Based on US Census information, approximately 30,000,000 Americans own a business, and sadly many of them do not survive to their 5th year birthday.
We have compiled a list of 4 main reasons companies fail. These all have equal weighting as problems and need to be resolved in a business. This list was made by our personal experiences with companies that are validated with resources such as the New York Times.
Economies of Scale: Especially for small business, economies of scale are very important. You need to survey your location before you plant roots and set up a business. For example if you are a hardware store with 6 locations and want to set up your 7th, it should probably not be a small venue in between Home Depot and Ace Hardware. This sounds like common knowledge but many businesses do not realize how loyal customers are to certain chains and how hard it is to break that loyalty.
Poor Accounting: Allot of business owners do not understand that you need to know every aspect of how a business functions before you start operating. A large portion of your business is the “back room work” balancing the finances. Without the numbers, you have no idea if your company is losing money or making it….and by the time you know it will be too late.
Changing in consumer tastes: Technology runs the average consumers life at this point. They now think “why buy a book when I can download an e-book?” So it is probably a bad idea to open up a book store at this point. We are NOT telling you that you won’t succeed if you open up a bookstore, but slowly technology is replacing physical paper and music objects. If you do go a little retro with your market, make sure it has an environment that is different and draws customers in, because you will have to offer them an experience as well as your physical product.
Operational Inefficiencies- This topic does not come from Limitless Technology CRS (We reduce your operating inefficiencies by the way…) but from the New York Times. The huge multi-million dollar companies that are now around manufacture their product or services at a super lean overhead rate. If you don’t get the best rates on all your operating expenses, then you could become uncompetitive or even worse obsolete as a company.
Number 4 is where Limitless Technology CRS comes into the picture. We make sure your telecom bills are as low as possible, so your company can better allocate its resources. This will make your company more successful and competitive.
Give us a call today at (866) 504 4050 or go to www. Limitlesstechnology.com