Why Some Businesses Fail?

Business is a complex concept that many fail to gasp. A business only emerges to be successful if it is implemented after thorough planning with passion, discipline, and after a great deal of research. Sustaining a business can become extremely difficult after a certain period of time due to budget constraints and poor planning. According to a survey, in the USA alone, 70% of new businesses take a hit within a decade of their conception.

A truly successful business is not one that booms and experiences a short and vibrant period of success. A truly successful company is one that enjoys sustainable success that lasts long term and withstands the test of time. Many business owners make the mistake of ignoring critical issues during the first few years, which in turn damages the business operations down the road in later years, and sometimes it's too late for the problem to be fixed.

A number of reasons can lead to your business becoming a failure. Some of the common reasons are:

1. Weak Leadership

Strong and effective leadership is important in ensuring the success of your business. An ineffective leader ends up micromanaging the employees and will try to control all aspects of the company. Unfortunately a poor leader will fail to understand that for one man, that is simply not possible. As a result, the business environment starts to crumble. A good leader is the one that imparts knowledge to the workers and tries to give specific duties to responsible people. A good leader knows how to delegate so that every aspect of that business gets taken care of quickly and efficiently.

In new businesses there are many different requirements and responsibility for different departments, and this can be difficult to manager at first. Unseasoned leaders are overwhelmed by juggling so many responsibilities and challenges and cave under the stress they can bring. Leaders need to be strong, bold, and unafraid of making quick, but calculated decisions. Good leaders also pay attention to details and are constantly looking for means of improvement. Without good, solid leadership, it doesn't matter how much money a business has or good a product it offers, it will fail.
If you don't plan for the long-haul, your business will fail before it even begins.

2. Lack Of Long-Term Investment

A far-reaching, powerful, long-term vision is essential for a good business. Many businesses make the mistake of getting overexcited during the first few years as soon as they start earning money. As a result they often fail to develop long term strategies for growth, and don't make investments in the future, clinging instead to immediate profits. Such an attitude in business will inevitably lead to poor quality products, stagnant growth and innovation, and customers who will eventually lose business. The customer base will diminish and the business will fail.

3. Lack Of Market Research

Thorough planning and research are needed at the time of launching a business. A primary reason that leads to business failure is that it gets launched without proper research and does not target a specific market. Market research is vital and should be conducted before you even think about starting a business. Even if a business enjoys success for a short period of time, ultimately, it is bound to crash without any kind of research. Without conducting research beforehand, a business might as well be stumbling around blind. How can you expect to succeed in business if you don't know anything about your hopeful customers?

A successful business is defined by the ability to predict the consumer’s requirements and behaviors. With this knowledge they can then deliver products and services that perfectly fit the needs and desires of the needs of the customers they want. You don't necessarily have to have a unique or incredible product. What you do need is to able to offer premium quality to customers who are looking for something from you in particular.

Collecting and analyzing information about market trends and procedures is important in keeping your business ahead of your competitors by offering new products, services, and deals to keep up.

4. Lack Of Customer Retention

Many businesses ignore customer retention strategies because they keep focusing on finding new customers. However, it is counterproductive strategy because old and loyal customers are important not only in increasing the sales of a business, but also popularizing it through good reviews and word-of-mouth. Not only that but old customers are easier, and cheaper to keep, compared to the process of finding new ones.

5. No Expansion Or Personal Growth

Growth does not only mean establishing a business in different locations or expanding operations. It means you also need to keep your business inspiring and innovative. Fresh talent should be welcomed in your business because they bring a lot of modern and fresh ideas to improve your business. Moreover, leaders of a business should also keep attending different seminars and training sessions to make sure they are keeping up with the times and adopting the latest entrepreneurship strategies.

If you want a deep examinations of things that may be holding your business down, you also should considering looking into programs like BizFire's Free Business Analyzer and Growth ToolTOOL, which may provide many valuable insights in a fraction of the time.

How Going For The "Big Fish" Deals Can Increase Your Business

Too often business owners try to fight over the scraps. They try to make deals or land sales with anyone and everyone that they can find, regardless of if those deals are barely worth any money to them.

It’s amazing what can happen when you try to go for the bigger clients or choose bigger businesses to partner with. Just a single deal can often make for a very good month (or even year!).

There’s two main ways of doing this. First, you can target more high-end prospects with higher end offerings. By raising your prices and offering more “done for you” services and products, you can try to target the elite buyers instead of focusing on being the low-priced leader barely scraping by. The second way is to try to focus on big “competitors,” or on other business owners who are far bigger than you in a similar market, but not necessarily competing, and then trying to strike a deal with them to sell or promote your offers (for a big cut). If you make this hands-free, super easy, and very profitable for them, you’d be surprised how many are willing to do deals with you.

One way of doing the second suggestion here is by offering to white label your product or service. This is where you allow someone to sell your offer as their own while you do all the work to fulfill it. This can be a win-win for both, as they can get a good cut of the sale for doing virtually nothing except making easy sales for you, while you fulfill the sales, do the support, and make lots of extra sales without having to spend money on advertising or do any marketing yourself. A single big fish deal like this can make an entire business.

One thing that still amazes us to this day is that it’s often just as hard to make a huge sale or business deal as it is to make a tiny sale or business deal, yet the vast majority of people tend to focus on the little fish because they don’t think they’re able to land a bigger deal! This can be applied to almost any aspect of business – whether it be finding big players to partner with, selling high end products / services, or even just being an affiliate for more expensive products! Quite often times it’s just as hard to sell a $5,000 product as it is to sell a $50 product, as long as you’re targeting the right kind of prospects. One just results in you making a lot more.

Try going for the big fish now and then, whether by going after more elite prospects, at higher prices with better offers, or by seeking out big partnerships to do white label deals, where they sell your offers for you for a cut.

For more great marketing and sales tips to increase your business, check out this book 50 Marketing Tips & Tricks Learned After $100 Million in Sales Over 20 Years!.

How to Use a Sense of Urgency to Increase Your Sales: Offering a Limited Time Deal

A sense of urgency can be a great motivator, both in encouraging a sale and in life. To use urgency in business, look at offering limited time deals, especially ones that don't last more than a few days tops.  And if you have an e-mail list, mail them a lot more on the final day with reminders to the deadline.  You'll often get most of your sales on the final day! Countdown timers can be another great way to emphasize this.  The idea is similar to furniture stores that seem to always have sales that end on the weekend... even though we all know they'll probably have another sale in a week or two, we're more likely to buy now if we think there's a sale on it now vs. later.  People like to procrastinate, so limited time deals can get them off their butt to take action.

For example, if you run a gym, you may run a sale on gym membership, where if they sign up over the next 3 days they receive a discount on the total price, or X amount of personal training sessions as a bonus. The time limit creates a sense of urgency, encouraging people to buy that may have sat on the fence or procrastinated otherwise.

One huge marketing tip that we’ve perfected over the years, which has made us a lot of money, is a limited time deal method that we call the 3 Day Money Maker or the 1, 2, 3 Limited Time Offer. It can especially work well if you have an e-mail list and can e-mail them about the special offer.

Here’s how it works. You setup a special offer (ideally either a big discount like 50% or a big bonus to include with it) that only lasts for three days. We typically either start this on a Thursday or Friday and have it end over the weekend on midnight (either Saturday or Sunday night). On the first day, you only e-mail your list once to announce the special deal, provide them with a link to the sales page to buy it, etc.. You then tell them that the deal ends on midnight on X Day (three days from then). You typically will get some initial sales then, but not necessarily a ton. Then on the second day, you send them one e-mail in the morning and one e-mail later in the afternoon or evening. You likely will get few if any sales then, but that’s okay. The third day is where the real magic happens. On the third day, which is the final day of the sale, you e-mail them once in the morning, once in the mid to late afternoon, and once in the late evening. Your subject lines should increase the sense of urgency with lines like “Final Chance – 50% Off Deal Ends Today” and “Only Hours Left to Save 50%” or “Final Warning – Deal Ends in a Couple Hours” (they don’t have to be exactly that, but you get the general idea of making it seem urgent).

The final day, especially the final hour or two, will get A LOT of sales typically, especially in the final minutes of the special offer. In fact, we’ve found that if you leave the offer up until the morning, you can get several sales in the wee hours of the morning that think they gamed you by getting the deal just after it technically was meant to close. Using this method properly exactly as we laid out can make some businesses more money over a few days than they might make in several weeks or more!

Think about how you can create a time sensitive deal where people only have a limited time to take you up on it. The sense of urgency encourages people to buy. If you have an email list, constantly remind people of the deadline, as often the most sales will happen in the last day near the end.

For other cool strategies and tricks to increase your business, check out this book full of marketing and sales tips 50 Marketing Tips & Tricks Learned After $100 Million in Sales Over 20 Years!.

How to Show Value and Position Your Price to Encourage Customers to Buy

One way to show value and highlight the great price you’re offering your customers is to point out when you are giving a discount or savings, as this lets customers know you’re giving them a great deal and lots of value. A discount also has a psychological effect - we feel we are getting a better deal and are more likely to buy. Seeing that an item is discounted not only is an incentive to buy it now, it can also encourage new users to buy that might otherwise have not considered it.

For example, when listing your price, you might write: "$97 --- 50% Off Today!" This makes people feel they are getting a great deal, helps them justify the purchase to themselves and is more likely to push them over the line.

If you have several similar offers that are slightly better or more/less expensive than the other, instead of just listing off the benefits of each one next to their price, you can also not only list off the savings, but say “Good Deal,” “Better Deal,” and “Best Deal” next to each one (or “Most Savings” or something similar). Never assume that people will just do the math in their head and know which one is the best deal.

Think about how you can apply this to your business. Can you put a savings amount next to a price point (eg, “$97 --- 50% Off Today!)? This makes customers feel they are getting a great deal and can encourage customers to buy that may not have bought before.

After more tips to show customers the value of your product? For more marketing tricks and strategies, check out this book here: 50 Marketing Tips & Tricks Learned After $100 Million in Sales Over 20 Years!

How Can Simple Tweaks Drastically Improve Your Sales?

Making huge gains in traffic on your website and social media accounts is excellent, but what matters the most is generating conversions. There is no use in spending a large amount of money on extensive marketing campaigns if no one is buying your product or services or signing up for your website.

Many tweaks can drastically improve your sales. 5 of the most important ones are discussed below:

1. Make The Benefits Conspicuous.

All of the benefits offered by your products and services should be prominent on your website. The landing page and homepage are important in making these advantages known to potential customers immediately. Some examples of benefits your customers will love and should see might include free delivery, customer support, discounted offers, and giveaways on certain purchases. All the unique selling points of your business should be emphasized to convince the customers about the importance of what you have to offer, front and center on your website.

2. Use Credibility Markers

Using credibility markers can definitely be the tweak that you have been looking for. It can skyrocket your sales to unprecedented levels because the trust and experiences of previous customers are essential for the new potential customers.

Examples of credibility markers contain reviews and testimonials at a dedicated page on your site. Social media pages like Facebook understand this strategy and utilize it on their business pages. Facebook for example, has a specific review section for business pages they offer their users. Make sure you ask your happy customers to leave a fantastic review for you. You can also derive a huge advantage in improving your sales if you manage to get an influential personality in your business area to endorse your brand.

3. Call to Actions

The aim of your business and its site should be unambiguous to the audience to maximize the success of its aims. If for instance, you are building a lead generation page a professional contact or submission form should prominent, easy to understand, and easy to use for visitors that may turn into customers.

If you have products available for sale they should also be easy to see and buy as well. Along with this devices you'll need to craft a strong call to action to seal the deal.

4. An Efficient Conversion Process

The conversion process should be as easy as possible for potential customers.”Click here, buy this, fill out this easy form” you need to streamline the process for your customers, and to maximize your sales.

Many business owners overlook this strategy, but it is very simple to implement. The method of purchasing products and check-out should be modernized and streamlined to increase the sales of your business. Don't ask your users for unnecessary information and try to make the buying process as fast as possible before they remove the order and change their minds.

5. Improve Your Website

The style, design, and structure of the website of your business should be captivating for your visitors. It should keep them engaged. An optimial website can be achieved by adding attractive content and making use of other tweaks like:

• Adding Images And Videos

A large portion of online visitors are more likely to watch a video than they are to read lengthy content. Hence, it is a good idea to add videos on your website and inform potential customers about your products, services, and qualities of the company via videos. Engaging and high-quality videos will keep the users hooked on the page of your business, and the chances of selling will increase.

• Faster Loading Times

Consider the fact that people have a very small attention span nowadays and are constantly clicking away and swiping on their phones. Your website needs fast loading times to make sure it is easily accessed by users, and that they don't move on to other sites. It has a huge impact on conversion rates. Allocate a decent budget to site optimization to enjoy more sales.

Every business owner must keep in mind that the ultimate goal of tweaking the sales processes is to attract more customers and optimize the conversion rate. The whole process requires energy, time, and financial resources. You will have to keep testing new things to find out the best approaches and eliminate the ones that do not work for your company. With time fruitful impacts will begin to show in terms of sales and total revenue from your business.

All of this can be made easier by using a simple, optimal program that audits your business from the inside. BizFire's Free Business Analyzer and Growth ToolTOOL is a great way to save yourself the time and headache of working out these tweaks in your business on your own.

Pricing Strategies to Increase Your Sales

How can you price your product in a way that psychologically impacts your customer into believing they’re getting a great deal? When people see the difference, between your normal price and your sales price, it influences their decision to purchase. By having a “normal” price listed it creates the impression that the deal they are getting is awesome. They’re getting all this value at a price that is way less than “normal”. People love to believe they are getting a bargain and by listing both your normal and sale price side by side, it highlights the value they’re getting for their money.

For example, when you list your pricing, write it as, "Normally $197 -- Only $97 Today!"

You can also come up with reasons to have such discounts listed. These reasons can be mentioned next to the discounted price as well. These could be things like a holiday special, inventory closeout, end of year special pricing, manager’s special, etc.. Any reason works and makes it seem like a legitimate deal that customers have to take advantage of.

Remember, people love a bargain. So create the perception of a great deal by listing your “normal” price next to your sales price (eg, "Normally $197 -- Only $97 Today!"). Also consider names for special deals just to have a reason for that deal (like a holiday discount or manager’s special).

For more great pricing strategies, as well as little-known marketing tricks, check out this book: 50 Marketing Tips & Tricks Learned After $100 Million in Sales Over 20 Years!.

How Offering A Free Plus Shipping Offer Can Build Your List And Lead To Big Upsells

One of the best things you can do to get people to take action, especially online, is to offer a free plus shipping & handling offer. These offers have an obvious HUGE value because nothing beats free, and by having them pay a small S&H fee, they still see the value in the free product, despite how often times your products’ costs might be completely covered in this S&H fee.

For instance, if you go to a site like Aliexpress.com, which specializes in drop-shipping products of all sorts, you can find lots of jewelry, pet toys, gadgets, etc. for under $2 that already include free shipping. Some of these have perceived values of easily $10 to $30 or more.

That means that your customers get an awesome deal by thinking they got the bargain of a lifetime, while you also get a steal of a deal by getting a new customer at better than no cost to you (if the product and shipping costs $2, for instance, you’re up $3 in profit just by charging a $5 S&H fee).

Obviously, it’s hard to strike it rich at a few bucks at a time, which is why you want to treat these offers as only an entry point into your sales funnel/offers. You want to offer them additional upsells, other products/services on your backend, and take full advantage of their e-mail address to reach out with additional offers in the future, as everything from that point on could be pure profit for you (at least in terms of no advertising costs).

We’ve started entire businesses around this model. You can really up your profits here, like we did, by not only getting lots of front-end buyers in with an amazing free plus S&H deal, but by then offering several related upsells, including a recurring one with a big bonus worth more than the first payment, which can skyrocket your conversions into your biggest money makers in your funnel. This all sets you up to get great conversions both on your cheap front-end to get a lot of buyers, but also get great conversions on your upsells that make your real money. Never underestimate the power of getting something for free or a big bonus with a smaller purchase.

So consider an impulse buy product with a free plus S&H offer where you don’t lose money after collecting the small S&H charge.  Then upsell additional offers to make the most of your money.

For more help mapping out your upsells and sales funnels, so you can look at how you can increase your business, check out this software that helps you build out your sales funnel. BizFire's Free Funnel Maker & Analyzer