Why do Businesses Fail Within The First Three Years?

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WELCOME TO
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Why do Businesses Fail Within The First Three
Years?
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All businesses are associated with risks.
Considering the number of odds involved, every
good entrepreneur would want to know the
probability of success before investing
everything into the endeavor. This may or may not
go as expected. Knowing the reasonable number of
odds, it gets difficult to determine all the
factors involved in the failure. Before we jump
onto the major reasons that are the main culprit
behind the downfall of businesses, let us see
the factors that actually affect the businesses.
Unable to match the dynamic nature, not able to
meet the perpetual changes in the market
demands, and failing to cope up with the rapid
transformation in the ways of doing business are
some of the reasons behind the non-performance of
businesses. Hence they fail within the first
three years. As per the figures by the Bureau of
Labor Statistics, reported by Fundera, around
20 small businesses fail within the first year.
About 30 businesses fail by the end of second
year and by the time businesses reach the fifth
year, about half of them succumb to the
failure. The above-mentioned statistics are
testament to the fact that businesses fail in
their initial year itself. Besides, there are
other major factors too that are responsible for
the collapse of the businesses
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Seeking perfection
Almost every entrepreneur starts a business with
a thought to deliver nothing but perfection.
Exactly, this is where most of the business
owners go wrong. This is because, when they work
to get perfect in a task, they tend to set
unrealistic goals and put a lot of pressure
which ultimately leads to inefficiency and the
downfall. They set high standards for themselves
which gets difficult to achieve in the
beginning. Eventually, this leads to
procrastination and the ideas fail to reach the
market.
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Wanting to get it all in one shot
There is no denying the fact that a business
owner must have knowledge of every aspect of his
work. But if entrepreneurs are unable to let go
and delegate the tasks, there are high chances
for them to miss out on working on the key
objectives. If you are quite a fresher, you
might not be able to afford a team. But if this
continues for a long time, you might even lose
early on in the game. Trying to do it all by
yourself may turn out to be the biggest block in
gaining success.
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Money is the only driving force
Probably, most of the entrepreneurs start with
this thought Being an owner will help them
make more money. This is considerably true
because it is believed that businesses offer
uncapped possibilities. Even though it might be
correct, this cannot be denied that operating a
business is hard. Also, vigorous efforts and
showing up on a regular basis are required to get
better results. Even this approach may not
guarantee you the desired results all the time.
But, if money will only be the driving force, it
might get difficult to stay committed and build
an empire.
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A Complicated Business Plan
Setting up ambiguous and vague plans leads to
poor management. Young entrepreneurs with less
experience and little knowledge often end up
creating complicated business plans. Such poorly
drafted plans take them nowhere but set complex
benchmarks which gets difficult to achieve.
Having a strong business model would act as a
backbone. Even if you go astray anytime while
running the business, the plan would bring you
back on track and help you reach your goal. So,
having a plan with clear day-to-day goals would
do the job better for the business owners.
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Poor Communication Strategy
Good communication forms the foundation of all
businesses. Without open communication,
businesses fail to deliver the message in a clear
manner. Just communicating is not enough, having
it in a two-way manner is important. But, wait a
minute. Do you know that this is still not enough
to take your business to the desired heights? To
keep up the pace with the rest of the world, it
is essential to create a strong online presence
of the business. This is possible only by
adopting the best digital marketing
practices. If you are a business entrepreneur and
are unable to reach wider audience, then you
certainly need to market your business online to
target wider audience. You can do this by hiring
the services of the Big Unit, the best digital
marketing agency in Melbourne.
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Wrong utilization of the investments
Under utilization or over utilization of funds in
the primary stage of the business can prove to
be one of the biggest mistakes. After businesses
invest hefty amounts, the owners are left with
no backup to rise, after they fall. It is rightly
said, NO RISK, NO GAIN, but remember blind
risks only show you a pitfall. On the other hand,
taking calculative risks can save your business
from setbacks. Besides the above-mentioned
factors, the biggest that the majority of
entrepreneurs ignore is marketing their business
online. Looking into the changing patterns, it
is important for businesses to jump onto the
ongoing digital marketing trend, and explore the
untapped opportunities. So, if you are looking
forward to taking your business to heights, then
adopt unique digital marketing strategies.
Contact the Big Unit, the best digital marketing
agency in Australia and get the work started.
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sinesses-fail-within-the-first- three-years/
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