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Top 5 Reasons Startups Fail

If you are wondering how often startups go out of business, well the numbers are worrying. According to the U.S Small Business Administration, statistics released in 2016 show that only half or 50% of startups survive for the first 5 years. The same report indicates that two-thirds or 66% of businesses don’t survive to celebrate the 10th anniversary.

 

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Image By User:Sandgem Addict – Own work, CC BY-SA 3.0, Link

No one wants to believe that their new business will fail. But, this is a harsh reality that cannot be ignored. So, why do businesses fail and what can you do to make yours thrive? In this post, we’ll discuss five reasons for business failure and how to avoid them.

 

①. Insufficient Reserve Capital

Many new small businesses fail simply because of not having sufficient capital. Make this mistake and chances are you will be forced to take expensive loans just to keep the business afloat. Many factors could cause this, including loss of an important customer or critical employee, arrival of a new competitor or even a lawsuit. Sooner or later, it all comes crumbling down when cash flow problems become unmanageable.

 

There are few measures you can take to avoid such a situation. Firstly, raise enough money to cover startup costs and keep operations running for at least for a year or two. Secondly, have an emergency fund in case unforeseen problems cause financial stress for the business. Thirdly, if you are in an industry where lawsuits are common, cover your business with liability insurance to avoid spending a huge chunk of your capital on court cases.

 

②. Not Standing Out From the Pack

When venturing into an industry with many similar businesses as yours, you will find that the big players get the largest market share. Small establishments fighting for the bottom scraps sooner or later get outpaced by big competitors. Therefore, it is important to stand out from the crowd. The best way to do this is by having a Unique Value Proposition (UVP) and making sure that customers and staff know what it is. Evaluate the competition and find out what it is you can do better than them then make that your businesses’ UVP.

 

 

③. Losing Touch with Customers

Customers are the lifeblood of any business. If you don’t address their needs or listen to the feedback they offer, your business is destined to fail.
The best way to lay down a solid foundation for success is to stay abreast with current trends and interests of your existing and potential customers. You can do this through social media engagement or with the help of customer relationship management tools.

 

④. Being Reluctant to Delegate

Some entrepreneurs become their own enemy when trying to micro-manage everything. Handling almost everything on your own means you will have little time for other important tasks. If the day-to-day operations of your business take up all of your time, issues like getting new customers, creating a vision for the business or grooming others to lead in your absence will be easily forgotten.

 

When feeling overwhelmed, you can lose the drive needed to steer your business to success. As a result, this may trigger poor management practices that will push your venture out of business. Avoid that kind of outcome by delegating busy work to others so that you can concentrate on issues that promote business growth.

 

 

⑤. Falling Prey to Unprofitable Business Models

Just because you have a great idea for a business does not mean that it is feasible. Spare yourself the disappointment of funding a business venture only to close it down several months latter after it proves to be unprofitable. This is where validating a business idea comes in handy. Create a business plan, conduct market research and seek advice from others in order to know whether or not your venture stands a chance to succeed before you invest resources into it.

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Businesses Could Create Their Own 3D Animation

Do you want to create your own digital animation or perhaps a 3D animation? Agencies offer courses on how to create killer animations. If you have a business and you do not want to spend all that cash on a media company, you can certainly create one but learning how to do it is not going to be easy and expect it to take a lot of your time. If you were to use it for your business, of course it is advisable that you hire a media company to do all that for you. It will look very professional and it will be done in a shorter time. However, if you are bent on saving cash, we would like to give you some tips on how to make an awesome animation. Citizens will surely like it.

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Tips on creating a 3D animation

  1. If you are going to venture in a 3D animation creation, we expect that you already know the basics of creating digital animations 3D animation is not rocket science but it is not a walk in the park either. You need to have the proper motivation and passion. Believe us, if creating animation is not your passion, then you are better off paying someone else to do it for you. If your interest lies here, on the other hand, it is going to be a bit easier. When you have created your first project, do not throw it away if it is not what you expected.
  2. Observe the works of others. By learning what others do, you will also improve your skills. You will also develop your own style and that is very important. Be great by learning from the greatest!
  3. Buy 3D animation software that is not too pricey. Do not shell out money on the most expensive software that you could get your hands on. You have no idea if you will want to do this kind of thing regularly or if you are going to get sick and tired of it and decide to hire a digital media company. Also, the more complicated software will only confuse a beginner so buy something that is not too complicated to use.

The digital art industry is rapidly evolving and you have to keep up with the latest technology. If you want to create something that looks very professional, you may want to take some crash courses. However, we are sure that businesses do not have the time for that and they cannot spare one of their employees to go and learn. Hiring a digital media company would be the best option.

Learn the advantages of digital animation. There are several trusted media companies that could do an excellent animation for you. Contact us for more information.

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The 3 Main Benefits of Digital Advertising

Digital Advertising Agency – The 3 Main Benefits of Digital Advertising

In this day and age, everything is digital including advertising. Gone are the days when you could just print a poster and hang it at a crowded area. Most people are curious and attracted to the latest technology and what it can do. Advertising through printing may still have its uses but it has been dying a slow death and digital imaging has, without a doubt, taken its place in the advertising world. Oh just how we all love looking at great graphics animation and if companies take it to a higher level, they would go for 3D animation. How can print advertising compete with such eye catching ads? More importantly, what are the benefits of digital advertising and how can a digital advertising agency help your business?

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What are the benefits of digital advertising?

  1. It delivers targeted messages to specific locations and at specific times. Unlike print advertising, digital advertising can go global and ads can be shown anywhere in the world at the time you specify. With only a click of the mouse, people can view the captivating animations you have created. And who does not like watching entertaining ads?
  2. Digital advertising is cheaper. Yes, it may cost some money to hire a company to created digital animation for you but in the long run, you will see that it is indeed cheaper. You do not have to print too many copies so you can hand out to people. With print advertising, you need to print thousands of copies and you need to distribute or hang it somewhere. Considering the natural elements that your poster is exposed to, we bet it is not going to last long and then you will have to reprint. With a digital ad, all you have to do is upload it and share.
  3. You can track the metrics and it is exact. One of the great things about going digital is that you will have solid metrics. You will know how many views you had in a day and how many have subscribed. If you create two ads, you will know exactly which of the two is more effective in catching people’s attention.

Everybody is on their phones and tablets 24/7. If they are not making calls, they are answering emails, browsing on the internet and doing social media. Having digital ads created by a great digital advertising agency will help grow your business. If a billion people are on the internet every single day and you get the attention of a few million through your eye-catching digital ad, sales will surely go up.

Learn more about digital advertising here.

 

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Social Media Rock Stars Boost Online Presence

Social Media Agencies – Social Media Rock Stars Boost Online Presence

Having a profile in different social media platforms is no longer just an option for businesses but it is a necessity. Social media has become so popular that most people can’t go on a day without checking it. If they need to check a business establishment, they go on Facebook and look at photos or read reviews. However, it is an option for a company if they want to hire social media agencies. There are plenty of these agencies that claim they could boost sales. Your company can certainly do social media in-house but you need to know early on that posting some random status updates or photos is not enough. There are strategies that agencies use in order to acquire a million followers and convert those into sales. Also, if you opt to hire an agency, you need to know that they can deliver what they promise.

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What do social media agencies do to help your business?

  • They structure an effective strategy for your business. An experienced agency has a strategy that they can present you with. They give you details on what they are going to do, give you a list of what they need from your business, and they have a timetable. They know when the right time is for posting and when it is not. If you are given some vague speech about how they can get you followers, chances are, you are not in good hands.
  • Your posts on social media will be monitored by social media agencies. Your target audience wants to be engaged. It is not enough to just post and log out. When your followers make some comments or asks questions, someone needs to answer them and engage them in a conversation. It makes your followers and potential customers feel that they are important and that they are valued. If you do not have someone to do this, they will be left hanging and will think you do also do not have a good customer service. If you are having someone from your company do this, they may forget about it or they may not have the time for it.
  • They track your sales. The experts in social media do not only let your business gain followers but they monitor if your sales is improving. When a strategy is implemented, they should know if it is working or not. If it is not, they should change their strategy and if it is, they should brainstorm on how they could make it a lot better.

An experienced social media agency can bring great benefits to your business. Of course, you need to find the rock stars of social media and not just settle for mediocre agencies. Learn more about social media marketing and how it can help boost your online presence and your sales here.