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!

5 Reasons Why Every Business Should Have a Company Video

We’ve all visited company websites to learn more about them, but felt frustrated because the information provided is either too dense or too difficult to find. One thing a business can do to avoid this from happening is by providing their customers with a company video. Video is much more powerful than spoken or written word as people are more likely to absorb information when it is visually presented to them. Through the use of a professionally made video, a company can portray themselves in a positive light which will attract new customers and keep the old ones coming back for more.

pexels-photo.jpgA study done a few years ago showed that Americans watched 21 billion videos online in one year, and 79 percent of people with an online presence frequently watch videos. This proves that today, more than ever before, it is crucial to utilize this feature to reach a large audience. These videos do not only have to show up on a company’s website. They can be posted on several different social media platforms including Facebook, Instagram, and YouTube.

People today want information, but they want it fast. What better way to do this than through a video? Below are five of the most important reasons why every business should have a company video…

     1. It  gives your company a face

Providing customers with a video about your company is a great way to create an image or help build onto the one you already have. Customers will gain trust and be more loyal if they can visually see what your company is all about and have a tangible experience. The video itself should include the core values and mission to quickly and effectively get your message across.

     2. It shows your customers you’re the real deal

Having a video not only provides your customers with quick and relevant information but it also reflects on the legitimacy of the company. When I see that a company website has a video, I automatically categorize them as a business that takes their work seriously and has the resources to market their company effectively. High quality videos show that your company is up-to-date and relevant, allowing customers to trust the quality of your product or service.

     3. It helps give a personal touch

pexels-photo-450271.jpegConnecting to your customers and making them feel like they are valued is one way your company can separate themselves from other businesses, and a video can help you do that. A video helps create a bond with your viewers by being personal and authentic. By including actual staff or workers from the business, it not only shows the company’s personality but allows customers to put a face to the organization itself.

     4. It can set you apart from your competition

Not only will having a high quality video show your customers you are serious and committed to what you do, but it will also set you apart from the competition. Many other companies, especially direct competitors, may not have gone the extra mile to make a video, and believe me your customers will notice the difference and appreciate the time and effort that went into it. Not only will this video set you apart but it will also help you to be remembered

     5. It helps to actively engage customers

pexels-photo-838413.jpegThere are two types of ways people can be engaged, passively or actively. Passive engagement is when someone is looking over something but not really absorbing the information. This could be when they are reading the long “About Us” section on a website. Actively engaged people are absorbing information by taking part in some kind of action or visual stimulation. People learn and remember information better if they are actively engaged, and this active engagement can be accomplished through the use of company videos. 

At MaxExposure Social Media we offer a service that can make a company video for your business. The BetterVideo solution combines client provided or stock imagery, royalty-free music, professionally written script and recorded voice-over to create an informative and visually captivating 60-second video. If you are interested in this or would like to learn more about this service feel free to visit our website, http://www.maxexposuresocialmedia.com, or contact us!