My uncle Dave is a very successful businessman and drives a Mercedes. He goes to exotic places for holidays. I thought he would be running a big ass business. Once I got the chance to visit him at his shop.
What a piece of disappointment it was. The shop was a tiny store located in the market on the west side, just outside Greater London. I asked him why is he in this small store when he could afford a big store.
And then he told me the story:
My uncle moved to London as a teenager. He never completed his formal education. He never even finished high school.
He was one of those “I am gonna do it myself” children. He even slept on the park bench time and again. He finally got a little job in a chemical factory.
He took a lot of time in doing deliveries for a chemical factory. Slowly he started getting the business, and it is working. He was never into luxuries and preferred saving money.
He began his retail business of industrial chemicals. He had to get some bad credit business startup loans guaranteed approval in the UK. But it proved to be a good investment for him.
At the age of twenty-two, he met Aunt Betty. She was the daughter of one of the delivery men. One Sunday afternoon, they got married in a church and settled just outside Greater London.
The Success Story
My Uncle Dave was settled in his ways, but the life was not kind. Soon bills sated to arrive and drained up all of his savings. Five years and three kids later, he struggled to pay the bills.
He understood the family could not survive just with the small business. He needed to do something very quickly. It was necessary that he does something to enhance his earnings.
He met some new suppliers and launched a dealership service on another loan. It was successful. His income increased substantially. And he was happy with the results.
Soon he was one of the biggest dealers in the area and was supplying and dealing with the entire west side. He was doing very well for himself, and the business was booming. All was well.
But as it happens, he was not content. He planned to start a much bigger store. He took a loan of nearly 50 GBP from different sources and added all of his savings to launch a big multi-floor store to operate his business.
The Twist in Story
He launched with huge promotions and a big party. It all seemed terrific. The first month after the extensive renovation was amazing, but soon the sales started to decline. He could not understand what had happened.
He tried everything in his power, but nothing seemed to work. He was in massive debt from the loans he took from many places. Soon his debts led him closer to declaring bankruptcy. His only option was to move back to the older, smaller shop.
He had to move back to his older, smaller shop. His smaller store became as good as it used to be. The business started to boom. He still had a huge debt to repay. He decided to get debt consolidation loans for bad credit uk no guarantor.
Within a few years, he paid back all the debt and became financially stable. Till today my uncle is running the same shop, earning well. He says the smaller shop is lucky for him. I disagree because I have several reasons which I believe were the reason behind the failure of his big launch.
The reasons behind the failure of Business
My uncle Dave is not the first person with this issue. Many do a greater launch and end up being broke. The reason behind the failure is discussed below:
· Lack of Planning
People like my uncle Believes in “build it and they will come”. Occasionally, a product or a service can lose its market, and promotion incorrectly gives the wrong idea to the existing customers. Many people suffer from this and end up with failed businesses even after a very successful launch.
People do not plan effectively. From the guest list to everything, lack of planning may result in disaster.
· Lack of Effective Marketing
Marketing is almost always an afterthought on a re-launch. People think they are already well known for their work. They do not need any marketing. They spend vast amounts of money on renovation, decoration, products, and finding suppliers, but marketing strategy is ignored.
It is essential to get your marketing plan in order. Even if you have loyal customers, they will still need acknowledgement and reassurance that the value of your business is still the same.
A customer is loyal to you because of your business values and is drawn to you. A significant change might be perceived as a change, and most people do not welcome his kind of change.
People might misunderstand your re-launch to change in business orders and begin to avoid your business. Plan your marketing strategy if you want to stay ahead in the game.
Your renovation should message that a more prominent business means better customer service. Did you know that a lack of marketing and market research support causes one out of three product launches to fail?
· Inaccurate pricing
Pricing is very important for a successful business. People who renovate want to compensate for all of the investment at the earliest and offer high pricing. It is not going to be suitable for your launch.
Pricing is a difficult task that you must concur with effective planning. Some people charge too much for their goods, while others charge too little, making it difficult to earn profits.
Include price components in your marketing campaigns. It is just a myth that under-pricing their product or service can get attention and bring success. Rather under-pricing gives people the impression that something is fishy.
· Appear Unapproachable and Unaffordable
Moving from a small shop to a high-end store is a huge step. While this might bring some high-end customers, you might end up losing some customers. A fraction of your customers might think that your store is unaffordable and avoid going into your store.
· Timing of the Launch
They say timing is everything. You must time your launch at the right time, so people notice. Launching a new store around a busy Christmas is not a good idea. Among so much going on, people might not notice your new launch.
Tips to Avoid Failure of your Business
Following are the tips to avoid failure of your re-launch:
- Align your marketing resources to complement your renovation and succeed in your launch. Don’t wait until after the launch. Create a buzz among people.
- Attempt to improve your marketing effectiveness. Even if your product is as uncommon as industrial chemicals, your target client should notice you. Implement a wholly integrated strategy that ensures your marketing is effective and operational and reaches the right clients.
- Have a backup plan ready in case your launch suffers.
- Give some re-launch offer. It could be a contest or percentage off on the MRP of the product. You can also try to sponsor some local fest or program to ensure your re-launch or renovation is noticed.
- Have a reward system ready for existing, loyal customers. You can send them some gifts. Your customers will appreciate it and make your renovation a success.
Conclusion
Don’t wait until after the launch to get your marketing strategy in order. Even if you have loyal customers, they will still need acknowledgement that the value of your business is the same. A big change might be perceived as a change, and most people do not welcome his kind of change.
Your re-launch should message that a more prominent business means better customer service. Align your marketing resources to complement your renovation and succeed in your launch. One out of every three product launches fails due to a lack of marketing and market research support.
Implement a wholly integrated strategy that ensures your marketing is effective and operational and reaches the right clients. Give some re-launch offer or percentage off on the MRP of the product.
You can also try to sponsor some local fest or program to make sure your re-launch and renovation are noticed. Your customers will appreciate it and make your renovation a success. Lack of Effective Marketing Pricing is a difficult task that you must concur with effective planning.
People who renovate want to compensate for all of the investment at the earliest and offer high pricing. Moving from a small shop to a high-end store is a huge step, but you might lose some customers.
A fraction of your customers might think that your store is unaffordable and avoid going into your store. You must time your launch at the right time, so people notice. Under-pricing gives people the impression that something is fishy.
Implement a wholly integrated strategy that ensures your marketing is effective and operational and reaches the right clients. Don’t wait until after the launch to improve your business.
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