Building a business is a difficult process. Every day someone is learning something new, and every day new businesses are surfacing. However, according to the U.S. Bureau of Labor Statistics, about 20% of businesses fail within the first year. As the years progress, by their fifth year in business, this number climbs to 50%. This high percentage is likely due to a brand’s inability to define their “why,” which confuses their prospective customers and inhibits their ability to succeed in a competitive market.
Let’s uncover three reasons most brands fail in the following sections.
Three Reasons Most Brands Fail
1. They tell their audience what they do instead of who they are.
People want to buy from people they can connect with. They want to connect with the face behind the brand, especially when it comes to coaches and similar services where they work directly with an individual from a brand. Therefore, it’s important to connect with your audience by providing insight into what it is you represent, value, and appreciate instead of simply focusing on the sale.
2. Brands aren’t specific about what it is they do.
When your brand has no focus or clarity, it becomes very difficult to understand exactly what it is a brand does, making the audience draw their own conclusions or have uncertainty as to what they should be coming to your brand for. Be specific in your language and be specific in the marketing and advertising surrounding your brand. When your audience has clarity, they know what to come to your brand for and what it is you specialize in.
3. Brands aren’t offering focused products or services.
Many businesses struggle because they’re offering too many services, making it harder to succeed in the long run. Businesses are more successful when they’re more focused on a defined, targeted basket of services to a target market. While it’s natural to want to have your hand in so many different aspects of businesses, you cannot and shouldn’t do it all. A business is more successful when they’re specific and distinct, making them the go-to brand within their specific industry or niche.
Final Thoughts
When it comes to running a business, differentiation is essential. As business owners, it’s our goal to stand apart from our competition. We must also remember that every interaction we have with our customers is an interaction that plays a vital role in building our brands and influencing the perception our customers have of said brand.
Build the brand your customers need and want by leveraging design thinking.
