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10 Reasons Most Small Businesses Fail and How You Can Buck the Trend

10 Reasons Most Small Businesses Fail and How You Can Buck the Trend

It is estimated that as much as 33% of US small businesses will fail in the first two years. While this might seem disheartening at first glance, it’s probably not as bad as it seems considering the number of entrepreneurs who experience runaway success.

In this article, we’ll look at the ten most common reasons for small business failures, as well as how you can position your company to buck the trend.

1. Lack of Capital

Most entrepreneurs start out with a brilliant business idea. However, many companies are not equipped with enough capital to start or take the company to the next level. The sad truth is that without the right capital injection, many great ideas are doomed to wither away after a couple of months.

The key to solving this problem is to invest the time in determining the costs associated with starting and operating your business. Try not to overstate profits but instead, do the necessary research to make sure you have the working capital that is needed to sustain the business.

The next step is to secure your funding. Many entrepreneurs will turn to family and friends to avoid having to dilute their equity by getting a private investor. However, private loans are an excellent way to ensure continued funding for the business, especially in the start-up months.

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2. Cash Flow Problems

Having just an adequate amount of funds is inadequate. Not having sufficient finances at the right time is a major problem for many small businesses. Handling cash flow is essential to keeping the doors open. However, due to unforeseen events like late payments from clients, unexpected costs, or mistakes in forecasting, a huge chunk of small businesses frequently find themselves running into cash flow issues.

To overcome this common problem, you will need to put in the time to develop an in-depth cash flow forecast; this can be a time-consuming and intricate procedure, so utilizing technology to automate this process can be helpful. Additionally, it’s good to have a ‘cushion’, so if unexpected expenditures turn up, which they inevitably do, you’ll be able to cover them. Planning is the key to overcoming cash flow issues in a small business.

3. Issues with Delegation

Some entrepreneurs are so personally invested in their vision that they feel that they are the only ones who can do it right. Not only is this impossible in many cases, but it is also inefficient and causes burnout. A business owner who fails to train and delegate could face a serious problem if he is out sick or has an emergency.

Entrepreneurs must learn to invest in a team of staff members who can be trusted. The key is to train and then delegate. Effective delegating will leave the business owner to focus more on growing the business and identifying opportunities.

4. Ignoring the Competition

While business competition is healthy for the economy, they can be a threat to the small business owner. An entrepreneur who does not understand his rival may be setting up his business for failure. Often a company is not aware of the competition in their niche until it is too late.

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To maintain your competitive edge, make certain to do an analysis of the competitive landscape. Additionally, continuously monitoring your competitors will enable you to benchmark yourself versus them, learn from their errors, and most importantly not fall behind.

5. Inadequate Customer Demand

Many small businesses think that the product or service that they provide is the best and never consider whether there will be a market for the business.

It is important to conduct thorough marketing research and make sure that your prospective consumers desire what you’re offering. In a lot of cases, it may simply be a matter of tweaking your product or service, so it aligns with what your target audience wants.

6. Failure to Advertise

It doesn’t matter if you have the very best product on the market if your clients do not know about it. With the increase in internet marketing, small businesses who do not invest in digital means of promoting their products and services may be setting themselves up for failure.

Advertising is not always expensive. There are many low-cost options available to small business owners on a budget. There are also free alternatives available such as social media and email marketing. The key is to research and find out the combination of promotional products and platform that will be best for your business and your target audience.

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7. Business Idea Isn’t Profitable

Unprofitable ideas are often the result of a good initial business proposition, but soft financials. If the client acquisition costs are higher than the income that they generate, then the business model is either incomplete or just doesn’t make good sense.

The solution to this problem is planning and research. Before starting a business ensure you understand the cost of customer acquisition and how much you are willing to pay to maintain a profit. If your research reveals a high cost to get the product or service into the hands of the customer, consider ways in which you can cut cost or increase your income.

8. Not Going Digital

With a growing number of people spending time online, small companies cannot make the mistake of only focusing on the brick and mortar of the business. Many companies are now finding success in the virtual marketplace.

At the most basic level, if a small business wants to be successful, it must maintain a professional website. In the era of social media and digital marketing, a small business owner may find great opportunities to promote his products and services to clients all over the world.

9. Poor Leadership and Management

Poor leadership and management can be the demise of many small businesses. When individuals at the top who are in charge of coordinating everything, aren’t doing their jobs properly, the rest of the firm falls apart too.

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A successful business requires leaders and managers that can influence, motivate staff members, and make certain things are working smoothly. It is important to invest in your human resources with training.

10. Changes in the Marketplace

Sometimes small business failure has nothing to do with the day to day operations of the business, but external factors such as the economy or the presence of a brand-new disruptive technology that makes your business outdated.

Not all external factors are out of your control. Preparation, research, and planning can help a small business owner adjust to a changing marketplace.

Small business success is possible despite the daunting statistics. Being armed with information as to the pitfalls many entrepreneurs fall victim to is a good start to making your business successful.

Featured photo credit: rebrn.com via i.imgur.com

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Published on August 4, 2020

36 Important Resume Skills (For All Types of Jobs)

36 Important Resume Skills (For All Types of Jobs)

Most jobs require specialized skills. At the same time, there are a lot of resume skills that apply across the board.

If you’re on the hunt for a new job, give your resume a refresh. Employers want to know: Can you communicate effectively? Are you easy to get along with? Can you manage your time effectively?

Remember, you may not get a second look. Use your resume to make a great first impression.

Holistic ability is what employers want to see when hiring. These resume skills can make you a top pick regardless of what role you’re applying for.

Communication

Being properly understood is critical. On any team, you must be able to relay and interpret messages with speed and precision. How you describe yourself, the concision of your phrasings, and the layout of your resume are great ways to showcase these skills.

1. Writing

Whether it’s emails or official documents, writing skills are essential for candidates in any industry. Clear, concise phrasings minimize misunderstandings and save the recipient time. This is probably one of the most important resume skills.

2. Verbal Communication

Speaking clearly and eloquently is one of the first things a hiring manager will note in an interview. Communicating over the phone is commonplace in business. Outline this skill on your resume, and they’ll invite you in to listen for themselves. This is easily one of the most important resume skills in most industries.

3. Presentation

Sales pitches and company meetings may include presentations, which require special communication skills. Being able to spearhead and properly carry out a presentation shows organization and resolve.

4. Multilingualism

Knowing more than one language can open doors for you and the business you represent.[1] Being able to speak another language allows your company to serve a whole new demographic.

5. Reading Comprehension

At any job, employee handbooks, company newsletters, and emails will come your way. Being able to decipher them quickly and effectively is an important resume skill. This goes hand in hand with having excellent writing skills.

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Tech Savvy

Technology is evolving rapidly, especially in the business world. Be sure to mention the technologies you’re familiar with on your resume, even if you don’t expect to use them daily.

6. Social Media

Almost everyone has some form of social media these days. Companies use platforms like LinkedIn and Facebook to reach new audiences, provide customer service, and build brand loyalty.

7. Operating Systems

Can you use a Mac? What about a PC? Most jobs today require the use of a computer. Prior experience navigating common operating systems will help you acclimate much more quickly. This has become an important resume skill ever since the start of the information age.

8. Microsoft Office

Of all the software in the world, Microsoft’s Office suite might be the most popular. Word, Excel, Powerpoint, and Outlook are widely used in the business world. Having this as part of your resume skills is very helpful especially in certain industries.

9. Job-Specific Programs

Did you get the hang of HubSpot in your last role? Is Slack something you’ve mastered? Be sure to mention them on your list of resume skills. These demonstrate that you can pick up new tools quickly.

Interpersonal Skills

Despite the rise in technology, businesses are run by people. Working with and for people means you need to be able to handle yourself with poise in different social settings. Highlight roles and situations on your resume that involved tricky conversations.

10. Customer Service

No company can succeed without its customers. Being able to treat customers with respect and attention is an absolute must for any applicant. Specific industries regard this as the most important resume skill their prospective employees should have.

11. Active Listening

Listening is an underrated skill, especially for leaders.[2] If you can’t listen to other people, you’ll struggle to work as part of a team.

12. Sense of Humor

You might wonder why having a sense of humor is a part of your resume skills. Humor is important for building rapport, but getting it right in the workplace can be tough. Everyone loves someone who is entertaining and can lighten the mood. On the other hand, people are turned off by immaturity and inappropriate jokes.

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13. Conflict Resolution

A customer stomps up to your desk and starts yelling about a problem he or she is having – how do you handle this situation? The right approach is to work to resolve the situation, not to escalate or avoid it.

Teamwork

One of the best parts of any job is the bonds you build with your co-workers. Fostering healthy relationships can make the workspace more enjoyable for everyone.

14. Collaboration

Whatever your line of work, chances are good that you’ll be working with others. Being able to collaborate effectively with them is critical if the whole team is to hit its goals. You can use various apps and tools available to help you collaborate with your team.

15. Leadership

Even if the title of the job you’re applying to isn’t “manager” or “executive,” there will still be moments when it’s your turn to lead. Prove that you’re up to the challenge, and you’ll be looked at as a long-term asset. Listing this as one of your resume skills is certainly an eye-catcher for most.

16. Reliability

Work isn’t always easy or fun. You have to be willing to pull your weight, even when times are hard. Otherwise, your co-workers won’t feel as if they can count on you. Reliability is important in maintaining the cohesion of a team. You should let people know that they can rely on you.

17. Transparency

To work as a team, members must be willing to share information with each other. Are you willing to own up to your mistakes, share your challenges, and accept consequences like an adult? Let them know that you’re transparent and reliable.

Personal Traits

Your resume is about selling yourself, not just your education and work history. The good news is, your “soft” skills are a great opportunity to differentiate yourself. Use bullets beneath your past experiences to prove you have them.

18. Adaptability

In any role, you’ll need to adjust to new procedures, rules, and work environments. Remember, these are always subject to change. Being able to adapt ensures every transition goes smoothly.

19. Proactivity

An autonomous employee can get work done without being instructed every step of the way. Orientation is one thing; taking on challenges of your own accord is another. Being proactive is an essential resume skill, especially if you’re eyeing for managerial roles in the future.

20. Problem-Solving

When problems arise, can you come up with appropriate solutions? Being able to address your own problems makes your manager’s life easier and minimizes micro-management. Problem-solving is an important yet often overlooked resume skill.

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21. Creativity

Can you think outside of the box? Even roles that aren’t “creative,” strictly speaking, require creative thinking. Creativity also helps in your ability to solve problems.

22. Organization

Staying organized makes you more efficient and reduces the risk of mistakes. Organization skills make life easier not just for you, but also for other members of your team. This makes it an important skill to put in your list of resume skills.

23. Work Ethic

Every company wants hard workers on its team. You’re applying for employment after all, not a place to lounge around. Putting this on your list of resume skills is just as important as actually exhibiting it in the workplace once you’re hired.

24. Stress Management

How well do you work under stress? If you’ll be required to meet tight deadlines, you’ll have to prove you can handle the heat.

25. Attention Management

Whether you’re developing a partnership or writing a blog post, attention to detail makes all the difference. People who sweat the details do better work and tend to spot problems before they arise. Use Maura Thomas’s 4 Quadrants of Attention Management as a guide to managing attention.[3]

26. Time Management

Time is money. The better you are at using company time, the more valuable you’ll be. Show that you can make every second count. Managing your time also means being punctual. No employer wants to deal with a team member who’s constantly tardy. This is commonly included in most people’s resume skills, but not everyone lives up to it.

27. Patience

Things won’t always go your way. Can you calmly work through tough situations? If not, you’ll struggle with everything from sales to customer service to engineering.

28. Gratitude

When things do go your way, are you gracious? Simply being grateful can help you build real relationships.[4] This also helps foster a better team atmosphere.

29. Learning

Employers want to invest in people who are looking to grow. Whether you love to take online courses, read, or experiment with hobbies, make sure you show you’re willing to try new things.

30. Physical Capability

Many job postings have the classic line, “must be able to lift X amount of pounds” or “must be able to stand for X hours per day.” Play up past positions that required you to do physical labor.

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31. Research

How easily can you dig up new details about a concept? Research skills are critical for marketing, business analysis, writing, account management, and more.

32. Money Handling

Being able to count bills quickly and accurately is important at any company with a brick-and-mortar storefront. Integrity and honesty are key when you’re running the cash register or reconciling bank statements.

Commitment

To employers, every new hire represents an investment. Are you worth investing in? Prove it. Employers need to see signs of commitment before they bring you on board.

33. Longevity

Hiring managers love to see long tenures on your resume. This suggests that you’re in it for the long haul, not just passing through for a quick buck.

34. Fidelity

For an employer-employee relationship to work, there has to be trust. Employers tend to find out when someone is hiding side gig or sharing information they shouldn’t be. References from past employers can prove that you’re loyal to companies that hire you.

35. Obedience

You won’t agree with every choice your employer makes. With that said, you have to respect your role as an employee. Obedience is about doing what your leader decides is best, even if you have a different perspective.

36. Flexibility

Life is full of surprises. A month into your new job, your role could change entirely. Flexible people can roll with the punches.

Final Words

Perform a self-audit: Which of these skills will your potential employer want to see? Add them to your resume strategically, and you’ll be that much closer to your dream job.

Tips on How to Create a Great Resume

Featured photo credit: Van Tay Media via unsplash.com

Reference

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