Why Do Businesses Fail So Quickly?Nov 09, 2022
We've all heard the statistics. One in five businesses fail in the first year. 50% of businesses fail within five years. 66% of businesses fail in just ten years. So you have to ask the question, why do so many businesses fail and why did they fail so quickly? Today, I want to talk with you about three things I call the quick killers.
Every business has three parts that are critical. And if we lose one part, we're out of business. In my book, Business Mulligan, I call them attraction, conversion and delivery. And what I mean by attraction is lead generation. It's marketing. And that's when we we turn strangers into leads.
The next part, conversion is really sales, and that's where we convert leads into customers. And then there's delivery really. That's all about your products and your services. You could call that client fulfillment. If you fall down on any part of that, you're going to go out of business fairly quickly. For example, we could be really good at attracting leads, but if we can't convert them, we're out of business. We can also be really good at attracting leads and converting them into customers. But if we can't deliver, we're out of business.
I know that sounds like common sense. You have to take strangers and convert them into leads, convert the leads into customers and then deliver to the customer. The challenge is often figuring out where you're weak. So what I want to challenge you to do is figure out your weakness, whether it's in traction, conversion or delivery, and get some help.
If you're having trouble identifying weakness or you can't figure it out, reach out to somebody. If you need a business coach, I'd love to help. We could have a quick conversation. We can talk solely about your business, and I can likely give you the next best step to get you back in business. Remember, as you grow, your company grows. Keep growing!