Why Businesses Fail in Pakistan?

Did you know that statistically, almost 20% of businesses fail within the first two years and almost 45% within five years? And these statistics haven’t changed much with time.

Let me go over some of the most common mistakes startups make and how you can avoid making these mistakes.

1-Inadequate research

Just because you have an idea that doesn’t mean you can have a running business. To avoid pitfalls, you should develop a well-researched and proper business plan. And know your market and your competitors.

2- Insufficient financing

A primary reason why many businesses fail is not knowing your budget and it can easily lead to funding shortfalls. If you want to avoid this mistake, try to devise strategic budget plans, and you should also be more in tune with how much revenue is generated by sales of your products or services.

3- Undercharging for product

Many startup owners think if they sell their products at a lower price than their competitors, they will get more customers. Do not undersell yourself, and know your worth.

4- Poor marketing strategy

Even if you have a good product, if you don’t know how to sell it that means all your hard work was for nothing. Take advantage of social media to create buzz about your product.

You should know the main key factor for your business to grow is your customers. You have to create such a strong base that they always come to buy your product rather than your competitors.

Here are a few tips that helped us build a loyal customer base.

• Reward customers with special offers. I always try to give my old customers coupon codes in my own business.
• Always respond to customers’ queries. If you answer your customers’ queries on time, it will show them how much you appreciate them.

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