Image: Marco Bianchetti on Unsplash

Believe it or not, business failure is much more common than you think!

In fact, if we were to take a good look at some long-term statistics, we’d find out that roughly 33% of new businesses end up experiencing success – while more than 20% fail –  some of them even before fully opening their doors for business in their first year.

With such rather grim statistics, most of us would expect those businesses to have been very poorly managed, right? Well, that’s not the case – not entirely. Even though most of them had a rock-solid initial plan, they also failed to pick up the pace while gaining traction.

For example, some of them didn’t approach social media, online exposure, or even better marketing strategies, such as the use of guest posting services. As such, in the following lines, we’ll tell you what you shouldn’t do if you want your small business to go big!

  1. Good Business – Wrong Reason

A startup, by extended definition, is a type of business that you personally grow and develop from almost nothing. In fact, if you don’t have any resources, you must rely on investors who will later own a big part of your company.

However, what most small business owners don’t understand is that one has to approach a startup – or a business – with certain goals and reasons in mind, other than to make a lot of money.

A business is successfully built on passion, determination, power of will, patience, as well as on failure.

  • Lack of Market Demand

Even if you have the right reason and, via your business, you’ll do something that you love, and that you’re passionate about, you still shouldn’t be diving headfirst.

It’s always better if you research your market first and make sure that your startup or business will solve an existing market problem. You may believe that your product or service is appealing enough to drive sales, but there may be no actual demand for it on the market.

The study of market demand is where one should put their dreams aside and consider their startup – overall!

  • Inexperienced Startup Team

Most of the time, great minds come together and have an amazing idea that will not only rock the market but may also put their company right at the top!

Still – even if your idea is good enough and the rest of your team understands your plans, you won’t get too far if the team doesn’t have enough experience in terms of managing/ handling a business.

In short, your team should also be able to launch a product online by itself and not only come up with the idea for it!

  • Lack of Proper Planning

As mentioned above, a lot of startup teams/ owners have a habit of diving headfirst into the market, without a proper marketing strategy or planning.

Basically, most of them get too excited with their new achievement that they forget about strategic and methodical planning. On top of that, they also fail to look into the main components of a business plan – namely, business description, goals, vision, market analysis, workforce needs, problems and solutions, finances, competition analysis, and so on.

Startups fail mainly because the team’s eyes are only set on a singular final goal, which is often the wrong one.

  • Poor or No (Online) Marketing

Even though no marketing sounds a bit exaggerated, there have been a lot of businesses that entered the market with no actual marketing, hoping to succeed.

Some succeeded – but they either had a big name behind them or a really good product/ service. Naturally, you don’t want to take such chances with a startup!

As such, it is of the utmost importance that you target the right audience and try to get the attention of as many customers as possible so that they are converted into leads. As stated at the beginning of this article, something as simple as guest posting – sponsored or not – can build the online presence of your business.

From there on, all you need is a solid marketing plan to back up your online brand/ presence and you’re set!

  • Lack of Website/ Social Media Presence

We mentioned online presence earlier, but we didn’t tackle social media presence. Of course, you can rely on a couple of guest posts on various websites to present your business to potential customers, but you’ll definitely need a platform or at least a social media account to interact with them!

A couple of years ago, big brands and companies were still refusing to board the social media train, considering that it’s better to remain anchored in the real world – as it is more serious.

Nowadays, we have some of the biggest businesses in the world present on social media, making jokes, and whatnot.

So, while you do your best to market your startup, you should also have a place where people can go to find out more about you, your goals, and your products and services.

  • Lack of Search Engine Optimization

Last but not least, it’s worth mentioning that you cannot possibly have a successful online startup without proper SEO – short for Search Engine Optimization.

No matter what product you sell or service you market, all your online platforms and social media accounts should be infused with pure SEO.

Without SEO, a startup will not rank high in search engine results and, therefore, will not enjoy any organic traffic. Therefore, no matter how busy the founder team of a startup is, they should take their time to solve the SEO issues, or else their website will sink through random Google searches.

Final Words: Why Do Small Businesses Fail Online?

Overall, as you can see, small businesses usually fail online because they don’t consider some of the things they should be focusing on – or some of the skills and knowledge the founding team should obtain.

As such, when they realize they’ve missed some things in the plan to make their business successful, it’s already too late and the startup’s fate is doomed. This is why, before thinking about a startup, one should consider drafting a comprehensive business plan that they’d also discuss with their team, as well as with business analysts!

Basically, when a team receives their first batch of funds and is given the green light to start building their business, they should already know how to tackle some of its most important problems and how to learn from any possible failures!

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