Why do 75% of businesses fail within 3 years?

According to financial software company Bloomberg, 75% of new businesses are fail in the first three years of life. But why?

What can we learn from this colossal number of failures – especially the small ones – for our own entrepreneurial aspirations?

According to Michael Ames, author of the book Small business administrationsome of those reasons are lack of experience, insufficient start-up capital, competition or poor commodity or product management.

And while many of these aspects can lead to failure, I believe from my experience as an entrepreneur that there are many more.

I’m a strong advocate that lack of experience shouldn’t be a determining factor open a business. Even the most successful entrepreneurs were once beginners with no experience whatsoever.

And competition isn’t usually the specific reason for failure either, because when there’s competition, it shows that there’s a demand for the product or service, which is a pretty good thing. So I think there is a deeper problem and in which there is 4 reasons main for it.

Obligation

How committed are you to your company? I mean really and objectively. You could answer this question by saying if you could, you would marry your company today. But before you answer that, I want to ask you one more thing.

Do you usually find yourself or see yourself in a situation like…

• Pivot and constantly change your business model
• Trying new methods regularly instead of completing an idea or task
• Or do you find yourself unable to do the same as others who are successful in your industry?

If you believe in your business idea more than anything and are genuinely committed to it, you shouldn’t suffer from any of the above.

You stay on track by avoiding constantly switching to new ideas and You will be willing to do what you cannot. When you face a challenge, the true entrepreneur in you will step up and keep going!

If you’re suffering because every day you see your business failing little by little, look inside yourself and ask yourself if you’re really doing everything (and working) to save it, or if you’re doing it for fear of avoiding what is necessary.

Distinction

As I told you before, according to Michael Ames, competition is another reason for failure, and in my personal opinion, competition shows that there is real demand for your product or service.

The question is however if you can differentiate yourself from this competition.

Don’t try to differentiate yourself based on price; That way you just become a commodity where as soon as a second company enters your niche, it does so at even lower prices and you’re out.

You need to focus in a direction where you are aware that you will do whatever it takes to differentiate yourself from others in your market.

For example, don’t say you’re just a cleaning company, a chiropractor, or a fitness trainer: there are plenty of others out there claiming to do exactly the same thing as you. So be unique and different!

Lack of marketing strategy

Many entrepreneurs start their projects with great enthusiasm, measuring to the millimeter how they are going to do this or that, analyzing all possible scenarios… But most lack a marketing strategy that will help them succeed.

And it is already known that with any project, especially if it is a company, You cannot pray and wait for results. You have to act and have a plan.

That’s why you need to work to create a whole system to grow a business successfully. And that means making an effort to attract customers (or drive traffic if it’s an online business).

But that’s only a third of the work, because you’ll need it too transform them into potential customers and build relationships with them so they can be your own advertisers through word of mouth.

Marketing isn’t extremely difficult, but you must put effort into developing all the different marketing strategies that are available to you in order to achieve complete success for your business.

prioritization

Focusing on your priorities is why most businesses thrive compared to those that don’t.

If you ask me why businesses fail, I’ll tell you it’s because many owners work hard at their business but don’t do it wisely.

Do you find yourself striving every day to move your business forward, but not getting the results you want? Do you focus 80% (or more) of your time on income-generating tasks?

Those who are successful in business are the ones who Know their priorities and focus on them. So keep a close eye on your activities and make sure you are not only busy but also productive.

Finally…

If you’re wondering why your business is dropping a little more every day, make sure that:

• you are focused revenue generating priorities and not just being busy with something.
• You have a good marketing plan for your business.
• You show your uniqueness originality rather than simply blending in with the competition.

And finally, that you are fully committed and do not hesitate to do whatever it takes to be successful.