Reasons why Businesses Fail

There are many reasons why businesses fail and here are some of them.

No Proper Planning
Having a business plan will give you an insight if the business will succeed or fail and will give you an advantage in planning for a proper strategy. If you are having a hard time creating a business plan then this business may see failure even before seeing a glimpse of success.

Lack of Market Knowledge
Having knowledge on your market will give you an insight on what will sell to them and how to sell it. This is also necessary in preparing for the 4 P’s of marketing. Knowing your target market will give you an idea how much to price, where to place, how to position and what sort of promotion will they respond to.

Non-profitable Business
IF at first you have prepared a business plan you will have an idea if the business is profitable or not.

Being Stagnant when there are Changes
Being able to react quickly on changes on your competition on your target market will ensure that your business is up to date and if not it will be behind on the fast-paced environment of industry.

Being Everything for Everyone.
Having a niche market will ensure that your will have a loyal and fanatic customers. Being everything for everyone will give you a very thin line on focusing your marketing budget and communication efforts.

Dependence on a Single Customer.
It’s not a bad business practice in obtaining a niche market but sometimes there are changes. After you have established your share on your niche market the business must not be complacent instead try to develop new product or service that will cater to new market while maintaining your good relationship with your current customer.

Published in: on December 9, 2008 at 5:49 am  Leave a Comment  
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Marketing your business

163148_the_marketing_eraAfter launching your business you still have to market it in order for the public to know your services and that your business exist. There are many ways to market your business traditional and non-traditional marketing schemes have been practiced for many years and it will be a combination of the four P’s (Product, Price, Placement and Promotion) of marketing that will ensure your success. Advertising falls under promotion.

Here are the traditional forms of advertising.
Television advertising – This form will reach more number of people however it has a lot of loss in terms of targeting the right market. This form also is the most expensive of all.

Radio Advertising – This will reach a broader number of people but the same as a television ad it is more costly and has a lot of loss in target market reach.

Print Advertising – This one can be targeted to your niche market but you have to pick the right magazine for this one. A lot of company uses this because the ad is permanent on the issue unlike in radio and tv wherein the slot given will be only for a few seconds.

Brochures or Flyers – This option is inexpensive and you will have more chance to explain your product or service.

Published in: on December 3, 2008 at 4:32 am  Leave a Comment  
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