There are several reasons start-ups fail. What banks can do is sit down with their new small business customers and go over their launch plan to see if they can spot any of the most common factors behind a start-up failure.
Not doing their due diligence when it comes to market research is a big one. Businesses that operate without market research are flying blind. It may be fine for a while to go with gut instincts, but proper market research is the only way to find out what customers really want.
On the back of that, not spending time on targeted promotions is another pitfall. Businesses that market indiscriminately are wasting their marketing budget. Itâ€™s the shotgun approach, whereas you need a specific target to aim at. The scattergun approach can often be fatal, because many businesses only have limited funds for marketing in the first place.
Failure to recognize that technology is a major way of doing business is also a no-no. There is a perception that e-commerce is for large businesses, but this is far from the truth: e-commerce is really just commerce using new tools to market and distribute products and services.
Read the full article at: smallbiztrends.com