Why do Businesses Fail Within The First Three Years
                     WELCOME
TO
Why do  Businesses 
Fail  Within The First  
Three Years?
All businesses are associated with risks. Considering the number of odds  
involved, every good entrepreneur would want to know the probability of  
success before investing everything into the endeavor. This may or may not go as 
 expected. Knowing the reasonable number of odds, it gets difficult to determine  
all the factors involved in the failure.
Before we jump onto the major reasons that are the main culprit behind the  
downfall of businesses, let us see the factors that actually affect the businesses. 
 Unable to match the dynamic nature, not able to meet the perpetual changes 
in  the market demands, and failing to cope up with the rapid transformation in 
the  ways of doing business are some of the reasons behind the non-
performance of  businesses. Hence they fail within the first three years.
As per the figures by the Bureau of Labor Statistics, reported by Fundera, around  
20% small businesses fail within the first year. About 30% businesses fail by the  
end of second year and by the time businesses reach the fifth year, about half of  
them succumb to the failure.
The above-mentioned statistics are testament to the fact that businesses fail in  
their initial year itself. Besides, there are other major factors too that are  
responsible for the collapse of the businesses:
Seeking perfection
Almost every entrepreneur starts a business with a thought to 
deliver nothing but  perfection. Exactly, this is where most of the 
business owners go wrong. This is  because, when they work to get 
perfect in a task, they tend to set unrealistic goals  and put a lot of 
pressure which ultimately leads to inefficiency and the downfall.
They set high standards for themselves which gets difficult to 
achieve in the  beginning. Eventually, this leads to procrastination 
and the ideas fail to reach the  market.
Wanting  to get it all in one shot
There is no denying the fact that a business owner must have 
knowledge of every  aspect of his work. But if entrepreneurs are 
unable to let go and delegate the tasks,  there are high chances for 
them to miss out on working on the key objectives. If you  are quite a 
fresher, you might not be able to afford a team. But if this continues 
for  a long time, you might even lose early on in the game. Trying to do 
it all by yourself  may turn out to be the biggest block in gaining 
success.
Money is the only driving force
Probably, most of the entrepreneurs start with this thought – Being an 
owner will  help them make more money. This is considerably true 
because it is believed that  businesses offer uncapped possibilities. 
Even though it might be correct, this  cannot be denied that operating 
a business is hard. Also, vigorous efforts and  showing up on a regular 
basis are required to get better results. Even this approach  may not 
guarantee you the desired results all the time. But, if money will only 
be  the driving force, it might get difficult to stay committed and build 
an empire.
A Complicated Business Plan
Setting up ambiguous and vague plans leads to poor management. 
Young  entrepreneurs with less experience and little knowledge often 
end up creating  complicated business plans. Such poorly drafted 
plans take them nowhere but set  complex benchmarks which gets 
difficult to achieve. Having a strong business  model would act as a 
backbone. Even if you go astray anytime while running the  business, 
the plan would bring you back on track and help you reach your goal. 
So,  having a plan with clear day-to-day goals would do the job better 
for the business  owners.
Poor Communication Strategy
Good communication forms the foundation of all businesses. Without 
open  communication, businesses fail to deliver the message in a clear 
manner. Just  communicating is not enough, having it in a two-way 
manner is important. But, wait a  minute. Do you know that this is still 
not enough to take your business to the desired  heights? To keep up the 
pace with the rest of the world, it is essential to create a strong  online 
presence of the business. This is possible only by adopting the best 
digital  marketing practices.
If you are a business entrepreneur and are unable to reach wider audience, 
then you  certainly need to market your business online to target wider 
audience. You can do this by  hiring the services of the Big Unit, the best dig
ital marketing agency in Melbourne.
Wrong utilization of the investments
Under utilization or over utilization of funds in the primary stage of the 
business can prove  to be one of the biggest mistakes. After businesses 
invest hefty amounts, the owners are  left with no backup to rise, after they 
fall. It is rightly said, “NO RISK, NO GAIN”, but  remember blind risks only 
show you a pitfall. On the other hand, taking calculative risks  can save your 
business from setbacks. Besides the above-mentioned factors, the biggest  
that the majority of entrepreneurs ignore is marketing their business online. 
Looking into  the changing patterns, it is important for businesses to jump 
onto the ongoing digital  marketing trend, and explore the untapped 
opportunities. So, if you are looking forward to  taking your business to 
heights, then adopt unique digital marketing strategies. Contact  the Big 
Unit, the best digital marketing agency in Australia and get the work started.
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