We often come across a million-dollar question- why do small business organizations or startups fail? Well, an array of reasons are responsible for this, and that’s exactly what we are going to discuss in this blog. According to SBA or Small Business Administration, it’s quite evident that nearly 80% of the firms survive the competition in the first year. The number drastically reduces from 45.4% to 51% after passing the five-year mark.
Several reasons such as lack of adequate planning and accounting services in Singapore leads to business failures. Let’s delve deeper into the topic for more insights and details.
1. Lack of Adequate Planning
Starting and running a business requires top-notch business planning- it’s the key to enjoying a competitive advantage among the huge crowd! Focus on these major areas listed below, and you will be able to craft a proper plan:
- Market strategy
- Market analysis
- Sales plans
- Marketing plans
- Operating plans
- Describe your services and products
- Financial projections
These are some of the crucial factors that contribute to curating a business roadmap; this is the initial stage that can’t be overlooked at all.
2. Market Demand Doesn’t Align with Your Product or Service
Your service idea or product might look like an asset to you- but does the market demand the same? Whatever you are bringing to the table, do people need them? Even if you have cutting-edge solutions in mind, the misalignment between the market and your products and services can break the business. While not all ideas get a space in this thriving market, you can stand out by following these few steps:
- Take your customer’s needs into consideration- you can conduct surveys or both wider and local scale.
- Check out your competitors and validate your idea; your goal must revolve around being better than them.
Yes, setting up a business might take time, but it’s always better to be slow and steady; you might just win the race.
3. Lacks Financial Management
One of the major reasons behind failing businesses, poor financial management often paves the way toward potential business threats. Issues such as overspending, poor budgeting, high debt and improper cash flow management results in serious consequences that prevent you from running a firm.
However, this situation can be solved by hiring accounting and bookkeeper services in Singapore. These well-versed finance professionals will leave no room for mistakes while managing your finances.
4. Ineffective Management and Leadership
Sometimes, it’s your skill sets that take the business to better levels and heights. Some business owners and entrepreneurs possess ineffective management and leadership skills, which ultimately impact the organization to a great extent. Strong leaders adhere to making impactful decisions- they know the art of delegating tasks and upgrading themselves with the ever-changing market conditions. Poor behavior, such as micromanagement and lack of communication, simply adds to the disadvantages of the overall business.
5. Weak Branding Strategies and Marketing
Let’s assume that your product and service have an amazing scope in the market- but do you think that’s enough to be successful? Until and unless you are focusing on proper branding and marketing, you might experience business failure at any time. Consider these three steps to buckle up in terms of branding:
- A clear value proposition is of utmost importance
- Be consistent in branding and messaging
- Choose suitable marketing channels to promote your business
All you need to do is be strategic with every movement, this grand design will help you achieve your goal in the long run. In case your plan doesn’t work, be patient enough to start from scratch.
6. Unique Value Proposition Not Considered
A Unique Value Proposition is a communication tool that speaks volumes about everything your business has to offer. It highlights the unique benefits, tailored solutions for different problems, amazing features, etc. Do you know what sets you apart from other competitors? It’s your UVP that serves the purpose. In order to write a detail-oriented UVP, you need to follow these few points:
- Identify who your target audience is.
- Perform a competitor analysis.
- Prepare a list of your benefits and unique features.
- Focus on customer pain points and how your products and services can solve the issue.
- Be simple while delivering your message.
Remember, patience is the key to climbing the ladder of success- rushing through the process will take you nowhere.
7. Overlooking Legal and Regulatory Landscapes
It’s true to say that legal and regulatory landscapes are quite complicated; they constantly keep on changing. If you don’t stay updated with the recent alterations, chances are high that your business will get exposed to lawsuits, fines or business closure. On the other hand, expecting a business owner to know everything regarding tax laws can be unfair- combat this problem by getting in touch with accounting services in Singapore. You can also invest in legal advice and ensure to adhere to laws and regulations.
8. Improper Digital Marketing
Improper digital marketing and the absence of an online presence will make it difficult for customers to trust your products and services. Since the internet has brought everything right to our fingertips, it’s easy to judge a brand based on its digital footprint. Ensure to build a strong website and use social media platforms to promote your launches and products. It also helps you to engage with customers and receive genuine and constructive feedback.
Hire Our Accounting Services and Enjoy the Best Results
We didn’t bring this blog to your notice to demotivate you- instead, we want you to buckle up and refrain from making such mistakes. Establishing a new business takes a lot of guts; focus on the main areas, and you will definitely reach heights and hit major milestones. In this present scenario, more and more businesses are boarding accounting services for managing finances. Statistics clearly state that the accounting industry will reach $735.94 billion in 2025 at a CAGR of 6%. So, what are you waiting for? Let us know how we can help- from bookkeeping for startups to full-fledged accounting services; we at Growwth Partners offer it all!
