According to Bloomberg, eight of 10 entrepreneurs will fail in their new business endeavors within the first 18 months. That is a whopping 80% of new businesses. The simple explanation is that these new businesses run out of money. But there is a reason that these companies are running out of money. Here are three common reasons why new businesses fail.
1.) Entrepreneurs are great at identifying an opportunity and taking advantage of that opportunity. However, many fail because they can't create a connection with their customers. No business can operate without customers because there is no other way to generate a sustainable flow of cash. Customers are the key to every businesses success. No customers mean no cash.
2.) The second common reason new businesses often fail is because they fail to distinguish themselves in the market. They fail to propose or advertise themselves as providing a unique service, product or option. This means that there is no incentive for customers to use their service and they've already fallen behind their competitors.
3.) The third common reason is that new businesses who fail did not communicate well. This is the most debilitating of characteristics among failed businesses. Communication is key in every business model. Being able to communicate your message in a clear and concise manner is important to employees, investors, and customers.
Marco Vedeo is a successful entrepreneur in Miami. He founded two real estate companies, one in Miami, and another in Monaco.
Know more about Marco Vedeo, visit https://marcovedeolavajet.wordpress.com/
2.) The second common reason new businesses often fail is because they fail to distinguish themselves in the market. They fail to propose or advertise themselves as providing a unique service, product or option. This means that there is no incentive for customers to use their service and they've already fallen behind their competitors.
3.) The third common reason is that new businesses who fail did not communicate well. This is the most debilitating of characteristics among failed businesses. Communication is key in every business model. Being able to communicate your message in a clear and concise manner is important to employees, investors, and customers.
Marco Vedeo is a successful entrepreneur in Miami. He founded two real estate companies, one in Miami, and another in Monaco.
Know more about Marco Vedeo, visit https://marcovedeolavajet.wordpress.com/
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