Some obvious reasons for business failure:
- Not solving a problem in the market place.
- A solution with little or no consumer demand.
- A product or service that offers little or no value.
- An offering that isn't unique and has major competition.
- Not having the appropriate or skilled talent on board.
Less obvious but major reasons for failure:
- Leaders think they already know enough.
- Too tactical in their sales & marketing efforts.
- A failure to both educate and sell.
- Competing instead of creating and innovating.
- A failure to create a culture and reputation of trust.
Poor economic conditions often get the blame.
Unfortunately, a large majority of businesses tend to be reactive. They are making decisions that impact the future course of their company while at the negative effects of market or economic conditions or their competitors price cuts. When under this type of stress, history shows that over two-thirds of companies cut spending, reduce employee head count or slash training, Research & Development, and marketing budgets. Companies tend to retreat, think short-term and over 90% sell tactically, instead of following a longer-term, global, strategic and holistic path.
- Significant Business Failure - SBA reports that 2.5 million businesses failed in 2009 alone
- An increase in Business Bankruptcy filings by almost 33%
- Higher Unemployment and eroded consumer confidence
- Lost faith in your company's sales, marketing and growth plan
Now for the scary reality. The Harvard Business Review found that more businesses fail after an economic downturn than during one!
Solution: A continuous effort to work ON your business and a commitment to learning while investing resources where they matter, and pay off most!
Increase your education and learning combined with ongoing proven training efforts. The American Society for Training and Development reports that by far the highest return on investment of any business transaction today results from effectively training of your people. Employee training results in a significant reduction of costly turnover by as much as 70% and improved employee efficiency and productivity by as much as 230%.
Training will also contribute to establishing a positive corporate culture, effective communications, trust, and improved staff morale, which creates a solid foundation leading to much faster growth at less cost and with less resistance.
Bolster your current sales and marketing efforts. In analyzing 600 U.S. companies during, and following, the 1981-82 recession it was discovered that the companies that maintained or increased their marketing spend enjoyed a sales increase of 256% over the competitors that didn't keep pace with their marketing plans. When properly created and executed we have found that more effective marketing efforts will often cost less than those you may currently be using.
Take out the guesswork - You don't have to go it alone.
Focus on what you do best while accessing assistance from other resources that possess a great deal of experience and success at what they do best - like business growth. Fortune Magazine surveyed Executives who engaged a business Coach or Consultant and the study found that these executives gave a conservative estimate of at least a 600% average return for their investment.
Qualified resources can add substantial value and speed to your growth efforts without having to add to your long term staffing and payroll and depending on your infrastructure you will often achieve a significant ROI with little additional risk.
A word of caution.
Be diligent in checking out the track record and references for anyone you plan to place your trust in to assist you in achieving your business growth goals. Make sure they possess and can demonstrate the wisdom and skill set needed to work with you in exceeding your outcomes.
A great resource must be able to:
- Demonstrate both experience and success over time
- Provide real testimonials and references from current/past clients
- Demonstrate an understanding of your company and your needs, wants and opportunities
- Offer customized (not just stock) services and solutions to your challenges
- Dedicate ample time, focus and resources to your project
Do your due diligence and pay attention to your heart. Your business is your baby and like raising your child, you want to feel comfortable that this resource will share the same (or greater) level of commitment in watching over, protecting and growing your valuable investment.
Here's to your business growth!
Scott deMoulin, Founder - Destiny Training Systems
* For More information about Destiny Training Systems or our Business Growth Services visit: http://www.destinytraining.com