20% of businesses fail in the first year, and almost 50% of startups hit rough patches within five years. What is more shocking is that these figures have been consistent over the years! So what goes wrong with businesses, and why is the failure rate so astonishingly high.
Dr. Chris Cole is the owner of 9+ business which dabbles in Capital markets, crypto, and education. He is the founder of BWO Academy wherein, he teaches ways to create generational wealth. The education platform aims to break down complex financial terms into easily digestible knowledge pieces. The course intends to help people who are willing to take control of their life and take action.
A failed business is directly related to the decision an entrepreneur makes or does not make. Dr.Chris Cole divulges some of the common mistakes that entrepreneurs make that lead to business failure.
1. Choosing Your Product Over Customer
A great product becomes great because of what it offers to the customer. Most entrepreneurs have the wrong mindset about product creation. They tend to think that their product has to be groundbreaking or out of the box. However, the truth is a good product should either solve a problem or aid its customer nothing more than that. Market analysis should be the basis of product creation. So many entrepreneurs create a product and then try to generate demand for it. It is one of the primary causes of business failure.
2. Maintaining Funds
Entrepreneurs who are unable to manage the cash flow of their organization will eventually contribute to its closure. Entrepreneurs have to find a balance while spending the funds of the business. They can’t be very thrifty or careless with money. They should not shy away from spending on improving the quality of products and retaining skilled people. It’s always good to hire an expert to help them out with the procedure.
Businesses are as efficient as the people they hire. Entrepreneurs need to hire people who have different skills than theirs, so the organization is well-rounded. As a new business, funds are tight, but that is no reason to be thrifty in hiring. Entrepreneurs who save in hiring, end up with unskilled staff that doesn’t contribute much to the organization. So they do much more harm to the organization in the longer run.
Not marketing their product enough is also one of the causes of slow growth. Businesses believe that a good product can and will market itself, which is partially true. However, Entrepreneurs need to give their product a push for a consistent stream of income. They should actively promote their product offline and online. Online marketing has made marketing easier and costs effective. Entrepreneurs should use the power of online marketing to make their products reach the masses.
Dr. Chris Cole shares more of his wisdom through his course. He has designed the modules in a way that gives the maximum benefit to the student. So if you are on the fence about starting your investing journey, you can join BWO Academy. Find the details here.