Avoid failure: seek out fresh perspective and experienced navigational support to help your business GROW.
I read an article that resonated with me: 11 Reasons Why Small Businesses Fail. Here’s a summary with my observations:
- Empty Pockets– #1 reason small businesses fail. They may have GREAT products and people but cash flow is a problem and they fail to fix the problem quickly enough; they think it will go away, simply if they “give it time”.
- Overconfidence– Failing to get outside perspective, confirmation, or challenge
- Poor pricing strategy– I recently read McKinsey & Co research concluding that “80-90% of all pricing mistakes come from companies pricing too low”. So true!
- Dueling partners – Too much conflict can destroy company morale (and cause confusion)
- Burnout– I read a study that the #1 concern of small biz owners is not enough time, followed closely by “having to do too much myself”. Extra hands can relieve the burden.
- Stale marketing message – How often do you companies fail to listen to customers and potential customers to see what THEY think of them (and their competitors)?
- Failure to join the digital revolution– I would add: “being clueless about WHICH digital approach to take”
- Cybertheft
- Underestimating the competition…or failing to study their vulnerabilities, to identify how to win against challenging foes
- Overreliance on one customer– I have seen this many times; often for convenience, comfort, or fear
- Disgruntled employees– One study showed 70% of workers are NOT engaged at work, or are actively disengaged to the point of undermining co-workers. This is sad, but true.
Denali Growth Partners helps clients navigate their path to growth…and avoid the pitfalls and roadblocks that can cause companies to fail.
