There are many reasons that businesses fail - debt, lack of revenue, unforeseen circumstances - the list goes on. But what business owners don’t realize is that they are usually the cause of their own demise.
Apple is one of the world’s leading technology companies known for its innovation in the industry. But did you know that the company was on the verge of bankruptcy 25 years ago?
Steve Jobs in an interview on PBS’s Wall $treet Week names the number one reason: failure to innovate.
Because of the company's downward spiral, Steve Jobs had to return to the company in 1997, over 10 years after resigning from his position due to conflicts in the company.
Upon his return, he transformed the company with strategic partnerships and expanded its product line, and in 2018 became the world’s first trillion-dollar company.
Apple’s story reflects the 6 most common ways that businesses lead themselves to failure every year. We talk about these six mistakes in this week’s video.
So how do we recognize these mistakes before they take over?
1. You are following your agenda rather than what’s best for the company. In this situation, you are making decisions that benefit you with little regard for how it affects the company or your employees.
2. You are getting objections from those close to your business. This can include employees, business advisors, peers, or even your customers. If you have those that truly care about you and your business they will be honest with you about the things that are harming the company.
3. You are being asked what you can do instead of what the product or service can do for the customer. In this situation, you are selling yourself, your skills, and your experience. This shows that you don’t have confidence in your company so why would prospects? This also creates a situation in which the business owner is racing toward burnout because they are doing more work. As we know, a business can only perform to the owner’s capacity.
4. You have a closing rate is 50% or less. You are getting prospects but are losing them in the sales process, particularly when it comes to making a decision. This is an immediate red flag that should be addressed in your business and if you are not currently tracking this, you should start soon.
5. You are losing clients consistently. With most products or services, we should aim to create repeat customers, those who are so happy with our offerings that they come back or more. This can easily increase a business’s profitability. If customers are failing to return you are essentially losing those profits and the business will suffer in the long term.
The number one lesson we can gain from Apple’s story is what great leadership looks like. It has the ability to acknowledge areas that the company is lacking and make decisions that may not please everyone but propels the company forward. Sometimes these decisions require calculated risks but if you believe in your business and mission you should have the confidence that these decisions will benefit the company.
So are you the leader your business needs? If no, you can be and we can help. Contact us today for a complimentary coaching session to uncover areas in your business that need sprucing up.
I am a certified Business Coach, providing business help, business advice, business coaching and mentoring services to successful and emerging business owners. I have a passion for helping businesses like yours grow and become profitable, so you, the business owner can enjoy the lifestyle you deserve.
As your Business Coach and advisor, I will help you deliver the results you desire using proven tools, methodologies and systems, tested and perfected over tens of thousands of businesses worldwide for over more than two decades. I will hold you accountable for your results and just like a sports coach, push you to perform at optimal levels. Let's schedule a complimentary Business Coaching session to get started.