Strong Reasons Why Retail Businesses Fail: The Critical Failure Factors (CFFs)…Cont’d

Reagan Home & Kitchen-Uyo,Akwa Ibom

 

“Success in business is 90% perspiration and 10% inspiration”(Thomas Edison,1847-1931). Jack Dorsey,founder of Twitter and Square, twitted in 2013 to his followers and said ” Success is never accidental”, See “Zero to One“, by Peter Thiel. Inspiration is lifting but perspiration completes the equation. If you are going to succeed in retail, you must deliberately work on those factors that will work against your success. We are going to deal with two of these factors today and the others in our subsequent posts(Sign Up Here) to receive our high value Retail Business Emails right inside your mail box every morning! You can’t fail if you follow our guide.

Weak or Inefficient Organizational Leadership or Management

Hire and retain the right people including yourself! That you are the owner of the business or have had some years of work or experience  does not mean you are the best person to run your retail business. You need to honestly assess your people and resource management skills, because from our experience, many retail business owners lead their organizations to failure! If you know you can’t handle things or that you have certain limitations that might negatively affect your business, get someone or a team of people who know what to do to run the organization for you.

As business consultants, we have helped  turn-around several ailing or struggling business. When we conduct pre-engagement interview with the business owner and management team, the issue easily identified to be responsible for the poor state of many ailing business is usually Weak or Inefficient Leadership. If your business is small and you are doing it full-time, you are probably the Chairman, Managing Director, Accountant and Sales Manager, or maybe you have some people working for you as a manager, accountant, purchasing officer etc. Whatever your case, you need to provide a presence, a strong leadership that will ensure that things go well and people do what they should do ,when they should do them!   You and your team must be able to envision the future, cultivate the ability to innovate and swim with strong competition and unfavorable external policies and pressures.

 

Poor Location 

The biggest motivation to any entrepreneur is regular sales. Sales is the lifeblood of any business, the moment you do not sell or fail to sell at a certain minimum per day, you may not cover your costs! And if this continues for a long time, you can be sure that failure is staring you in the face!The more you sell, the you gain. To sell more, you must  choose products that are regularly needed by your environment and customers, whether your own a physical store or an online eCommerce shop!

Citing your physical shop in a good location is central to your increased sales and patronage by customers! A good location may mean a busy neighborhood or street, a major road where a good number of people pass through everyday or a large and spacious environment where customers will have the luxury of shopping and parking spaces. The ambience, serenity and security of your store or mall is very important in getting you high customer foot-fall and sales!

Positioning

Most retail businesses sell every day-use goods, that is, goods that people use every day in the neighbourhood, community, street, city and state. How you position your retail business in the minds of your customers is one factor that you must address if you want to avoid the failure trap!

In retail, you are going to be selling (or are already selling) what other retail businesses are selling or will be selling, so why should a customer buy from you repeatedly instead of  your competitor? The answer is positioning!

Positioning is having a larger share of your customers’ minds than your competitors! Your customers’ mind share should be your focus rather than their pocket share! To be able to secure and maintain your customers’ mind-share, you need to wrap good customer service around your products and offerings, in other words, you need to position your business uppermost in the minds of your customers. Also, you must ensure that your products are of trusted quality (procure from people who sell quality products) and that your price is fair(you may sell slightly higher than your competitors if your customers have come to trust your product quality and are enjoying the services wrapped around your teams’ sells interactions with them……to be continued

Thinking of starting a business or strengthening your existing business? Come talk to us! Send us an email here info@steepelglobal.com.ng or call us on +234 80 561 78895. Also visit our Facebook page @SteepleGlobalServices or our Twitter handle @steepleglobal and let’s discuss ideas and help you begin your journey towards financial freedom!

Steeple Global Services(www.steepleglobal.com.ng) is a business consulting firm based in Uyo, Akwa Ibom State, Nigeria. We help to bring your business idea into reality, set up your new business for you and/or help to turn around your ailing or struggling business(s) into profit making ventures. We help businesses grow!!

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