Why Businesses Fail

The Small Business Association states that 30% of new businesses fail during the first two years, 50% during the first five years, and 66% during the first ten years. So why do these businesses fail? Why is it that even if they make it past the first couple years, the odds of them failing goes up even more? The way consumers purchase products and the way companies market those products to consumers has changed dramatically over the last couple years. This means that every step in a businesses’ process, from marketing the product, to manufacturing the product, and finally to delivering the products to the customer and ensuring their satisfaction, has become increasingly important to that businesses’ success. In considering today’s market and consumer marketability, we have established the top 3 reasons why businesses fail today…

Not Adapting to Change

The most important reason why businesses are failing today is because they are not adapting to changes in the industry, economy, or consumers. New companies are emerging every day and in every industry, and today more than ever before, these new businesses have almost equal opportunity of surviving, if not better opportunity, than companies that have been around for years. Customer loyalty has dropped dramatically as customers are more informed about which product or brand is actually better than the other. Customers in previous years, such as Generation X, simply chose the brands they were most familiar with and stuck with that, causing businesses to depend on customer loyalty. With Millennials and Generation Zers, customers are actually turning their products over and looking at the ingredients, looking up brand ethicality, and so on.

Businesses are failing because they are not adapting to these changes. Utilizing new technologies to quicken business processes, using social media marketing rather than traditional advertisements, and constantly improving and maintaining brand image is only a couple of the ways businesses need to be adapting to these recent changes.

Poor Management

The second most common reason businesses fail is because of poor management. This does not just mean from an upper-level stance, but lower-level management as well. Ensuring that everyone involved in your business, both externally and internally, knows your business inside and out is extremely important in ensuring management is aligned throughout the company. This includes knowing what the business stands for, the goals of the business, and the reason your business was created. Many companies do this by telling everyone who begins working for the business, the history of how the business began and why, as well as accenting on the importance of abiding by the company norms. This allows every individual inside and outside of the company, to be aware of how they should be operating, and how people under them should be operating as well, leading to improved management overall.

Unsustainable Competitive Advantage

Competitive advantages are becoming extremely difficult to maintain today as more and more businesses are entering the market, with increased chance of success. A business can no longer rely on one competitive advantage, such as a successful product, to maintain their business’ success. Companies with sustainable competitive advantages are not only consistently ensuring their product is the best on the market, but ensuring their brand is constantly improving their processes ethically and financially. This ensures that even if a new product comes out on the market, it is in direct competition with your own product as you’ve been consistently innovating and improving it. This also ensures that if a new company comes out that is ethically attractive and financially stable, you have also maintained your brand’s image and effectively improved your processes as well.

The key to ensuring your business does not fail is to constantly act like it is a brand new business. No matter how long your business has been around, whether it’s 5 years or 35 years, if you treat your business like you just started it up yesterday, you’ll be constantly working to improve it and therefore never fall behind your competition. This is evolved around your own motivation to be the best in the business and the perseverance you have, and your employees have, in consistently and effectively improving your business.

If your business could use some improving, click here to check out our MaxExposure products on our website today!

Top 3 Apps for Small Businesses

With all the new and emerging technologies and applications today, starting up and maintaining businesses has become much easier to manage. There are now applications used for various functions from organizing business tasks, to keeping track of paychecks, and even to measuring and reporting a company’s current success and status. Below are three of the best applications for your small business or organization!

Evernote

Evernote is a downloadable software, or mobile application, which contains note taking, organizing, and archiving capabilities. Evernote allows for small businesses to maintain fluidity and organization throughout the business by giving visibility into projects, work flows, and deadlines across various employees in the business. This allows business people to work better and more efficiently together by ensuring everyone in the company, or in a specific department of the company, has up-to-date information.

Zoom

Zoom video conferencing is another software application which greatly improves business management and functions for small to medium-sized businesses. Zoom allows for HD video conferencing with simultaneous screen sharing and white-boarding aimed to greatly improve group collaboration long distance. If a business partner or employee is traveling or out-of-state for a conference, networking, and so on, they are still able to easily collaborate and communicate with their fellow employees, allowing business to maintain speed in business projects.

Square

Square is another application that has greatly improved business efficiency, as well as the customer experience. Square allows for online payments to be made right from a smartphone, removing the need for cash registers and computer systems at the checkout. The application also allows businesses to manage inventory, customer directories, and digital receipts. You can also send invoices to customers, save cards on file, use Square to sell online off of your company’s website, and it even works with no signal so there are no disruptions or inconveniences!

These applications allow for business management to be made easy, improving your business efficiency and success, and overall customer satisfaction as well. Utilizing these apps, along with the various social media applications to market and manage your business will allow your business to continuously expand and improve every year.
Click here to check out our MaxExposure products and get started on improving your business today!

A Case Study on Handling a BAD Review – Tips from Clients

I know one thing that all business owners have in common… They HATE a bad review.

While many clients use our Review Manager™ system to direct positive reviews online, and negative reviews to a private email, some customers still find their way to the public review sites with a bad review.

The importance of responding to reviews:

It is important to respond to all reviews, both positive and negative, which we do for our clients, but one of our clients took matters into his own hands and found incredible results.

Bobby LeRose, owner of Bobby Q’s Cue & Co. in Norwalk CT hates reviews more than most business owners, feeling they were often unfounded and harsher than they needed to be. Many times wanting to “lash out” at the reviewer, which is never a good idea, he agreed to allow the MaxExposure Team to handle his review responses, which took the emotion out of the process for him.

After we responded, he randomly did some research, to find out why the review was so bad. In the process, he would find the reviewer’s name from their credit card info or on social media platforms such as Facebook, noticing that many times they would have “a mutual friend” (most restaurateurs know someone who knows someone you know) and then in an attempt to win them back, he reached out to them privately via direct message through Facebook.

Instead of reacting with an equally negative response, Bobby left them an apology for their situation and a very polite invitation to connect with him personally, to make whatever the issue was “right”. In some cases, he called the customer and spoke with them live online.

The response has been phenomenal…

In all cases (and there have only been a few), the reviews were either deleted all together, or changed from 1 star to 5 stars, with updated comments sharing their pleasure and surprise that an owner would take the time to reach out personally. The end result was a happy customer and a better star rating on sites like Yelp and Facebook.

Regardless of your business, reviews are here to stay. They are necessary today for customers to know more about you. How we respond to them, and the best way to handle them, is critical to any business in the “New Economy” of online consumer engagement.  Bobby Q’s has found a way to make them right, and protect his excellent reputation online.

If you want more information on our Review Manger™ System or Review Response Program, contact me at www.MaxExposureSocialMedia.com/Joe-Grushkin

About the Author:

JGJoe Grushkin is a serial entrepreneur for over 35 years. Currently, as the CEO, President and Founder of MaxExposure Social Media, the premier Social Media & Reputation Management Firm on North America, he is growing the business with effective leadership skills and developing a management team to lead in the future. MaxExposure assists small and media sized local businesses in over 80 industries. More information is available at www.MaxExposureSocialMedia.com