Why do 95% of businesses fail in their first year?
I was recently asked this, and it certainly got me thinking.
The answer of course is neither simple or universal. All businesses are unique, and failure can occur for a multitude of different reasons.
So in providing an answer, I found myself re-framing the question.
“What one piece of advice would I offer to help a failing business?”
And here it is – Research, research, research.
Research is paramount to formulating and upholding a solid business plan. Not to mention, the more knowledge you have, the more resilient you will be in the face of inevitable change.
As well as conducting field and market research, never forget to learn from the people closest to you.
Your staff and your customers are the individuals who can truly make a difference to your business.
Get your staff involved in team meetings and brainstorming sessions. Listen to their ideas and encourage an environment of ‘fearless feedback’ to stimulate the exchange of ideas.
With customers, actively seek critique of your goods or services. If you can consistently meet consumer demands without heavily impacting your outgoings, then your chances of staying afloat will increase dramatically.
What one piece of advice would you give to a business in need?
