​Reasons why businesses fail – things to avoid

There are many reasons for business failure. From poor management and not following the business plan, to bad market research,  to poor marketing strategies - the list goes on. From the outside, it can be easy to spot what someone isn’t doing right, but when you’re on the inside it’s not so easy to see the mistakes being made, even when you’re the one making them. Below we look at three common business mistake to avoid that could save your business from going under.
 
1. Bad financial management
All too often, businesses find themselves running out of money. Cash flow is key for all businesses. How this happens usually falls into one of these categories:

• You are overspending
• Revenue is not coming in as you anticipated
• You failed to raise enough money when fundraising

To avoid this, make sure that your financial projections and investments are solid. Always invoice promptly and ensure that they are paid swiftly. Where possible set up automatic billing that you are in control of. Try to stick within your budget. Cut any unnecessary expenses. If you don’t need an office, work from your kitchen table for now.
 
2. Bad customer service
It’s surprising how many businesses have bad customer service. Remember that without any customers, you wouldn’t have any business. Giving good customer services doesn’t have to be hard or expensive. Listen to your customers if they complain and put it right quickly. Ensure that it doesn’t happen again. Word of mouth can spread all too quickly and it can have devastating effects on a business.
 
3. Not joining the digital revolution
It’s hard to think of anyone not being active in digital these days as it is prevalent. As a business consultant, I see all too many businesses still avoiding digital. Society spends more time than ever on their screens, be it a phone, tablet or laptop. There is no getting away from it, the digital age is here and one of the biggest mistakes that you can make is to ignore it. Now more than ever you must have an efficient website, that it is mobile and SEO friendly. You need to be active on social media and posting regularly. If this is not part of your expertise, don’t hesitate to seek advice from a professional.

Running a business is a continuous learning curve. We all make mistakes. But acting quickly and making necessary changes can determine the future of your business. Having someone to get business advice from and bounce ideas off, like a business adviser, can be incredibly helpful.

At RBSS Consulting we help start-up, small and larger businesses through their development stages. If you need external business advice give us a call today on 0333 355 1696.