5 Reasons Businesses Fail

Updated: Sep 11, 2020

The 2020 Pandemic has created a shift in the way we view our lives and careers.

People are seeing the value in spending time doing things they love. I've met several men and women that are following their passions and have started their own businesses.

Maybe you're among the group of people whom want to run a business, a blog, a podcast or a brand, you just haven't started yet. Before starting anything in life, it's important to know the pitfalls, right?

Today I'm sharing five common mistakes that negatively impact small businesses, and how to avoid them:

1.) Poorly managing cash flow

According to the Association of Chartered Certified Accountants, 82% of businesses fail for this very reason. Let's face it, most millennials are not good with their money. Ask yourself on a scale of "I'm great with my money" to "I relate with Charlotte from Pride & Prejudice," how good are you at managing your finances? Don't worry we've all been there. It's not as if managing a budget, or filing taxes was standard curriculum in public school.

To avoid becoming another statistic, you need to keep track of where money is coming and where its going. Quickbooks, Xero and Excel are tools that can help simplify this process, until you can afford an accountant to handle it for you.

2.) Handling too many tasks

Even if you know how to handle all of the tasks, you certainly do not have the time to execute all of them. Smart business owners delegate tasks to people who not only have the skill but the passion for it. Recently I spoke to a colleague of mine, whom knows how to manage an aspect of her business but isn't passionate about it. Fortunately, she knows exactly who is! Just because you can, does not always mean you should! Taking on too many tasks is setting yourself up for burnout and disappointment.

3.) Impatience

Often people don't see results because they lacked the patience to put in the time, or consistency. However the three are closely related. Consistency + time = results. I once ran across a quote that said "don't be upset by the results from the work you didn't do." Take a look at your goals, you might find they are too big and thus discouraging to you. First set attainable and reasonable business goals, that you can achieve in a timely manner. Create a plan, stay consistent, and don't stop putting in the work. Nothing good comes easy, and nothing that comes easy is good!

4.) Not being adaptable

It is said that being adaptable is made up of two key components: attitude and flexibility. Your attitude dictates whether or not you will have the flexibility to adapt. Some people love change, while other's crave a constant routine. As a business owner you are the leader, and must think in the long-term. Being resistant to change whether its marketing trends, social media, or client feedback could really affect you negatively. The business will ultimately fall behind it's competition, and disconnect with it's audience. So remember it's important to stay adaptable, especially when you are trying to maintain an online presence!

5.) Poor online presence

Online presence allows you to achieve many things, all with the same goal of driving sales. You can easily build your brand, form relationships with your target audience, gain credibility and attract more customers online.

Many of you think Facebook is only for your parents and it shows.

What do I mean by that? There are 2.45 billion monthly active users on Facebook, ranking it as the most used social platform. 84% of consumers will buy from a brand they follow on a social media platform over a competitor, and 62% of consumers use Facebook to research a small business.

Some business owners stay away from social media because its too time consuming. I hear you, it absolutely can be. If you're hands on and willing to run your biz and manage your platforms, there are many tools that can help.

Stay tuned for our next blog post, we'll be highlighting some of our favorite tools!

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