building a skilled and motivated workforce is essential for driving innovation, delivering excellent customer service, and achieving sustainable growth.
However, talent competition is intense, and businesses must invest in recruitment, training, and employee retention strategies to stay competitive.
Overall, while there are numerous challenges that businesses face, achieving sustainable growth remains one of the most daunting and crucial objectives for long-term success. However, there is no need to worry, as we at MOVE are here to help you and your business thrive.
Revive Your Struggling Business With Business Coaching at MOVE Online
If you feel that you would like a bit more professional advice and support to help your struggling business, then we at MOVE Online can help. We understand how difficult it can be to run a business with most of the responsibilities falling on you, which is why we are here to help. Business coaching allows you to focus on the growth of your business to ensure that everything runs smoothly.
Business coaching is a great way to advance yourself and your business. Here at MOVE, we offer experienced coaching sessions and events to help you along the path to success as well as make sure your business runs smoothly. Our coaching sessions can help you:
- Become a better leader
- Develop your communication skills
- Achieve long-term success
- Gain a new perspective
To start your business coaching journey or to speak to a member of our team, don’t hesitate to contact us today at 07852 970 718. We look forward to helping your struggling business.
Mark is a multi-award winner in business networking and relationship building. He is passionate about coaching and mentoring business owners and professionals through 1-1 & group coaching, team performance workshops and group mastermind sessions.