The Real Reason For Business Failure

A lot of people would have you think that the major reason for business going under is that they have a lack of capital. Then there's others who say that the management is poor or the location ought to of been better.  90% of business owners think that there most important asset somehow has to do with; the building, the location, the computers, the staff, the knowledge, the products, policies & services that they sell, sales skills & managerial abilities that they may have.

Now don't get me wrong these things are important & will certainly contribute to the success or failure of a business, but they are definitely not the most important nor are they the most valuable not by a long shot.

You can have an MBA from the top university in the world. You can have all the funding in the world. You can have a great mindset for building a business, the best location, the greatest products, & the most motivated & well trained staff, & you can be an fabulous salesman, but as of my favourite quotes says "You can have the best product in the world, but in case you cannot promote it, it is not going to matter to somebody but yourself.''' Steve Schneider

Let me ask you a speedy query what keeps businesses alive? I'll give you a clue it starts with a "C" yep you got it customers, for a business even to be a business in the first place, that business has to have customers... there needs to be a buyer as well as a seller.

The reason behind this is that there's much more of them than there's of you. Secondly the act as a great referral for new customers (testimonials somebody??). & Third you can get a great lifetime value out of customer.

But on the other hand, in case you are nice at promotion your business & you have a great base of loyal customers, individuals who know & trust you, individuals who are now your friends, individuals who you have developed a great professional relationship with over time, who are already doing business with you, & who are already sold on the job you are doing for them, you have an fabulous sales force which can bring you much more business than you could ever do by yourself.

So if your customers are your most important & priceless business asset, knowing how to cost-effectively attract them in huge numbers, then profitably convert them in to loyal, renewing or repurchasing customers who won't hesitate in referring others to you, is the most important business skill you can possess.