Why Positive Brand Perception Is Vital for Small Businesses

by Lauren Schneidewind on February 13, 2017

According to research from the Small Business Administration, only 50% of new businesses survive the first 5 years, Sadly, only one-third of them are standing after 10 years. If the failure rate is so high, then how can small business owners survive?

While it’s commonly accepted that failure is a natural part of life, when it comes to business, it’s harder to agree that failure is also a necessary element of success. How is this paradox possible? Because by making mistakes, we learn valuable lessons that help us become better and better at what we do.

Since most entrepreneurs find it too risky to grow a business by trial and error, let’s see how to fail in a positive way:

First, Analyze your failure.

Are you a good leader? When asking yourself this question, assume that failure could be due to your poor management skills. If that’s the case, start educating yourself and put what you’ve learned into practice.

Is your company invisible? Even if you have a good product or service, your competition could be smarter, and your company may not be visible enough among other businesses. How can you make what you offer unique and more valuable to customers?

Do you know what your customers need? One of the critical success factors in business is to always pay attention to trends and interests of existing and potential customers. Don’t be afraid to ask for feedback from them and to implement their ideas.

Do you have a good business strategy? If you are operating without a business plan or strategy, then your business is not built on a sound model. In other words, you may have a great idea, but the reason for the failure may come from poor implementation.

Are your money management skills lacking? Everyone who starts a business is hoping to make a lot of money. However, you may lack skills related to cash flow management. Financial issues such as taxes and expenses need to be handled professionally. If the accounting in your company is not done properly, then there will be one result - failure.

Did you grow too fast? Half of all small businesses may fail, but there are others that grow much more rapidly than expected. It’s not good news if the owners can’t handle this growth. Prepare yourself and your company to meet the new demands of a larger business.

After determining the reasons for your business failure, learn from them and be better prepared for the future. Here’s how:

Use your failure as motivation.

If you use a business failure as ‘fuel’ to energize you and give you the strength to continue, you will very soon walk on the path to success.

Don’t forget that failure is temporary.

Some mistakes lead to temporary failure. So don’t make the mistake of getting stuck in it. Remember your real aims. Take your time to reflect on the reasons for the failure and then move forward without delay.

Be realistic about your business expectations.

Setting unrealistic goals is a certain way to fail and get disappointed. Determine reasonable goals, observe what influences your business, and be flexible to adjust to the changing environment.

Change your focus.

Even if you had a terrific idea for your business, the implementation might not have gone as you expected. Be very careful not to give up too soon and play the victim. Instead, seek another perspective from which to look at the situation. It’s very likely that you’ll find more ways to make your idea come true.

Don’t be ashamed to ask for help.

There’s nothing wrong if you ask those who are more experienced and knowledgeable for advice or support. It doesn’t mean that you are weak or not good enough. On the contrary, people will see it as proof that you are determined to find a solution to your situation.

Learn from the experience of other business people.

By learning from your peers, you will see that there’s an answer for every question and a solution to every problem. Learn from other business people’s mistakes and achievements, and you will be better prepared to face a variety of situations in your company.

Keep going.

In both personal and business situations, most of us have lived through despair after failure. Make efforts to get out of the crisis wiser, ready to try again, and turn negative cases into positive results.

Remember to look at failure as a temporary step back on the path to success. It’s a lesson to learn and a chance to do things better the next time.

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