Why Small Businesses Fail Reason #3 - No Market Focus
In this video above, Dr. Paul Borosky, MBA, discussed Reason #3 why small businesses fail, which is the lack of market focus by a business owner. He stressed that the importance of identifying your ideal customer instead of targeting everyone, helping businesses create sharper, more effective marketing strategies for lasting success.
Transcript: Why Small Businesses Fail — Reason #3: No Market Focus
Introduction
So, why do so many small businesses fail? Here is my number three reason of my top 10 reasons why small businesses fail, and it is no market focus.
The Problem: Targeting Everyone
When I work with a client for a business plan, one of the questions I inevitably am going to ask them is, “Who is your target market?”
And a lot of times my client’s going to respond, “Everybody. We service the young, we service the old, we service the guys, we service the girls, we service everybody.”
When your focus is so all over the board like that, it’s impossible to really narrow down and target your actual target audience.
The Solution: Define Your Perfect Customer
A better strategy—and what I recommend my clients do—is to imagine the perfect person walking down the street, and you know this person is going to buy your product. No ifs or buts about it. That person right there is your target market. That is your person who’s most likely to buy your product or service.
Now, of course, there are going to be other clients out there that will buy your services as well. But when you do your marketing, make sure to keep that target person in mind.
The Result: Focus Brings Success
When you do, you’re going to be a lot more successful with your marketing strategies because it’s a lot more narrow-focused.
So, I guess the moral of the story here is: success isn’t about chasing everyone. It’s about knowing your perfect customer and narrowing your focus so you can serve them better.
Conclusion and Call to Action
All right, hopefully this information is helpful. Let’s go ahead and wrap it up.
Hey all, Dr. Paul here—business consultant and creator of the Organize-Plan-Grow™ Strategy. If y’all are interested in more reasons why small businesses fail, check out my short fable-style book Top 10 Reasons Small Businesses Fail: A Real-World Business Survival Guide. It’s available on Amazon.
Let me know what your thoughts are, and don’t forget to like, comment, and subscribe. Thanks.
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About the Author:
Hey all, Dr. Paul Borosky, MBA and DBA here. I am the founder of Quality Business Plan, creator of Dr. Paul's Organize-Plan-Grow Strategy, author of numerous published books on Amazon, such as Why Small Businesses Fail, and publisher of over 1,000 business focused videos on YouTube. For over 14 years, I have helped entrepreneurs and small business owners turn business concepts and dreams into tangible businesses through my business plan writing services, in-person and virtual business consulting, as well as with my financial models.