Establishing a new business can be a daunting task. However, what is even more challenging is to ensure that the business sustains its initial years and flourishes in the long term. For entrepreneurs, the initial years of their venture are the most difficult. It has been observed that approximately half of the start-ups are not able to overcome the challenges faced during their primary years. The common reasons for failure among most businesses are the same, but fortunately, they’re avoidable. Some of them are mentioned below:
Lack of Value Proposition
Not having a value proposition can be fatal. For a business to be successful, it must have its own specialty. As a result of the growing competition, consumers have a wide range of options to choose from. In order to attract customers and to have a dedicated customer base, businesses should introduce innovation as well as work on their Unique Selling Proposition (USP).
Failure at Marketing
A strong marketing strategy plays a crucial role in today’s time. Businesses should have a strong online presence. This not only includes social media but also strategy for offline marketing tactics. Knowing the target market beforehand is essential for the success of a new venture.
Not enough funds.
Most often, small businesses fail because they don’t have enough money. It must be remembered that running a business isn’t just about purchasing/renting a space, stocking up on supplies and paying the bills every month. Entrepreneurs must be prepared for potential emergencies in case of unforeseen loss to the company. It’s recommended that businesses have at least three months of operating costs in reserve in case something affects their revenue.
Terrible location choice
While starting a new business, entrepreneurs must be careful about the choice of the location. It is advisable to research a bit about the location before settling for it. The location of the business should be decided keeping the convenience of the customers is mind.
Lack of demand
One of the most common reasons that small businesses fail in the initial years is “Lack of demand”. Therefore, irrespective of how unique the business idea is, it must be ensured that there is sufficient demand for it in the market.
Being a successful entrepreneur can be tough, but by avoiding the aforementioned downfalls and having enough funds with the help of Finserv Markets, your business stands a better chance at success
Prominent non-banking financial companies (NBFCs) like Finserv Markets, provide small business loans to ensure your company stays afloat. The application process is quick and hassle-free, and funds can be received in as little as 24 hours.
Business Loan from Finserv Markets comes with features like ‘principal holiday’, unlimited withdrawals and flexible part payments among many others. Finserv Markets allow you to focus on your business by taking care of the funds required. So why wait? Give your vision a much-needed platform. Set up your new venture with the help of business loans from Finserv Markets, today.
Finserv Markets, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment, and exclusive EMI store, all under one roof- anytime, anywhere!