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Top Five Reasons Why a Lot of Businesses Fail

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business failure

Being an entrepreneur and running a business is not for a faint-hearted. Entrepreneurship is a risky venture. Every successful business owner probably sees success because he can mitigate the risks while simultaneously providing the customers with a product or a service, which meets and exceeds their demands.  

Even though there is a myriad of small businesses in this broad spectrum of industry who perform exceedingly well and are profitable repeatedly, year after year, there is still a large number of companies that fail. 

Following a leading study by the SBA, approximately one-tenth of the small businesses fail in the first year itself, half of them fail by the end of five years, and less than one-third of them survive longer than a decade. To secure an established or a new business, it is vital to gauge the reasons that can lead a company to the path of failure. Further, you need to understand and seek ways to overcome the obstacles. Here, in this article, we will discuss some of the common reasons why a business fails. Let us address these reasons one by one.  

Failure to Deliver Value

For a business to be successful, it needs to deliver a certain value to the customers. Danny, an educator who offers assignment help Melbourne services, comments that the most successful business in the world are those that provide maximum value. Well, yes, as simple and straightforward it can get, it is 100% true. So, as an entrepreneur, your constant effort should be to over-deliver and under-promise. Regardless of how bad the situation is, always over-deliver. Trust us when we say this, whoever starts a business to make quick money is on the pathway of failure. At all times, your focus should be on the value proposition. If you fail to offer your customers as much, 

or more value than the competitors, you need to work on your approach because you will not have any competitive edge if you do not give your customer’s enough value.

Now you may ask how you can add value? Firstly, the right value creates the right buzz. Let us try to understand this with an example. 

You receive a phenomenal product and service, won’t that make you happy? There is a good chance that you will share this experience with your friends or family members. More so, if it came at a pocket-friendly price, you will go gaga about the company and their product. Why? It is because you have found a true value-deliverer. Hence, bear in mind, there is nothing superior to the value. 

Failure to Engage the Audience

Firstly, you need to know who your target audience is, then you need to know the right way to target your audience. If you fail to engage your customers, you do not quite understand your customer’s desires or needs. More so, it also shows your obliviousness of being aware of the best way to help your customers. 

Before you start a business, you need to know: 

  1. Who are your customers?
  2. What do they need? 
  3. Is it the same as what they want? 
  4. Does this need help them achieve a certain status in society? 
  5. Is it to invoke emotion? 
  6. Will your product solve their problems? 

Bill, who offers engineering assignment help services, comments that as a business, if you fail to address your customer’s needs and desires, you do not know your customer enough. Additionally, you will not be able to sell your product or service if you fail to give your customer what they truly need. So, how can you find this out? Conduct market surveys, campaigns, or research the market to know your target audience. Find out what they need, and ensure that what you offer helps them overcome their pain-points. It is one sure-shot way to prevent your business from failing. 

No Transparency and Authenticity

Businesses that are not transparent and lack authenticity will certainly fail. If not today, they maybe tomorrow. If you do not cater to your customers’ needs and continually focus on the wrong things, you will soon lose your customer’s trust. To ensure that this does not happen, you need to focus on being authentic and transparent with your customers. Always try to provide more than a customer can take or expects. Honestly, it is a rare thing for a business to do, but it is one thing that will never let you fail.

Failing to Optimize the Conversions

At times, an entrepreneur is a charge of more things that they can manage. Consequently, they end up ignoring the most pivotal things. One such thing is the failure to optimize the conversions. If there are not enough conversions, regardless of what the business does, it will be hard for it to survive in the long run, comments Stevie, an online java tutorWe agree with Stevie, but this is particularly important when the business’s burn rate is high. In this case, trying to save the business by pitching in more money will do nothing. It would be best if you addressed the conversions early on to ensure that there is a positive ROI. It is pivotal for business sustainability.

Also, please bear in mind that you cannot solely rely on organic methods, such as SEO, as sans conversion optimization, you are only wasting your time. Even the big businesses need to work towards income-generation and continually work towards the different conversion-optimizing activities while simultaneously establishing a solid customer base. If you fail to do so, it is only a matter of time for you. There is a good chance that you won’t survive after all your money runs out. 

Inability to Device an Efficient Sales Funnel

For every business owner, the primary goal is to work on building an effective sales funnel. Automated selling machines lower the friction during the whole sales process and put most of the business processes on autopilot. It helps the business owners boost things, such as traffic sources, and educate them via webinars or eBooks.

Sales funnel is one of the ideal ways for a business to establish a relationship with the customer via email warming campaigns. If truth be told, it is challenging to sell something to a cold audience. The audience needs proof that you have served others before, and those people have been happy with your services. For this, your customer testimonials and reviews will come in handy.

In this case, the more prominent brands will have it easy. It is because they have been in the market for a while and are trusted. Overall, a sales funnel helps develop a relationship of the business with their customer. As part of this relationship, a customer can relate to your journey and story. 

So, these are the top five reasons why a lot of businesses fail. If you have any more reasons or suggestions to add to the list, or have any questions, please let us know in the comment box below.

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Business

Most Common Unethical Business Practices

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Most Common Unethical Business Practices

Running a business is one of the most challenging activities one can undertake. The pressure that the job exerts, combined with the tremendous consequences that failure can bring, is one of the reasons why businesses look for shortcuts. Unfortunately, this leads the management to engage in unethical practices to avoid sinking the company. Let us look at some of the most common unethical business practices conducted by businesses today.

Including Hidden Terms in User Agreements

This is a practice that is very rife in the tech world. Whenever you choose to download any app, you will be required to click on the agree button in the terms and agreement section so you can be allowed to download the applications. Software companies go as far as declining to permit you to download the app if you do not agree to these terms and conditions.

While this is not malpractice or unethical behavior, these companies make a point to make these terms and conditions section so long that they discourage the end-user from going through all the pages therein. It is at this juncture that they get the opportunity to include undesirable requirements.

For instance, a software company can slip in a condition that gives them the right to access your data and use it for their benefit. While some might argue that the blame falls on the user for not going through the whole terms and conditions document, the fact that the companies make these documents as long as possible to dissuade the user from doing so is what construes as unethical behavior.  

Even though tech companies might be engaging in some sneaky, unethical, but legal behavior to maximize their profits, these companies have created products that have revolutionized life as we know. A good example is the invention of the internet.

Apart from making instant communication affordable and universal, the internet has disrupted the education system as we know it. It has made it elementary for students to source reading material and access revolutionary tools that help them study better. On the other hand, the World Wide Web has become a refuge for struggling students. It enables them to quickly hire an expert essay writer to assist them when essay writing becomes a challenge.

Top online essay drafting companies such as Grademiners have revolutionized the game by offering much more than assignment writing help to students. The company’s website avails students worldwide of a whole host of top-notch informative blogs that provide intuitive data that helps supplement their study material.

Misleading Product Information

Marketing is the primary way through which companies get to inform the target about their product and the kind of benefits it provides. Since it is the tool that drives up sales, unscrupulous businesses go a step further and run false advertisements that exaggerate the type of benefits their product avails the consumer. This is not only illegal; it is also unethical.

Where misleading advertisements are run through TV and print media, the government can hold the said company accountable for the deceptive behavior. However, in this era of digital advertising, this can be very difficult as anyone can run a misleading advertisement online in an attempt to make a particular company look bad with minimal oversight.

Competitor Defamation

Competitor defamation is the provision of information that makes a company look bad in the consumer’s eyes. It is essential to point out that simply using a competitor’s name in an advertisement does not amount to competitor defamation. However, if the content of the ad paints an ugly picture of the competitor, then it amounts to defamation which is unethical business behavior.

A good example is when a Coca-Cola advertisement claimed that Coca-Cola’s Powerade was better than Gatorade (a product by PepsiCo), claiming that it had more electrolytes. PepsiCo sued Coca-cola on defamation grounds claiming that there no scientific research supported the extra electrolytes claim.

Accounting Malpractice

This mostly happens in public-owned companies. The purpose that any publicly owned company exists is to make profits for the investors. However, sometimes you will find the management stealing from the company and cooking the books of account to make themselves rich. These executives forget that they work for the shareholders and instead think about enriching themselves, which constitutes unethical behavior.

Bribery

This is where money (or something else of value) is given out for a business to get favors regarding a business decision. For instance, instead of the most qualified organization getting a particular tender, it is given to another company that had bribed the tenderer. This unethical and illegal behavior leads to disasters as the task in question is not performed by the most qualified person.

It is essential to point out that even though all illegal business practices are considered ethical, not all unethical business behaviors are unlawful. However, all play the same destructive role, which is misleading and scamming consumers and or shareholders.

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E-Commerce

Top 5 Tools to Integrate to Your Magento 2 Web Store

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Tools to Integrate to Your Magento 2 Web Store

It takes much effort to start an online web store, but it takes even more effort to succeed. Unfortunately, over 70% of startup companies fail approximately ten years after their launch. And even if they are successful, there is always room for improvement. Alongside other mistakes, lack of necessary tools is one of the reasons for failure. The availability of a website is huge progress, but your business should have relevant tools to achieve better results. For example, how can you store and use customer data without a CRM system or manage the inventory without ERP? Here are five must-have solutions that should be integrated with your Magento 2 web store with the help of a Magento development company.

1. CRM Systems

The role of CRM solutions for eCommerce businesses shouldn’t be underestimated. They store lots of customer data – contact information, purchase history, products of interest, and interaction history. This information can be used by the marketing and sales teams of the company. They can plan targeted promotional campaigns, send marketing emails, and provide exceptional support.

2. ERP Systems

The second must-have tool is ERP software. Companies have different departments such as production, accounting, and human resources. Each of them uses its particular system because of which duplications often happen. ERP software eliminates these duplicates and the likelihood of mistakes by connecting all these systems used by different teams. As a result, businesses can monitor customer databases, stock, orders, and accounts payable in one place. It boosts productivity, eliminates mistakes, and automates the work.

However, it should be mentioned that ERP – Magento 2 integration  isn’t an easy task. Make sure to contact a  Magento development agency to connect your website to the system smoothly. 

3. Inventory Management for Magento 2

Running an eCommerce web store is meaningless without the possibility of managing your inventory. It would help if you had a tool that handles order delivery, shipping methods, and returns. If you have warehouses in different locations, the system allows choosing the ones nearest to the delivery point. As a result, your business saves delivery costs and time. Moreover, the Magento 2 – inventory management tool integration can provide you with reports on best-selling products and most shipped destinations. It would help if you used this insight to improve your marketing campaigns.

4. Online Visibility Management Platform

You cannot ignore the need to optimize the Magento 2 web store for search engines on the Internet. All your financial investments and effort will go in vain if your website doesn’t appear in top results when someone searches for an item on Google. The optimization is an ongoing process. Online visibility management and analytical tools such as Google Analytics or SEMrush help businesses monitor the website performance. You can conduct a website audit, reveal its weaknesses and eliminate them. This way, your eCommerce website will stay on top of search results.

5. BI Tools

Customer data is a valuable resource that businesses possess. However, it’s useless if you don’t know how to utilize it. BI tools allow creating dashboards and reports to visualize the data. For example, if you provide coupons for the first purchase, you’ll see how many people claimed it and how many used it. In addition, you’ll be able to track which month or season is the most profitable one. Then, you can leverage these valuable insights and make data-driven decisions. 

Final Thoughts

The mentioned tools are must-haves for running a successful Magento 2 webs store. The technology market offers different CRM and ERP solutions, BI tools, and inventory management systems. So, regardless of your business’s peculiarities, you can find a tool that suits you best.

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Business

Why Digital Marketing Is Important in the Gaming Industry

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Digital marketing is hugely influential in helping users to get the most out of their gaming sessions

Nowadays it is common knowledge that a brand’s livelihood often depends on how well it is marketed to its consumers. And in the tech-savvy world in which we live, most of that promotional activity happens in the online environment, thus creating digital marketing. Although it may not be the first industry to come to mind when speaking about the need for this type of marketing, the business of gaming also relies on successful marketing tools to grow and reap continuous revenue.

These virtual efforts to spread the word about a gaming brand are done in many different forms, but in this article we will outline a few specific ways in which digital marketing presents itself in the industry, examining the benefits of these strategies and why gaming brands should keep employing them.

Stories Really Do Sell

Storytelling is a very powerful asset in the toolbox of marketing strategies. A brand’s ability to make a campaign come to life through the help of a compelling narration will never go out of style. In the gaming industry this has been done countless times and has garnered real monetary results. For example, in a successful marketing campaign entitled “Believe” for the release of Halo 3, the franchise took the fiction of a video game and made it real by telling a story about a historical hero in their commercial. In this way, consumers were even more inspired to go to the shelves and purchase the first-person shooter title to see the game with their own eyes. Plastered all over YouTube as well as many other websites and blogs, the commercial became a digital marketing sensation in just a few days.

Promotions Help to Retain Customers

Raising a brand’s awareness through interesting and creative stories isn’t the only way digital marketing presents itself in the gaming industry. Promotions are also used strategically to retain customers as well as attract new ones. One strong instance of this can be seen through the casino gaming websites of today. Here, virtual users can choose from a selection of classic table games like roulette and blackjack or spin the reels on a variety of different themed slot games. With slot titles, for example, many providers will offer their online customers the chance to obtain free spins as a reward or part of a promotion. This tactic has been proven to retain the number of participating online users and also spread the word to others who may be interested in the online casino gaming scene.

Marketing Creates Conversations

One of the biggest goals in marketing is to get people talking. You have done your job well if someone can’t stop chatting about your products, services or brand as a whole. Both of the above tactics are great conversation starters, but even going above and beyond videos and promotions can help to build authentic and fluid traffic straight to the thing that needs to be sold. In the gaming industry, this looks a lot like making use of gaming influencers to further promote a next generation console or new release. With this strategy, the flow of conversation amongst the target audience is natural and organic, leading to an increase in sales and entertaining, often budget-friendly campaigns.

Fresh and new marketing strategies are always welcome when approaching a new project or goal

SEO Strategies Dramatically Improve Visibility

Last but not least, every gaming brand in the industry should make use of SEO strategies in their digital marketing plan. Because search engines like Google and Yahoo! play such an important role in gaming, different brands must make sure that their SEO is varied and strong enough to improve their visibility in the massive pool of sites on the World Wide Web. Of course, SEO requires much time, preparation and keyword research to be effective.

All in all, there are many things involved with starting your own business, but if that business happens to be a gaming one, these successful marketing techniques should not be overlooked.

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