Mar 21, 2022
WHY DO BUSINESSES FAIL?
EP 66 - In this episode, we are talking about the top 10 reaosns businesses fail and what you can do to keep your business from failing.
This episode is one of several episodes about how to get started in the insurance business. I’m not talking about becoming an agent, I’m talking to those of you that are thinking about starting an agency, an insurance company, or an an insuretech business.
These are real issues to consider. It’s geared for those of you who are thinking about getting started or those that have started and are looking for ideas to build a better business.
Every business has similar issues. It doesn’t matter if you are an insurance agency, a contractor or a tech company. If you are running a business you will have similar challenges. So before you open your doors, before you invest in the expansion, give some thought to these concepts and work through them before you take the next plunge!
So to recap reasons why businesses fail:
- Lack of a marketing plan - Before you open your doors, have a marketing plan - if you take nothing else from this episode, it should be plan, particularly having a marketing plan.
- Missed market shifts - are you entering an area that is shifting? Is this the time to be a flood expert? Is this the time to sell long term care? Is this the time to be a virtual office or to have a brick and mortar location?
- What is your plan to provide great customer service? If you are a solo preneurer, can you handle 20 calls a day, do your accounting, quoting and marketing? While your clients must come first, it’s essential to have a plan to manage this
- Are you overexpanding before you are ready? How much more successful can you be if you just have one location?
- What do you know about your accounting?
- What is your management style? Poor management is the fastest way to have high turnover and lose business. Are you a control freak? Are you meak and mild? If so, take a look at your management style. If you don’t have the skillset, takes some classes on how to effectively manage or hire a good manager as soon as you can.
- Location - Can you prospects find you? Does your office feel inviting? Do you need a location?
- Motivation - why do you really want to open your own business? Makesure you are doing it for the right reasons.
- Life’s distractions - do you have support if life gets in your way? What does that look like?
- Lack of planning - I mentioned that you need a marketing plan but you also need a business plan. It doesn’t need to be a 50 page document but you do need a plan. Something to track and measure your success. Would you take a trip without a map? It’s not different with your business. Remember, FAIL TO PLAN, PLAN TO FAIL.
Remember, these are all just different reasons why businesses fail. Some of them you can’t predict and some of them with some adjustments you can easily course correct. Having a realistic plan will really help you to see great results.
I don’t want you to fail, I want you to succeed. But if you don’t have experience running a business, these are concepts you need to think about to increase your chances for success!
UNTIL NEXT TIME
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ABOUT THE HOST
This episode of the Business of Insurance podcast is produced and hosted by Debbie DeChambeau, CIC, AAI, CPIA - an entrepreneur, business advisor, insurance professional and content creator. Her goal is to inspire you to think differently and explore ideas that disrupt the status quo.
Debbie has an extensive business and marketing background with a focus of helping insurance professionals be more successful.
She is the co-author of Renewable Referrals and produces two other podcasts, Divorce Exposed and Seniors We Love.