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Why Do So Many Businesses Fail?

Every successful company has a  business plan. Without this crucial first step, even the best of businesses can fail and fall behind in an increasingly competitive business world. Too many companies do not understand what it takes to develop a successful plan and miss out on key principles that will help their company grow.

Business failure may be different from company to company but most of them have similarities like poor management. Both large and small businesses fail if they are poorly managed. Poor management skills can destroy businesses quickly if left unchecked, no matter how bombproof the original business plan was.

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Businesses don't fail overnight; it takes years for businesses to flounder but with poor management, it can take months or even weeks until a company is on its last legs.

One of the most common reasons why businesses fail is because of poor marketing practices. Most of the time, if not always, the answer to this problem is clear messaging. By ensuring your business has an effective communication strategy at the top of your list, you will increase your business's chance of success.

Business Failure via Communication Failure

Whether the reason behind the business failure is a lack of planning or subpar management practices, companies still have a fighting chance when they change the way they communicate.

The StoryBrand Framework, created by author and marketer Donald Miller, helps businesses, brands, and organizations of all sizes improve their business plan through clear messaging and the story structure.

If businesses want to improve their odds of succeeding, they need to start by developing a successful business plan. But it won't amount to much if you and your team can't communicate the plan effectively. From there, it is vital that businesses make necessary changes in their approach so they can revitalize their strategy, enhance company morale, and reach more of their ideal customers.

Let's take something very technical. If businesses don't manage their money wisely, for example, they may also find themselves in serious financial trouble before long. Cash flow plans and financial reports won't be very effective if they're not telling a story. 

In order for you and your team to get on the same page with just about anything in your business, you have to create a story that resonates with them. You can also use the same principle when you're talking to your prospects.

There are many factors that come into play when managing a company and managing employees. But for your business to grow and flourish, you must have a solid understanding of basic marketing and how marketing campaigns work. 

Not a lot of businesses prioritize clear communication, but those that do get a better chance of avoiding them. Clear messaging should be a basic marketing approach, not only when you're talking about your customer base or creating a marketing plan, but with every aspect of your business as well.

They Don't Share Information That Will Help Customers Survive and Thrive

Most brands fail because their message is too complicated and the brain cannot process the information they are trying to communicate. The more simple and predictable the communication, the easier it is for the brain to digest information. A story helps clarify things and gives them more sense. 

It is natural for us humans to find ways to survive and thrive. If your message does not answer the need to survive and thrive, it is more likely to be ignored by your prospects.

You must give a clear message about how your business can help customers survive and thrive. This is the way successful businesses think, and this is why successful brand messages are simple, predictable, and easy to digest. 

A successful brand understands what makes itself successful (your target audience) but also what makes its target audience successful (let them know how you can address their needs to survive and thrive). 

If you can figure out these 2 things, you will be able to create a sustainable business model because your message will resonate with customers on an emotional level. If you are a new business owner, just remember to keep your message simple.

What Would a Successful Business Do?

They invite their audiences into a story of transformation. Here's a simple reason why businesses fail - they talk about themselves too much. These days, brands that show up to serve their people resonate more with their audience. 

Packed with a simple and clear message, they enable their clients to spread the word around about their brand. Read until the end and we'll tell you how we can do the same for your business.

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They Send Exhausting Messages

Conserving energy and resources is a part of surviving and thriving. Having a clear brand message helps customers conserve energy because they no longer have to process so much information to understand what you are trying to say.

Many small business owners and even entrepreneurs who manage their own businesses make the mistake of prioritizing being clever over being clear in their marketing message.

Clever marketing can be successful in the short term, but the energy expended on trying to understand a clever message cannot compare with the energy saved by understanding a clear one.

Clear marketing will help your customers conserve their resources and you'll find marketing becomes much easier when done well and very easy when done poorly (because nobody will care). Clarity is better than cleverness in marketing because successful owners of a business know that sustainable business practices produce successful outcomes in their business operations.

Communication between customers and brands is important because it saves both parties time and energy while helping them achieve goals, makes money, etc. Marketing successfully requires an entrepreneurial journey from people with their own business to find ways to get their messages across clearly so that they get what they want from the relationship. 

Being clear is better than being clever in marketing because successful business owners know that the best practices produce successful outcomes.


The Formula for Clear Communication

In marketing, in order to avoid failure, a small business must avoid miscommunication in its brand messaging. A failing business often fails because of a lack of clear communication between the manager and employees. The same is true with any type of small business owner who needs to communicate effectively to avoid failure.  

Marketing success is all about knowing what you want out of your marketing campaigns and then implementing them properly. You have to know your product, what it does, how it works, the benefits that come from having this product, etc. With this information at hand, you can properly market your product without confusing consumers with vague messages or unclear objectives.

The StoryBrand Framework

This approach to marketing uses the story structure to present your brand clearly. It follows the common elements of all the greatest stories ever told so your copy, email, or website is easy to understand, making it easier for you and your prospects to get down on the sale.

It positions your customer as the hero, the main character in the story who has a problem.

And then you come in as the guide who has a plan. Once it's clear for the hero what he needs to do, he needs to respond to your call to action. As the guide, it is also your responsibility to help your hero see his success story and avoid failure, the alternate ending.

Click on the button at the end of this blog to find out how you can implement this plan in your business.

Once you have this plan set up for your small business marketing or advertising campaign, avoid making small mistakes that can result in large problems. For example, avoid using words that have different meanings to different people in the same marketing message because it will lead to miscommunication. 

Say you are trying to promote a new product and want to use the word "new"-- avoid using terms like "fresh" or "reliable." These words could have completely opposite meanings when applied to your campaign depending on what part of America you are advertising in.

Clear communication is vital for any small business owner who wants to avoid failing their company. Marketing your product effectively begins with knowing exactly what your customers want out of this product, how much they are willing to pay for it, and how best to promote it properly instead of confusing potential customers with unclear messages or goals.

Simplify The Business Plan

Start working with a StoryBrand Certified Guide and join the next StoryBrand Workshop!

In this workshop, you'll get all the coaching you need from some of the best marketers in the world. We will work together in fortifying your brand's message so you can eliminate the unnecessary obstacles between you and your prospects.

If you're ready to take your brand to the next level this year. Click on the button below to save your spot on the next StoryBrand Workshop.

Click here for more valuable information!

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