These reasons for business failure are restricting your success. Get over them and make your business a huge hit
Attaining 6 figure becomes one of our dreams as soon as we enter in our late teens. With high energies, massive hopes, and courage to do something, we often find business as a starting point for the achievement of our dream. Even if the majority of the people don’t start the business in actual, still such a scenario is well imaginable, isn’t it?
The problem is for the people who actually perform all the steps to start a business and manage to run a good setup. They put in all their effort and resources, but earnings in 6 figures continue to be their dream, and sadly, most of the startups can never reach there in the entire lifetime. What do you think is wrong here? Probably, the approach or the path that they are taking to reach success.
After analyzing this problem, we have decided to share some of the reasons because of which businesses do not reach 6 figures. So, here in this article, we’ll try your small setup to become one of the success stories that you have always dreamt for.
7 Business Failure Reasons inhibiting 6 figure income:
After the complete analysis of the situation and a general observation of the mistakes that most of the startups make, we have concluded these 7 points to be the main reason behind the issue.
1. Serving the “masses” approach:
As a new business, you want as many customers as you can get. Obviously, because you earn a profit, and this is exactly what should be done by a startup. But the type of customer that you are attracting is the focal point that most of the businesses often miss.
For most of the businesses, everyone who is buying the products or the services of the company is a customer, not only for once, but he/she is also included in the list of the prospective customer as well. And this is where everything goes wrong.
The reason that most of the mentors and business gurus want you to select a niche or the target market is that it helps you in pinpointing the interests of the customers and makes the business decisions accordingly. But when you start serving everyone, the problem is that you lose your ability to make specified decisions that could make your business grow.
“Expect change. Analyze the landscape. Take the opportunities. Stop being the chess piece; become the player. It’s your move.”
It is just like serving everyone in the world with peanut butter. You might like it; maybe your friend would like it too. But not everyone in the world likes it, and there is no chance that they would like it ever. So, if we extend this example if your business is to make and sell peanut butter, then you’ll have to find the people who actually like and want to buy it. The same goes for all other businesses, product & services categories.
What can you do?
When you try to make everyone happy, the result is that you won’t be able to make even a few people happy. So, they won’t come back to your business, resulting in no or limited sales at all. On the contrary, if you manage to make a few people happy, they can be your recurring customers, and you can make better and more facilitative decisions to grow your business; thus, the chances of getting the 6-figure income would increase and the reasons for business failure would decrease.
2. Unequal distribution of energy in different business phases:
We expect disagreement on this point from our readers. Usually, it is believed that higher energy is better and is the reason for the motivation and gives the driving force to the business, especially if the business is a new and small setup. This can be true but on one condition. Do you really think that maintaining the same level of energy would be possible throughout the lifetime of business? The answer to this question is probably a No. because we all know that such a scenario is not possible.
When you start your business, you are more passionate about it and willing to sacrifice more for it. But as soon as things settle down, you start to set up your own routine. Lack of energy and focus is visible. The sudden fall in the energy level or motivation (whenever it may be; after 6 months or a year) is going to create a significant impact on your business, and this one is going to be long-lasting. This could be the result of excessive exhaustion level as well, so you’ll have to set your goals and energies right, specifically directed towards the long-run success
What can you do?
What can be done here to avoid such a situation? This is actually a million-dollar question that you would have in your mind. Our experience and the general observation about the business suggest that setting up a schedule from the very start can be extremely helpful. You might be ready to put in extra energy at the start, and you’ll require to do so, but keep it to a manageable degree and don’t over exhaust yourself so that you have any energy left for the growth stage of your business.
If you follow this simple piece of advice, there is a higher chance that you’ll land up earning 6 figure income from your business, and you’ll proudly be able to boost your 6 figure job (not really a job, but that is going to be your source of earning, so you can call it a job, can’t you?)
3. No concept of team building:
For the initiation few months of the business, you could be the only one working there; that is totally understandable. In such a situation, it would be you doing the purchasing part, delivering part, decision-making –part, finance part, or any other activity that your business would demand you. But once you are established and are likely to grown, then you can’t continue your business with this approach anymore.
Now, you’ll be considering it a stereotypic point, thinking that obviously, you won’t be able to handle everything once you’ll be expecting to expand and serve more customers. So, you’ll definitely be hiring more people.
But we are not pointing that you won’t hire new people, the problem that most of the businesses face here is that the owners can’t actually let go of the concept of one army even when they hire more people. You’ll see them interfering in every domain when they know that they have hired a specialized individual to handle that job.
It is your business, and you have the right of oversight, but you’ll have to believe this as well that a constant interference in someone else’s work domain can enhance the level of dissatisfaction and can reduce the motivation level to complete the task with full motivation.
Additionally, this is going to disrupt the chain of command, creating issues when it comes to accountability and responsibility. All of this results in total chaos and the lack of 6 figures job that you have always been dreaming of. In the worst-case scenario, such a mess can actually become one of the reasons for business failure.
Coming together is a beginning. Keeping together is progress. Working together is success. – Henry Ford
What can you do?
Another aspect that we would like to discuss in relevance to the team building is that if some of the business owners come out of the initial management perception, they aren’t aware of team building (training, motivating, delegating, etc.) or they don’t want to invest their few resources on this dimension. It also leads to another reason for the stagnant growth of the business. So, make sure that you should avoid such things and make your business a huge success.
4. Lack of vision:
You would be considering that “vision” is a term that is used by large companies, mostly conglomerates, to highlight what they want to achieve. And as a small business, you won’t be considering it relevant. This is the mistake that you are making and a reason that your business has not reached the 6 figure income up till now.
Vision is no way limited to large companies only. Being visionary is something part of the leadership qualities and skills. You should not only have an implementable plan for your business in the upcoming years, but this skill actually allows you to keep your business safe from the unforeseen problems that are going to impact your business in the short term and long term.
Being visionary means that you can actually analyze what is going on around you and which factors or going to result in a negative or positive consequence in the future. Based on this judgment, you make changes to your business and avail the opportunity or reduce the threat impact.
Entrepreneurs are simply those who understand that there is little difference between obstacle and opportunity and are able to turn both to their advantage.
What can you do?
As discussed above, as most of the status and small businesses keep on perceiving, vision to be associated with large companies, they fail to implement it for their business, and the result is no chance of getting any closer to the 6 figure income.
You should make sure that you have this skill of being visionary in you. It will help you in getting a better overview of your environment and see what is good and what is bad for your business in the upcoming years.
5. Experimenting is considered a taboo:
Playing safe is a good approach to start your business. But keeping it too safe is not a good idea. When you are in the market, you need to experiment and see how you can take your business to the new heights.
Keeping yourself to the limited domain is going to keep you and your business’s scope to remain limited, and this is not the way you can reach 6 figures jobs. You’ll have to add in some innovation and try something, probably that has never been tried before. But if that goes totally absurd for you, then at least try something that you haven’t done before. Break your shell and come out of it to find what’s new and how can you adopt it for your benefit. And you’ll at least make an attempt to reduce the reasons of business failures.
Men acquire a particular quality by constantly acting a particular way . . . you become just by performing just actions, temperate by performing temperate actions, brave by performing brave actions. – Aristotle
What can you do?
You should focus on your strengths, for that matter. They’ll help you in identifying the most suitable area to experiment with. It will help you in creating a core competency for your business and at the same time, polishing your existing skills for you.
Unfortunately, this is the last concern of the businesses these days, and this is why you see them performing at a mediocre level throughout their lifetime. Have you read the stories of some of the large companies, especially the technology giants? How they actually throughout out of the box and it is because of their efforts that we are enjoying wonderful breakthroughs in technology, and that is the only reason that these companies have been earning really huge amounts on a yearly basis.
You can do that as well. Experimenting is the key here. If you have limited resources, you can go for smaller risks, but just starting a conventional business and then expecting it to generate profit to meet your monthly needs is no way something to relish on. Think about that!
6. Lack of agility:
The world is dynamic, and so should be you. But new entrepreneurs or the owners of the small business don’t think it this way, and that makes up one of the prominent reasons for business failure. As a startup, you would have created a business plan. This document is important when it comes to the provision of guidelines about the operations and working of the business, but it does not mean that you should stick by it word by word. But most of the businesses make this mistake of keeping either a business plan or the initial style of working as the guiding force behind it. No doubt, this makes them stick to the income that they have at the moment.
In order to succeed in the business world, you need to show some agility. You must have the ability to capitalize on the changing environment. This is going to help you in getting the most out of your business. This will indicate the agility in terms of adjusting yourself and your business to the changing environment.
What can you do?
But there is another aspect to it; agility can also be seen in terms of the internal processes of the company. In today’s world, you can’t expect lengthy hierarchies or complex procedures to be in place. This is why you must keep the internal processes of your business simple, as well. It will allow you to be in a better position to satisfy the customers. Additionally, the agility of the internal processes would also make it easier for you to respond to the external factors and capitalize on the opportunities available in a better way. You’ll be able to overcome one of the reasons for the failure of business.
7. Ignoring the little wins:
As a general approach, reaching a 6 figures job actually requires you to do something big every month so that eventually you’ll reach a 6 figure earning in 1 year or so. But is that practical? The answer is no. As a business, you can find one bog opportunity and leap onto it for success, but that isn’t possible every month. If you want to give a boost to your revenue, you’ll have to do something new, something better, but not finding anything new is going to keep you stuck in the same position. So, don’t you think it is one of the reasons for the business failure or at least the stagnant growth that the business has? Indeed it is.
What can you do?
So, the thing that you should do to reach the 6 figures jobs benchmark is that you need to focus on smaller things that could give you a smaller but constant increase in the revenue or the growth of business in one way or the other. For example, if you are going to improve customer relationship management, it might not require more resources as existing employees could help you with that. But the improvement with the relationship of the customers is definitely going to pave the way for you to bring them back to you, thus increasing the overall retention of your business.
“Satisfied customer is the best source of advertisement” ― G.S. Alag
Additionally, this step is also going to increase the positive word of mouth, thus enhancing the chances that more customers would become the part of your business as a result of references (even without spending the marketing budget), so isn’t this approach good.
“The customers perception is your reality. What they think about your products , MATTER. If you dont put your customers perception first, THE GAME IS OVER.” ― Sharfaraz Ahmed
Most of the businesses miss these little things that can bring them the revenue and keep their focus on some big opportunity grabbing only.
These 7 reasons for business failure discussed above are the basic ones that highlight why do the businesses don’t reach the 6 figures. In most of the pints, what we found is that business owners aren’t aware of their capabilities, or they don’t find these shortcomings as the real weaknesses. So, if you are a small business owner who wants to live a dream life with a decent income, then try to overcome these weaknesses. We are sure that overcoming these weaknesses and replacing them with the tips mentioned would actually lead to better results.
If you have some implementation plan to get everything done, then please share that with us, so that all our other readers can benefit from it as well.