7 REASONS MOST BUSINESSES DON’T REACH 6 FIGURES

7 REASONS MOST BUSINESSES DON’T REACH 6 FIGURES

These reasons for business failure are restricting your success. Get over them and make your business a huge hit

As soon as we reach our late teens, achieving a six-figure income becomes a goal. With our high energies, lofty hopes, and willingness to take action, we frequently turn to business as a springboard for realising our dreams. Even if the majority of individuals do not really start a business, such a scenario is easily plausible, isn’t it?

The issue is for those who actually go through all of the processes to start a business and run a successful operation. They put in all of their labour and resources, but earning six figures remains their ambition, and unfortunately, most companies will never achieve it in their lifetime. What do you think the problem is? Most likely, the approach or road they are pursuing to achieve success.

After conducting research on the issue, we have decided to highlight some of the reasons why businesses fail to achieve six figures. So, in this article, we’ll attempt to turn your small business into one of the success stories you’ve always wished for.

7 REASONS MOST BUSINESSES DON’T REACH 6 FIGURES

7 BUSINESS FAILURE REASONS INHIBITING 6 FIGURE INCOME:

Following a thorough examination of the case and a general examination of the common errors made by most startups, we have determined that these seven areas are the primary cause of the problem.

1 – SERVING THE “MASSES” APPROACH:

You want as many customers as possible as a startup firm. Obviously, because you make a profit, which is exactly what a company should accomplish. However, most firms overlook the importance of the type of customer they are recruiting.

For most organisations, everybody who purchases the company’s products or services is a customer, not only once, but also on the list of future customers. And this is where things start to go wrong.

The majority of mentors and business gurus advise you to choose a niche or target market because it aids you in understanding customer interests and making company decisions accordingly. However, if you start serving everyone, you lose your power to make specific judgments that could help your company flourish.

“Expect change. Analyze the landscape. Take the opportunities. Stop being the chess piece; become the player. It’s your move.”

Tony Robbins

It’s the equivalent of serving peanut butter to everyone on the planet. You might enjoy it, and your friend might as well. But it is not liked by everyone in the world, and it is unlikely that they will ever enjoy it. So, if your firm is making and selling peanut butter, you’ll need to discover individuals who like it and want to buy it. The same is true for all other types of enterprises, products, and services.

WHAT CAN YOU DO?

When you try to make everyone happy, you’ll find that you can’t even make a few people happy. As a result, they will not return to your firm, resulting in nil or restricted purchases. On the contrary, if you can make a few people happy, they will become repeat clients, and you will be able to make better and more convenient selections to build your business, increasing your chances of earning a six-figure income and decreasing the causes for business failure.

2 – UN-EQUAL DISTRIBUTION OF ENERGY IN DIFFERENT BUSINESS PHASES:

Our readers are likely to disagree on this subject. Higher energy is usually thought to be better and to be the source of motivation and driving force for a business, especially if the business is new and tiny. This is possible, but only under one circumstance. Do you believe it is possible to retain the same level of energy throughout the life of a business? We all know that such a scenario is not feasible, hence the answer to this question is most likely No.

When you first start your business, you are more enthusiastic about it and prepared to go to greater lengths to make it a success. However, once things have calmed down, you can begin to establish your own routine. There is a noticeable lack of energy and focus. A sudden drop in energy or motivation (whenever it occurs; after 6 months or a year) will have a huge influence on your business, and this one will be long-lasting. This could also be the result of a high level of weariness, so you’ll need to make sure your goals and efforts are focused on long-term achievement.

WHAT CAN YOU DO?

What can be done to avoid a situation like this? This is a million-dollar question that you might be thinking about. Setting up a schedule from the beginning, based on our experience and general observations about the business, can be extremely beneficial. You may be willing to put in extra effort at first, and you will be required to do so, but keep it to a manageable level and don’t overwork yourself so that you have enough energy for your business’s growth stage.

If you follow this easy piece of advice, you’ll have a better chance of generating a six-figure income from your business, and you’ll be proud to be able to supplement your six-figure employment (not really a job, but it’ll be your source of income, so you can call it that, right?)

3 – NO CONCEPT OF TEAM BUILDING:

You may be the only one working there for the first few months of the business; this is very reasonable. It would be you performing the purchasing, delivering, decision-making, finance, or any other action that your firm would require of you in this situation. However, after you’ve established yourself and are likely to expand, you won’t be able to continue doing business in this manner.

Now you’ll dismiss it as a stereotypical argument, reasoning that you won’t be able to handle everything once you intend to expand and service more consumers. As a result, you’ll almost certainly be recruiting more individuals.

However, we are not implying that you will not hire additional personnel; rather, the problem that most organisations confront is that their owners are unable to let go of the concept of a single army, even when they hire additional personnel. When they realise they have employed a specialised employee to perform that job, you’ll see them interfering in every domain.

It is your business, and you have the right to oversee it, but you must also realise that interfering in someone else’s work domain on a regular basis might increase unhappiness and decrease motivation to accomplish the assignment completely.

Furthermore, this will disrupt the chain of command, causing problems with accountability and responsibility. All of this leads to complete disarray and the lack of the six-figure career you’ve always desired. In the worst-case scenario, a mess like this could be one of the reasons for a company’s failure.

Coming together is a beginning. Keeping together is progress. Working together is success. – Henry Ford

WHAT CAN YOU DO?

Another point to consider in relation to team building is that some business owners are unaware of team building (training, motivating, delegating, etc.) or are unwilling to devote their limited resources in this area. It also leads to another factor for the company’s slow growth. As a result, ensure that you avoid such mistakes and that your business is a tremendous success.

4 – LACK OF VISION:

You should know that “vision” is a term used by huge corporations, mainly conglomerates, to describe what they aspire to accomplish. And as a tiny firm, you won’t think it’s important. This is the error you’re making, and it’s the reason your firm hasn’t yet achieved the six-figure mark.

Large corporations are not the only ones with vision. Being visionary is one of the attributes and skills of a good leader. You should not only have a plan for your business in the coming years that you can put into action, but you should also be able to protect your firm from unforeseen problems that will affect it in the short and long term.

Our present lack of vision stems from the last review, in 2010, which prioritised deficit reduction above all else.” — English

Being visionary involves being able to examine what is going on around you and predicting which elements will have a negative or positive impact in the future. You make changes to your business based on this assessment, taking advantage of the opportunity or reducing the threat’s impact.

Entrepreneurs are simply those who understand that there is little difference between obstacle and opportunity and are able to turn both to their advantage.

-Victor Kiam

WHAT CAN YOU DO?

As previously stated, because most status and small businesses continue to perceive the vision of being linked with large firms, they fail to execute it for their enterprises, and as a result, they have no possibility of approaching a six-figure income.

You should ensure that you possess the ability to be visionary. It will assist you in gaining a better understanding of your surroundings and determining what is good and bad for your business in the coming years.

5 – EXPERIMENTING IS CONSIDERED A TABOO:

Starting your business on the safe side is a good idea. However, being excessively cautious is not a smart idea. When you’re in business, you should experiment to discover how you can push your company to new heights.

Maintaining a narrow domain will limit your and your business’s scope, and this is not the way to get six-figure assignments. You’ll need to be creative and try something new, most likely something that has never been done before. However, if that proves to be completely ludicrous, at the very least try something new. Break out of your shell to see what’s new and how you may use it to your advantage. And you’ll at least try to mitigate the causes of business failures.

Men acquire a particular quality by constantly acting a particular way . . . you become just by performing just actions, temperate by performing temperate actions, brave by performing brave actions. – Aristotle

WHAT CAN YOU DO?

In fact, you should concentrate on your assets. They’ll assist you in determining the best region to experiment in. It will assist you in developing a core competency for your company while also sharpening your present talents.

Unfortunately, this is the businesses’ final priority these days, which is why they perform at a substandard level throughout their lives. Have you heard about some of the major corporations, particularly the technology behemoths? How they think beyond the box, and it is due of their efforts that we are experiencing fantastic technological advances, and this is the sole reason why these corporations have been generating such large sums of money on a yearly basis.

That is something you can accomplish as well. The key is to try new things. You can take smaller risks if you have little finances, but beginning a traditional business and expecting it to create enough profit to fulfil your monthly needs is not something to look forward to. Just think about it!

6 – LACK OF AGILITY:

You, like the rest of the world, should be dynamic. However, young entrepreneurs and small business owners do not believe this, and this is one of the leading causes of business failure. You would have written a business strategy as a startup. This paper is crucial when it comes to providing rules for business operations and operations, but that does not imply you should follow it word for word. However, most organisations make the error of using either a business strategy or their original working style as a guiding factor. This, without a doubt, encourages people to stick to their current wage.

You must be adaptable in order to flourish in the corporate world. You must be able to take advantage of shifting circumstances. This will assist you in getting the most out of your company. This demonstrates your ability to adapt yourself and your business to shifting circumstances.

WHAT CAN YOU DO?

But there’s more to it than that; agility may also be observed in the company’s internal operations. Long hierarchies and complicated procedures aren’t likely to exist in today’s environment. This is why you must simplify your company’s internal operations as well. You will be in a better position to satisfy your customers as a result of it. Furthermore, the agility of internal processes will make it easier for you to respond to external circumstances and better capitalise on opportunities that arise. You’ll be able to overcome one of the main causes of business failure.

7 – IGNORING THE LITTLE WINS:

As a general rule, getting a six-figure job necessitates doing something significant every month, with the goal of obtaining a six-figure income in a year or less. Is that, however, feasible? No, that is not the case. You can find one bog opportunity and seize it for success as a business, but it isn’t achievable every month. If you want to increase your revenue, you’ll need to do something different, something better, yet failing to do so will maintain you in the same place. So, don’t you think it’s one of the reasons for the company’s downfall or, at the very least, its stagnant growth? It certainly is.

WHAT CAN YOU DO?

So, in order to hit the six-figure job threshold, you need concentrate on smaller tasks that will result in a minor but consistent gain in income or business growth in some way. For example, if you want to improve customer relationship management, you might not need new resources because current staff can assist you. However, improving client relationships will undoubtedly encourage them to return to you, so enhancing your company’s total retention.

“Satisfied customer is the best source of advertisement” ― G.S. Alag

Isn’t this strategy beneficial because it will promote positive word of mouth, hence increasing the likelihood that additional clients will become a member of your firm as a result of references (even without spending the marketing budget)?

“The customers perception is your reality. What they think about your products , MATTER. If you dont put your customers perception first, THE GAME IS OVER.” ― Sharfaraz Ahmed

Most firms overlook the small things that can bring them cash in favour of focusing solely on acquiring huge opportunities.

CONCLUSION: [ 7 REASONS MOST BUSINESSES DON’T REACH 6 FIGURES ]

These seven reasons for business failure discussed above are the most common reasons why firms fail to make six figures. The majority of the time, we discovered that business owners are unaware of their own capabilities, or that they do not recognise these flaws as true disadvantages. So, if you’re a small business owner looking to live the life of your dreams while earning a good living, strive to overcome these flaws. We are confident that overcoming these flaws and replacing them with the suggestions above will result in improved results.

If you have a strategy for getting everything done, please share it with us so that our other readers can benefit from it as well.

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