 Running a business isn't one of the most straightforward tasks, or a career a person can handle or manage. It takes a lot of hard work, skilled knowledge, and training, perseverance, self-discipline, and improvement in managing a business successfully. So, even though startup life might look glamorous, it isn't so. Small business owners struggle through so much trying to run their businesses on their own. According to statistics published in 2019 by Small Business Administration, SBA, about 20% of business startups fail in the first year. Nearly half succumb to business failure within five years. By year 10, only about 33% survive. The truth about business is that it is passion, planning, and funding combined. No one factor can stand on its own. So, until the three factors are well balanced, then business failure is almost inevitable. Because of the broad scope of businesses, a small business owner who tries to handle all the activities involved in the successful management of a company might eventually ruin the business, unintentionally, of course. So, what factors are responsible for the failure of a business? Well, in this video, I'll share with you 10 reasons why people fail in business. If you're new here, consider subscribing so that you don't miss out on exciting videos like this. 1. Failure to deliver real value When it comes to business success, one of the essential ingredients required is value provision. At the heart of every business is value. The world's most successful companies deliver the most value. Have you ever heard of the business phrase, on the promise but over deliver? Well, it's more than just a slogan to live by as a business owner. You should always find ways to over deliver, no matter the situation. A company fails to succeed when it begins to under deliver. Most business owners get too excited about earning the reward that comes with providing the value that they end up under delivering. The implication of this is that you will begin to lose customers and sales in return. Always remember that it is about customers' needs first. If you are not offering them what they need, why should they come to buy from you? On the other hand, when you provide real value and offer mind-blowing services to people, it will create the right kind of boss for your business and, in return, increase sales, providing real value for your customers might cost you more at the outset, but it will pay off in the end. 2. Starting the business for the wrong reasons. People start businesses for different reasons. However, starting on the wrong note or with the wrong intentions can lead to the company's failure. For instance, because you have a passion for something, isn't enough reason to start a business. If the product or service you are about to create doesn't have any real value. No matter how hard you work to produce the best, you might never build a successful business. Also, thinking that if you have your business will provide you with more time to spend with your family members isn't a good idea either. On the other hand, some people think that the best way to enjoy their career is to work for themselves, not others. These are not good reasons to start a business, because they can lead to the company's failure. 3. Failure to connect with the target audience. You probably had a particular set of people in mind when you started the business, created that product or service, however, if you are unable to reach and connect with them. Then it becomes pointless, because the chances are that the business will fail. Successful business owners know what their potential customers want. They know how best to help them achieve that goal, which leads to their success. See, your customers have pain points, and as a business owner, you should be able to identify and come up with ways that your company can help meet that need. It provides satisfaction and joy to know that you are looking out for them and helping them achieve their need. Now, that's what it means to connect with your target audience. 4. The wrong location. A good business location in the right community is essential for your company's success. If your target customers don't reside or commute along the route, then it's a waste of time and resources on your path. You are not there to make people fall in love with your business or accept your product and services when they don't need it. Instead, your startup is there to provide people with a solution to their needs. Let me tell you a story. There was an entrepreneur who had a coffee shop in the local area. His coffees are nice and affordable. He relates very well to his customers, but over the years, his coffee shop was not growing and he could hardly maintain the place. So he decided to sell the shop. Another 29-year-old entrepreneur with enough capital felt he could make the coffee shop profitable by injecting cash into the business and making it classier. He also could not make the coffee business profitable. Why? Because of the business location. The bottom line is that you cannot start a business where the service isn't required. No matter how classy you make it feel or look, people will not patronize you if they aren't interested. 5. Lack of personal growth. Growth involves reaching out for more creative and inspiring business resources. It means attending seminars, reading books, taking courses, networking and meeting new people and other professionals. You see, it's like this. The more you know about your industry, the more skills you'll develop. Every term success you'll earn. No one gets ahead in life without building themselves with new knowledge. However, if you think that you've got the best strategy ever, that you believe is the only pathway to consistent success, success might be nothing but a wish. 6. Failure to create an effective sales funnel. Yes, the goal of every business owner is to offer real value to their potential customers, but they also intend to make some money while at it. It's called value for value. To do this, however, it is vital to create a sales funnel. What strategies do you want to use to market your products and your brand? How do you intend to sell? How do you want to make more sales? How do you want to reach your target audience and to get them to notice your brand? All this should be covered in your sales strategies. Your sales funnel should create relationship with your consumer, relate your story and journey, and pitch the product or service. 7. Lack of excellent customer care. How you make your customers feel will determine whether they'll remain loyal to your brand or go to a competing brand. Maya Angelou, an American poet and civil rights activist, said, I've learned that people will forget what you said. People will forget what you did, but people will never forget how you made them feel. To build a successful brand, you need to understand that everything is about your customers. It's about what they want, how they want it, where they want it, and most importantly, how they feel. Making excellent customer service means making your customers feel good about themselves and your product. Guess what? They'll become advocates of your brand, not just the product. They'll also take it on themselves to spread words about your business because they like how you made them feel about you and your brand. 8. Unable to compete against market leaders. Every business has competition. To succeed, you have to know how best to compete with the people in the industry and market space already, otherwise, your ideas would get lost amidst the crowd or even get stolen. As a small business, however, if you can't compete against larger counterparts, you need to find ways to pivot and stay in business. 9. Failure to build a proper business structure. Sales funnels aren't the only things needed to put in place to build a successful brand. You need to create a proper business structure. For instance, you need to put structures in place to manage the different categories of business. You can hire website developers, SEO specialists, and similar experts to strategize your online placements, get people for financial audits, production managers, quality control analysts, marketers, etc. and show that you have standard operating systems and build the right structure to take charge of each unit. 10. Not seeking professional advice. No matter how informed you are, starting and managing a company can be quite challenging, so you still need professional mentors or advisors to help you out. It will help you figure out whether or not the business is as profitable as you thought. Getting a professional's help will expose you to the right source to get raw materials, the right location, excellent customer service, and how to locate your potential customers, etc. If you want to build a successful brand, it is essential to pay attention to these factors. Thank you very much for watching our videos. If you liked this video, watch more videos in our channel and subscribe. We love you.