Keys to Business Success: Why Your New Business Won't Profit and What To Do About It

I think we all remember the phrase, "If you build it, they will come" from the popular movie, Field of Dreams. However when it comes to business start up, there is a very different story to tell. It's one thing to start a business, it's another to sustain overtime. I recently read a blog post by Small Business Trends, which outlined the 5 yr success rate of small businesses by industry. And much to my surprise the service industry's survival rate is performing slightly higher than average. However, in spite of this, it also means there is still a large number that aren't making it. There are many reasons why small businesses fail. One area is obviously tied to insufficient financial capital. So what makes the difference between big revenue streams vs. small or non-existent ones? Here are my top 10 picks for why new solo businesses remain small and struggle to make money: 10. No infrastructure to run business. Once you find that perfect client, the question that comes next is now what? Many new solopreneurs have a difficult time answering this question because they have been so focused on getting their first few paying clients, they don't have a plan for how they will deliver their product promise, and/or manage the operations of their business. Quick tip: Before getting your first client, establish processes to facilitate ongoing, consistent communication, and systems to manage your finances and administrative functions. This way you can focus more of your attention on marketing and business building efforts rather than getting stuck working in the business. 9. One-on-one client orientation. A business model that only consists of working one-on-one with clients is short sighted and typically results in burnout overtime. It's much more advantageous to share more of you and what you have to offer, with the masses rather than only those whom you can serve personally at any given time. Quick tip: The easiest way to do this is to incorporate both products and services to your sales funnel to help more people and expand your earning potential. 8. A website without a hook. The harsh reality is once a unique visitor comes to your website they will either save your site as a favorite or leave and never return...unless you give them a reason. Design your site with the goal of converting visitors into prospects. Quick tip: Provide relevant and valuable tools, resources, free giveaways...and an opt-in feature to capture contact information in order to begin the sales conversation. 7. One dimensional marketing. Think about your marketing plan as a portfolio of sorts - the more diverse, the better your chance of reaching your intended goals and benchmarks. And the less risk you run of losing time and money with all your eggs in one basket. It's also important to monitor the performance of each strategy to ensure you are pouring the right resources in the right areas at the right time. Quick tip: Incorporate a tracking mechanism for each strategy to eliminate the guesswork around what works, what doesn't, and achieve optimal results fast. 6. The wrong offer. Not all solutions you have ideas about are the most viable in the eyes of your prospects and clients. Remember it's not about you, it's about your clients. Focus on what your clients really want and avoid the temptation of creating services or products in a vacuum. Quick tip: If you are unsure about what solutions your prospects or clients are seeking, simply survey them or ask directly. 5. A non-compelling marketing message. It's one thing to know who you are seeking to attract, it's another to know how to communicate with them and enlist them as clients. Without careful attention to this, you'll end up working ten times harder by chasing down prospects instead of pulling them toward you. Quick tip: Your "sales conversation" should always speak to their heart and mind, by focusing on what matters and concerns them most. 4. Missing marketing plan. The "art" and "science" of attracting ideal clients is a focused and purposeful activity. It's always a good idea to start with the end in mind and design your strategy for how you will get there. Quick tip: Establish goals for how you wish to build your list, bring in more business, and then take action to make it happen. 3. Fishing in the wrong pond. There are many criteria for choosing viable markets, to include the ability to reach your prospects easily and inexpensively. However, without a clear idea of where they "hang out" you will be hard pressed to begin any marketing conversation, build your list, or grow your business. Quick tip: Take time to study your target first so that you know where to direct your marketing efforts. This way you avoid the "spray and pray approach" to marketing, and save more time, energy, and money. 2. Inconsistent marketing efforts. This fatal error fosters the "feast or famine syndrome" as it pertains to lead generation. In order to keep your pipeline full of prospects, see marketing as an ongoing and consistent activity. Always remember, if you aren't actively seeking business, then your business is not making money. Quick tip: Carve out time every day to devote toward some aspect of marketing. Ensure that your actions remain focused, intentional, and speaks to your overall marketing plan. And the number one reason why new solopreneurs struggle to make money is an undefined targeted audience or niche. As a result they present themselves as a jack-of all-trades and master of none. It's extremely difficult to be a generalist and attract all the clients you will ever need at the same time. Having a specific target audience or niche, will help you formulate a cogent marketing message that pulls ideal prospects toward you, more quickly, more often, and without fail. It will also be easier to authentically convert them into paying customers. Quick tip: As you seek to find the ideal client, never lose sight of what fills you up on the inside - an eager individual with a pulse and credit card in hand shouldn't be the only criterion for ideal. Sometimes a complete business makeover is required to get your business turning profits. But other times a small tweak is all that's required. Use these simple strategies to audit what's working and what isn't with your business to accelerate your profit making potential by leaps and bounds.