Fuzz

Why Most Businesses Fail

In the world of businesses, being a small fish is not an option, even if you are running a local, small business.

According to the U.S. Bureau of labor statistics, roughly 20 in 100 small businesses go bankrupt and fail within the FIRST YEAR.

The more that time frame grows, the more the percentage of businesses failing increases, until after a decade, where just a third of the businesses have survived.

And here arises a question … Why does that really happen, why do MOST businesses fail?

Well the truth is that business failure (and success) is a complex thing which depends on a variety of factors,

Ultimately it boils down to 3 main aspects that have been faulted and/or ignored, so let’s have a look!

#1 PLANNING

Poor planning is without a doubt the most common reason why beginner entrepreneurs FAIL in the early stages of their company.

Many people simply have a good idea that gives them a strong emotional/mental response that makes them truly believe in that idea, leading to them starting a business before making a plan.

Running a business on the move is NOT how you should approach this as a beginner businessman.

Instead, make a concrete plan that has everything down, pen on paper!

#2 FINANCING
Oftentimes, businesses fail due to a lack of funding or income stream, as well as poor overall financial management.

As a business owner, you must ensure that you know EXACTLY how much money you need to keep all internal operations going on a day to day basis.
You need to know the total amount of money needed across all operations and then divide them into sub statistics about things like payrolls, rent, utilities, etc.

Financial management is key, and in the very beginning of a business, that must be even more clear.

#3 MANAGEMENT

In the early stages of your business journey, you will likely have to take many roles, including the role of a manager.

However, as your company grows, management will be delegated and your sharpest set of skills will shine in the process of growing the company.

Nevertheless, though that happens naturally, you must aim to choose the right managers, as inadequate management can RUIN your business.

FINAL THOUGHTS
Most businesses fail because of poor planning, management & financial faults, so make sure to learn those ropes before jumping into the business world!

Stay hungry.

How do you attract the customer you want?

This can be a challenging topic. Attracting customers can be tough no matter what, let alone attracting a client that actually fits what you are looking for. To do this you need to ask yourself a series of questions about who you serve and who you want to serve. This may sound funny because you may say, “I can work with anyone,” but that shotgun approach can oftentimes leave you with few people walking in the door. People typically recognize their problem when they read about it, so if you are not telling them about a specific issue you can help with, they will probably just keep moving.

Here are some questions you can ask to find your target audience:

- What can you actually help someone to accomplish? (1-4 pillars)
- Describe your favorite client ever
- What is the biggest hurdle your customers have to get through?
- What are the common issues that arise for your customer? Time, stress, etc
- How would/do you overcome these issues?
- Are there any other hurdles or stressors?
- What does it cost them to stay where they are?
- What would it cost if things get worse?
- What is a quick win that you can give them? What is/How to solve their biggest challenge

If you work your way down that list you will discover what you are good at, who you want to work with, what their pain is, how you can and/or have helped someone to overcome that already, and how to get them to stay with you.

Even if you can serve everyone because you are good at what you do, this can help you to sculpt micro offers where you target a specific pain point or issue that you can help someone solve!

💥💥💥Sales, Sales, Sales….💥💥💥

This can be a dreaded word for many business owners. I know that I was someone who struggled with this for a long time. I never wanted to ask people for money, it felt weird, it seemed unfair, or I felt like they wouldn’t see the value and simply say no. We need to change this mindset and how we sell to help avoid this for the health of our businesses.

Quick note, none of what I am about to say will make sense or work if you do not believe that you will actually be able to help them or if your fulfillment cannot actually support them.

Not wanting to ask for money…
If you are selling right, they should be asking you for your service before you ever bring up the price. Typically people are reaching out to you or discussing their issue that you can solve because they know they need help. You should make your sale all about them. Ask qualifying questions that start with what or how and help them understand what they need. You should not be telling them or even talking that much. You are a guide to get them to the answer they need to get to, if that is you, amazing, if not, that is ok, help them out and stay in touch. Eventually by the end of the conversation, if they are a good fit, they will know they need you and fit their budget to your service.

It feels weird....
A lot of times these sales feel awkward because young sales people will steamroll the conversation. We always want to tell people so much about what they will get, because we think they care, that we will talk the whole time. The same rules apply for this hangup, simply listen and guide the conversation with qualifying questions and then labeling. Example: How are you going to get to that point where your jeans fit again? It sounds like you have a plan but lack the motivation to stick to it… Typically they will confirm or correct you and tell you what they see the problem for them is. With that information you can now decide if you can help them with that problem. If you can, let them know!

Unfair to ask…
This is something that I struggled with a lot. People work hard for their money and I didn’t want to feel like I was taking it. First, remember that if you fulfill what you say then this should already be out the window. However, even more importantly, you are an expert in your field. You probably went to school, became certified, spent years studying, or have a ton of experience. Almost anyone can google or youtube anything at this point, but how do they know what to implement and even if they find it, will they actually do it and do it well? The answer to those more often than not, is NO. Anytime someone wants to make a change, seeking an expert to help them is hugely important because otherwise they could spend years trying to figure it out. You will work hard for people when they pay you and they will be more committed to following through. People should FEEL change. It shouldn’t be super easy or it will not last.

They wouldn’t see the value…
This one is pretty simple. Deliver on what you say. Early in your business this fear may arise and that usually means that you will over deliver, which is a great thing! Once you work with person after person you will start to realize that you are good at what you do and you can help people so show them the value, don’t tell them! Then have your customers tell others because you did follow through and delivered what you promised.

I hope this helps someone out there to get over the fear and ask! Most business owners do not discuss their business enough. You are helping someone solve a problem if you can and that is it! You are not selling them snake oil or making the sale and then forgetting them. Commit to help or serve people and then work to build that confidence in what you do and how you can help!

If you could snap your fingers and fix 1 part of you business, what would it be?

Now it's easier to send Fuzz a message.

Welcome to Fuzz Consulting..

We Specialize in helping Small business learn how to leverage social media advertising to cost effective marketing.

We include additional services to optimize your experience:
- Building out Facebook Ads
-Automation of Sales Funnel
-How to Position your service
-Sales Consulting
-Operations Consulting
-Business Development Consulting

Why FUZZ

Well FUZZ was founded by Sam Grantham & Chase Parker who have used these methods to take there business from $180,000 in year one to $560,000 in year 3.

They Have spent over $400,000 in Facebook & Instagram ads, so they have a deep understanding of how to make the most effective ads.

Fuzz Currently Works with multiple industries, from Life coaches to restoration companies.

We currently manage 15+ ad accounts and we have weekly consulting calls with our customers.

If you are interested in learning more about how we can help you get cost effective marketing and update your client acquisition system then comment below and we will message you.