The primary reason why businesses fail is that they simply run out of money. But the problem always started well before the day of financial collapse. So the question is, why do they fail? And what should you do to avoid the same faith?
Reason 1 - Failure to understand your customer:
Your customer holds the key to your success deep in their pain, behaviour, dreams, values, and the job they are trying to accomplish. Therefore, it is important for you to have a complete understanding of your customer.
Having a deep dialogue with your customer is the key to success. Which would you rather do, talk to your customers now and find out you were wrong or talk to your customers a year later and still find out you were wrong?
Reason 2 - Failure to communicate your value:
Many tradie business owners work hard building their business, then blow it because they do not communicate their message in a clear, concise and compelling manner.
When you truly engage in a conversation, you'll learn the language of your customer. Listen to the words they use, and then use them right back at them. Do so while focusing on these three questions:
Does your customer know who you are and what value you bring?
Do you communicate efficiently?
Do the words you use persuade your customers to take the action you want them to?
Reason 3 - Self-sabotage through poor decision making:
To run a successful tradie business, you must spend time for personal development .Continuously improve yourself. For example, if you're lacking the ability to strongly relate with people, find a way to gain the necessary skills to do so (i.e. hiring business coach).
Reason 4 - No digital marketing:
To run a business in today's market, you need a website and a social media presence. At the very least, you should have a professional looking website that enables users to find out about your business and the products or services you provide. This is important, especially if you get most of your business through networking and referrals. Your potential customers would want to research your business before they call you. If you don't have one and your competitors do, you'll lose out.
Reason 5 - Inability to run a profitable business model with proven revenue streams:
Your trade business will fail if you are unable to provide a product that will satisfy your target market. You can actually have each of the previous four reasons solved, but still fail in the business model
As a small business owner you need to move swiftly without spending too many resources (e.g. money, time, etc.) on trying to figure things out on your own. There are tools and methodologies available that can help you to do these things efficiently. Adrian Fadini, from Trained Group can help speed things up by helping you create your own business model.
Think and move quickly, fail fast if you're going to fail at all, and nail that business model. Otherwise, prepare yourself for bankruptcy!