4 Reasons Why Businesses Can Fail

There's a fierce wave of potential for failure in business. Half of all businesses won't make it to the five-year mark never mind the twenty-year mark or more. Sears is a reminder to all business leaders of how even the greatest companies wither.

But why? What can we learn from the colossal amount of failure with small business that we can apply to our own business aspirations?

In my 20 plus years as a serial (yes - hate that word too) entrepreneur, and through my exposure to thousands of entrepreneurs via my company XTRAcredits I have seen plenty.

And yes, the primary reason businesses fail is they simply run out of cold hard 'cash.' But trust me -- the cracks in the foundation start well before the brutal day of financial collapse.

I speak to business owners all the time. I always tell them they need to think of their business as a hotel. Without a solid foundation, everything above the basement will fall apart eventually. It doesn’t matter how great your products and services are in all the different levels of the hotel if your foundation is crumbling.

Businesses that Go Slow, taking the time to invest and build the infrastructure that meets their needs today and the future, will best position themselves for success. 

Here are 4 important elements for success so you won't fail:

PROCESS for Productivity and Scalability

A talent based business and a systems based business. Flexibility can be the enemy of growth. It can be hard to admit, but “managing the operations by hands-on involvement of founders will eventually limit growth”.

When you have clear, organized systems and rules that staff have to follow you enable your ability to scale. When I created a system at XTRAcredits to manage the continuing education credit programs for multiple clients it was a bit of a hassle initially, but it enabled my company to run much more smoothly and definitely more profitable.

When you create systems you also create better more effective client experiences and you add value to your bottom line.

BUILD something people want.

Too many people build products for themselves because they think they have identified a problem and have the only way to solve it. The problem is what they think is the problem is not necessarily their target clients problem.

I’ve build two software applications. The first one was built on a problem that I believed small businesses needed solving. I shut myself away to spend months-- building it. Unfortunately, I missed the mark.  

The second application and system I built at XTRAcredits, solves 3 different problems for 3 different types of client avatars. This time before I built the system, I verified there was a problem to solve in the market. I found three different problems that needed to be solved in the continuing education market and then I built the XTRAcredits system to solve them.

So ask yourself is there a problem in your market you can solve? Is anyone solving that problem? Then focus on the development of the solution.

PERSISTENCE

SIMPLY PUT, some people just give up too easily.

Persistence is a vital characteristic of successful entrepreneurs. Driven by an indomitable spirit, successful entrepreneurs never give up on their dreams of building a viable business.

Your business won't always be a source of happiness or stability. But entrepreneurs who show persistence through difficulty may be more likely

FOLLOW UP

Once you've got an inquiry from a potential customer, you have to stay in contact with them.

So many professionals and business owners miss this and leave so much money on the table. They get hundreds of leads online, phone inquiries or street walk-ins, then let them leave without leaving any follow up details. It’s Crazy to me.

Be your best,

Lisa

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Lisa is the founder of XTRAcredits Group Inc. She is relentlessly optimistic, entrepreneurial, and future-focused. She encourages contrarian thinking and rapid experimentation.

Lisa has worked with personal brands and companies such as Grant Cardone, Gordon Tredgold, Tom Hopkins, Jim Cathcart, FrippVT, International Coaching Federation, Dr. Tony Alessandra, Assessments24x7, Society of Human Resource Professionals, and many more. Find out more about Lisa by clicking here.

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