When businesses close down, there’s a lot of shame and blame.
(I know firsthand because I was once there myself many years ago…)
But here’s the thing -
You can blame the market, you can blame your employees, your competition, that mercury was in retrograde, whatever you like…
But the truth is there are a few very fundamental reasons businesses actually die.
Here are my top 5.
Reason 1: Overthinking
Most people overthink, and therefore they don’t act.
Instead, they over-analyse themselves into a corner, instead of listening to their gut instincts.
But ultimately, you're in charge of your business.
You're in charge of your life!
So you also need to be in charge of listening to your inner guidance.
No one knows you better than you, better trust your heart.
That employee you know deep down is the wrong fit?
That nagging feeling your business is going in a direction you don’t want?
That big change you keep meaning to make, but keep talking yourself out of?
Start listening to your inner voice. Then act on what it’s trying to tell you!
Reason 2: Not having balance
I’m talking about an imbalance between your energetic being, and your outer game (your actions).
You can say you’re committed to growing your business, but if your actions don't demonstrate that, there’s a misalignment.
The cogs in your wheel aren’t matching up.
So you’re going nowhere (and feeling incredibly uncomfortable within yourself too).
You've got to have a balance between your inner game (what's going on internally) and your outer game, in terms of your actions and what you're moving towards.
Reason 3: Changing strategy
Too often I see business owners switching between ‘quick fix’ strategies. They bounce around so often they never actually see a single strategy through to the end.
And they wonder why things ‘just aren’t working’... believing they have tried ‘every strategy’.
Dipping your feet into a dozen strategies won’t get you anywhere.
Seeing ONE strategy through, will.
If you put something into practice, and you don't think it's working… before giving up, ask yourself:
“Is this not working because it is actually wrong for the business, or have I simply not invested enough time and commitment to making it work?”
Reason 4: Having a low-value or ‘me too’ offer
Are you offering something to your market that is already out there?
If so, it’s going to be harder to get traction. Not impossible, but your marketing will take longer, and need more testing and refining before things start to click.
Look at mortgage brokers or financial planners for example.
There’s a lot of them out there. So advertising to that market is more expensive unless they can find a way to package their offer in a different way that gives them a distinct advantage.
Conversely, Bitcoin trading Facebook campaigns took off like rockets last year, because they were hot offers in a hot marketplace.
Whereas financial planning or mortgage broking is more difficult because the marketplace is flooded.
So if you've got a low-value offer or something quite common, it’s going to take you a little bit of time to really understand the psychology of what your clients want.
Reason 5: Failure to read the market and innovate
If you're doing what you've always done, you’ll get what you've always got.
We’re in a beautiful time in business - it’s never been easier to connect with our market.
Yet a lot of people are doing what they've always done, and what the market has always done.
#truthbomb: If you're not constantly innovating, you’re going to get left behind.
Just look at Melbourne’s Taxi industry that’s currently being crippled by Uber.
People hated how long it took to get a Taxi.
You can get an Uber in minutes.
Taxi drivers had stinky cars and took phone calls when driving.
Uber holds drivers accountable with a rating system.
Taxi drivers had a reputation for running up fees for ‘easy target’ passengers.
Uber gives you the cost of your ride up-front.
See what I’m getting at?
If you don’t move with the market, it will move on without you.
That’s it from me for now… did any of my Top 5 biz killers resonate with you?
Comment below and let me know!