Avoid Becoming Another Failing New Business Statistic - CareerAlley

Avoid Becoming Another Failing New Business Statistic - CareerAlley We may receive compensation when you click on links to products from our partners. Did you know that around 80% of new businesses fail?On top of that, this statistic is drawn from only the first 18 months a business opens.Running out of cash is the primary reason, but we will delve much deeper into the reasons to help prevent you from becoming another statistic and help you thrive in this economy. Mainly, dont be just another business, find a way tostand out from the rest. Finding out your strengths and weaknesses as well as other companies within your market place will help you seek those opportunities. Tweet This Business Model Many steps need to be taken including making thebuilding ready for safe work conditions, all the way to planning, marketing, budgeting, and hiring the right staff. Creating the right business model is where it all begins.This requires anywhere from understanding yourwell-defined target marketall the way to market research and more. Without a good business model, this may not last long. Make sure you understand the target markets buying habits and behavior as well. Starting a business from scratch isnt the only way to build an empire and establish a long-term financial investment. Buying an existing business comes with many advantages and is often considered a less risky investment if youve done your research. How to Value a Business Your average business model would most likely include key partners, key activities, key resources, value propositions, relationships, channels, customer segments, cost structure, and revenue streams. The cost structure is necessary when compared to your revenue streams, even though it may take an average oftwo to three years to make a profit, you need to be mindful of what youre spending and make sure your revenue can generate in the future. With so many new businesses popping up and many more entrepreneurs out there, you will need a strong value proposition to show what you can bring thats unique to the customer. If youre going into business with a partner, it is important to come up with this model together so you are on the same page and have a full understanding of what is expected, a timeline could help with this as well. You need to keep the location of your business in mind too. Make sure you dont put your business across the street from an established company that has the same services or product. source Customer First Knowing your target market is very important. You wont sell much if you are targeting consumers that dont fit your demographics, psychographics, and geographic. Putting money into marketing is vital for any company, dont waste dollars before you do the research. You shouldnt try to sell roller blades to an eighty-year-old or meat to a vegan. Study your market and learn the way they talk and the places they hang out on social media and in public.There are ways that you can specifically target your audience using social media campaigns. You can pick anything from age, gender, location (even down to the city), income, and more.If you truly learn who your audience is, you can put yourself in their shoes and think about what would attract you to your business. SWOT Analysis Finding out your internal and external analysis is necessary. SWOT stands for strengths, weaknesses, opportunities, and threats that face your business. You need to look at any opportunities in the market place with the threats in mind.For example, if youre selling the same item or service as an established rival company, find a way to attract the customer to yours instead. If you can cut production costsor even look into promotional ideas to draw them in. Photo by Victor Freitas on Unsplash Finding out your strengths and weaknesses as well as other companies within your market place will help you seek those opportunities. You can find out why the rival company is successful in their strengths and plan around that, or you could understand their weaknesses and expand on how you can use that to your advantage. Knowing the other businesses in your direct market place is a big key to your success. There are many reasons why so many new businesses fail, but if you follow these suggestions and really do your research, you have a much better chance of success. What's next? Ready to take action? Choose the right tools to help you build your career. Looking for related topics? Find out how to identify and land your dream job. Subscribe and make meaningful progress on your career. It’s about time you focused on your career. Get Educated Contact Us Advertise Copyright 2020 CareerAlley. All Rights Reserved. Privacy Policy + Disclosure home popular resources subscribe search