Why Most Businesses Fail
Starting or even building an existing business can be tough. Realistically the odds are stacked against you.
We hear it every day – something like 90% of all small businesses fail within the first 5 years. And of those that do make it, only a small percentage go on to become stable businesses.
So the question is, why do a large percentage of businesses fail? There are probably hundreds of reasons we could come up with. In fact, we could probably spend all day talking about it.
But when you boil it down to it’s essence, there’s really only 1 reason why most businesses fail.
Here it is….
Most businesses fail simply because they don’t sell enough of their product or service. How simple is that! And it’s so true.
Take for example a local pizza shop that starts and fails within a few years. Of course the owners could grown tired of the business, or realised they weren’t making enough money or even closed down for health reasons. However, most times it’s simply because the business couldn’t sell enough pizzas to make a profit.
And this same analogy can be applied to almost any type of business.
Lead Generation Is The Secret
So the question becomes, how does a business raise its odds of succeding?
Two words…….Lead Generation.
The businesses needs to generate leads and close leads on a consistent basis. Without doing that, the business will simply fail.
And the buisness can generate those leads in an abundance of ways. Through the use of telemarketing, online ads, print media, referalls and the list goes on and on.
Lead Generation is simply the process of filling your pipeline with prospects that may be intereted in purchasing your product or service.
Lead Generation and The Funnell
Think of a funnell. It’s wide at the top and narrow at the bottom. At the top of the funnell we’re going to generate and throw in all of our leads – calls, web enquiries, referals etc. As those leads fall through the funnell, some will fall out down the botom and turn into sales, and some won’t, they’ll just disappear. In fact, it’s worht mentioning that most leads won’t turn into sales. Most leads won’t go ahead and purchase your product or service for whatever reasons. It could be ba timing, your pricing is too high, lack of interest, etc. It’s just a fact of lead generation.
The point is, you need a steady stream of leads falling through that funnell constantly. The constant act of lead gneration ensures a percentage of those leads will fall out at the bottom and turn into sales. This ensures your business sells its product or service on a consitstnet basis and thrives and prospers.
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