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10 Reasons Why Most Businesses Fail
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DavidJackson
You mentioned in one of your posts, “I`ve actually been in sales and marketing for around 18 years. So I know exactly what I`m talking about.”
Yet #7 on your list is: “7. They don`t ask for the order. As unbelievable as it may sound. I`ve actually read ads where the company presented its case for buying their product, and never once asked for the sale.”
David, why is that unbelievable to you? Being an expert of 18 years in sales and marketing?
I have been in advertisement sales for 6 years and OF COURSE THERE ARE ADS THAT NEVER ASK FOR THE SALE. There are many ads that never will ask for the sale because advertisement is not necessarily about asking for the sale. Advertisement where a company “presents its case for buying their product” is a specialized type of advertisement and you should know what type of advertisement that is and why they present their case for their product and do not ask for the sale.
BoldPrint
That’s my response to #7.
SALESCONSULTANT2/17/2009 2:23 PM
Thanks for the list. Would you mind expanding on #7. What are some good techniques to use to ask for the order, say in an ad or proposal?
No problem. After you make your presentation, simply direct the reader what you want him to do. For example, "Stop Losing Money on Your Advertising! Order the Ad Kit Today!"
Here`s another example: "Lose 10 Pounds in 10 Days! Order Slim & Trim Milk Shake Now!"
There are a million ways to ask for the order. The main thing is that you ask.
David Jackson
Sevenoaks,
You sound like that "Primerica" fraud scheme, "Many people don`t plan to fail, they fail to plan" this is such an over rated statement... but they use it to take your money. Is that what you tell your customers as well?
Again, there are many companies out there, that when asked, about a business plan, they don`t have one or don`t care to have one... I don`t understand why people are so strong out on a business plan, I`m not saying you shouldn`t plan! What I`m saying is don`t spend 6 months planning, by then you might have already lost the opportunity, and most of all your spirit...
Write a short 1 page, executive summary, and run with it! take notes along the way and you will be just fine... Nuevolution2/17/2009 1:53 PM
There are a variety of reasons why most businesses fail. Following are the ten most common reasons: ... Hello David, great post here mainly because I like the controversy it stirred up--would be fun to watch in a conference room setting. Anyway, this got me thinking about how controversy can be used as a business strategy to attract um... new business. Remember the Donald Trump/Rosie O`Donnell controversy? Neither one suffered from lack of press. The Business Plan argument: Well, I`d just like to add an embellishment if I may. I personally keep a Corporate Journal. Some call it a Corporate Book. I believe this is an effective way of keeping a Business Plan, however structured, on track. I recently put this into practice and it`s helped immensely regarding productivity and accountability (to myself) as a one-person operation.
The Business Plan argument: I personally keep a Corporate Journal. Some call it a Corporate Book. I believe this is an effective way of keeping a Business Plan, however structured, on track. I recently put this into practice and it`s helped immensely regarding productivity and accountability (to myself) as a one-person operation. Hello Chuck: Great idea using a corporate journal to keep your business plan on track. That`s shows great flexibility and a creative mind. Keep up the good work! David Jackson
DavidJackson
I do want to take the time to let you know that other than #7 I do like everything else you have to say and find the information useful. I do agree that #1 should be inclusive of short daily goals and long-term. You do too you have already said so in some of your responses to various posts.
I have more than one favorite though I have a few those being:
*They`re incompetent.
You`d be surprised at how many businesses there are out there being run by principals who don`t have a clue about running a business. –
* They don`t advertise.
– as I said I have sold for 11 years 6 in advertisement and there is nothing more gratifying than hearing someone tell you if it was not for the advertisement they would not be in business at all. Or to hear them say how they made a huge Return On Investment for their investment in advertisement. Or how excited they were to receive tons of calls that really brings them back to life that their service or product is needed, demanded, wanted by others.
* They`re in it strictly for the money.
* They don`t learn from their mistakes.
* They don`t take advantage of trends.
* Poor presentation of product or service.
Thanks for taking the time to post the information David.
SALESCONSULTANT2/17/2009 9:20 PM
They lack "passion" for what they`re doing. If you do what you love, you`ll love what you do and others will feel your passion and be inspired by you. That`s a post in itself. I already wrote about that in my article 10 Proven Ways For Making Money Online. David Jackson
Sorry... But I can boil it down to two reasons... The rest is just commentary. #1: They Give Up Too Soon#2: They Don`t Learn From Their Mistakes (I liked your #9) The rest of your 10 can be overcome, if they learn from those mistakes, and don`t give up. No need to apologize. You`re entitled to your opinion. David Jackson
There are a variety of reasons why most businesses fail. Following are the ten most common reasons: ... Hello David, great post here mainly because I like the controversy it stirred up--would be fun to watch in a conference room setting. Anyway, this got me thinking about how controversy can be used as a business strategy to attract um... new business. Remember the Donald Trump/Rosie O`Donnell controversy? Neither one suffered from lack of press. The Business Plan argument: Well, I`d just like to add an embellishment if I may. I personally keep a Corporate Journal. Some call it a Corporate Book. I believe this is an effective way of keeping a Business Plan, however structured, on track. I recently put this into practice and it`s helped immensely regarding productivity and accountability (to myself) as a one-person operation.
YES!, Proactive! thank you for sharing that with us... This is what I do as well. I keep a Log of all corporate events, mistakes, and obstacles, and what I do is write a paragraph or two, sometimes depending on the issue, a whole page and I address, what I did, to over come that obstacle or how I fixed that mistake...
In the beginning of my journey as a new business owner, one of the major issues running my business was "customer`s not paying on time".
After writing a two page journal, and addressing this issue, things started floating much better and how they were supposed to from the beginning.
Folks, this is another good reason why businesses fail. it is the "biggest - small business - killer", customer`s not giving
you the benefit of the doubt or think that because you`re a small
business they can basically wipe their rear with your company and
policies.
If you`re going to write a business plan and use that as your bible, don`t write it from an optimistic point of view, have a mixture of both Optimism and pessimism . Remember for every positive there is a negative, and if you`re business plan is all positives and no negatives, you`ve just created an unbalanced business plan.
The last time I wrote a business plan was when I was in college and believe me, it is easy to get carried away in optimism, and before you know, you fall in to "La-La Land".
BTW... did I mention that my school project became my company, some 1 year after I graduated?
Bad cash-flow management...
I`ve seen many businesses fold because of this common problem
Yes... the biggest killer...
Bad cash-flow management...
I`ve seen many businesses fold because of this common problem
Yep, that`s a biggie alright.
David Jackson
After writing a two page journal, and addressing this issue, things started floating much better and how they were supposed to from the beginning.
Thankfully Nuevolution, the only "customer" I have to worry about paying is myself (for the most part). But as a rule, I too keep an accurate daily account of business activities, outcomes and adjustments (if something has gone awry). I routinely type this out on a plain text editor, print it out on 3-hole punch and place in a binder with monthly tabs. This way, if Uncle Sam ever needs to know what I`m up to; no problem.
Chuck, this is a great system! The more you explain it, the better it sounds.
David Jackson
DavidJackson2/19/2009 1:12 PM
Most first-time businesses don`t get the planning and marketing parts. If they do write a plan, usually all of two envelope backs, it always shows a profit by the end of the first year. Non-sense! They should write the plan backwards. Do the research, see what every need is and put in realistic figures. Then be realistic with the sales side (# of items, quantities, margins). THEN SEE IF IT WORKS.
As for marketing, whatever you plan on investing on everything else in the business, match it for marketing alone.
Richard Carter
greenenergycafe.com