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Why do Businesses Fail Within The First Three Years?

Why do Businesses Fail Within The First Three Years?

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. Are you searching for the best digital marketing agency? So, Visit our website and get more information regarding this topic as well. Read more: https://thebigunit.com.au/blog/why-do-businesses-fail-within-the-first-three-years/

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The Big Unit

October 19, 2021
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  1. WELCOME TO

  2. Why do Businesses Fail Within The First Three Years?

  3. 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:
  4. 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.
  5. 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.
  6. 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.
  7. 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.
  8. 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.
  9. 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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