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Why Small Internet Business Organizations Fail
Most Internet businesses fail for three very not so obvious reasons. The first is the lack of adequate financing. It is not simply getting financing it is also understanding clearly how to use it. The second reason most businesses fail is lack of good leadership and direction. And the third reason should be the most obvious, the third reason why most businesses fail is due to the lack of a strong marketing plan. Corporate finance, leadership from management and a marketing plan are clearly three factors that must be covered when starting a business, however even existing companies are susceptible to the lack of quality in these three factors. These factos are geared toward start-up businesses, whoever, they also apply to a lesser extent to business improvement failures.
Let's delve deeper into the third topic, since Infestus is a marketing company. How do you know you are having marketing issues. The first sign of the lack of quality marketing is the urge or need to lower prices to make the sale. When you see that your prices are far below the market average you are a suffering from limited exposure to your market place. When you are forced to lower your prices you are facing the law of supply and demand. Since you are lacking customers, your are required to lower prices. The demand for your product has gone away, and the prices must drop. Once you begin lowering prices, it generally does not stop.
“If you build it they will come”. This is only relevant to your “Field of Dreams”, and not to business and developing great quality visitors to your site. Few virtual items have popularity and search engines and directories do not have the ability to discern lowest prices. So though you may have the absolute lowest price, it means nothing for optimization. A search engine's only goal is to find the best matched page for the searcher's “search terms”.
Here are some staggering facts and statistics addressing why businesses fail within their first year or shortly there fter. One out of every two start up companies close within the first two years. It gets a little better in the third year. It is only one out of every four companies at this point. That only leaves 37.5% of the companies that start as viable businesses in the fourth year.
Infestus Marketing, LLC does not attempt to blindly achieve top search engine ranking for terms that have low conversion rates for the sake of wasted bandwidth. Our primary focus is not on the quantity of your hits but rather the quality of hits. The quality of hits is derived from the number of increased sales.
Some other smaller reasons business close, and yes, close rather than fail, is owners simply decide being in business is not as fun as they thought it might be. The time it takes to be the "shot caller" is very time consuming and taxing on one that is used to being an individual contributor.
Finally here are the bulleted points in an outline form:
- Reasons businesses fail:
Financing
Management
Marketing Plan - Do not consider your prices
your prices are not the reason
business exposure/marketing is - Work on your flaws
if you eliminate your flaws you will have greater success
This should be a good start to getting in shape for having a successful business.
