What went wrong?

Why companies go out of business

This is the beginning of a marketing communications blog series that identifies business mishaps and teaches you how to avoid them.

Over the course of the last year, I got to know a lot of ambitious individuals who believed that they had the whole wide business world in their hands. Some of them did. Others were simply delusional and no matter what I said to them, they simply would not listen. There was no way in hell to take certain people out of their dream bubbles and make them face reality.

marketing_mistakes
© Hooman Ashtiani
From rock hard to rock bottom

Why is this so? Well, in a nutshell, many of those uber-ambitious and starry-eyed individuals underestimated the value of good marketing communications for business. And this is how it all started.

Presently, we live in a world which abounds with possibilities. Virtually, everyone with a good idea can become an entrepreneur and start his or her own business. Yet, when the excitement of founding your own company dies away, the stark reality hits you hard in the face. It might just turn out that your site is not popular, that people hardly care about your glamorous products or services, and at the end, you literally generate no profit whatsoever. The question that logically pops up in your head is “What went wrong?”. The answers do vary, but usually, the explanation is that you failed to get your message across.

Let me give you an example. Some time ago, I was contacted by a somebody, who had a great product to offer to the Dutch consumers. In a heartfelt conversation, the person told me how she had invested all her money into the production and distribution of her delicious desert. She had really high hopes and she thought that her product would instantly resonate with the Dutch people and it would immediately appeal to them. She was dead wrong. What happened to her bordered with a disaster. Nobody was even slightly interested in the delightful treat she had to offer to the world. Indeed, her product was doing so poorly that it was taken off the shelves of the major Dutch supermarkets. At the end, she had no more money to invest in expensive TV commercials or billboards. Then she started wondering what went wrong. The plain answer is that she relied on outbound or traditional marketing too much. Moreover, she failed to engage people in order to generate some interest in her product. As a result, she is currently in quicksands of insolvency and she has a very hard time making any sells whatsoever.

out_of_business
© Digital Photo Web
The end of the road

Inspired by the mishaps of numerous business starters, I decided to start an interactive blogging series for business owners, marketers, and people who need a useful piece of advice that can lift their commercial endeavors up and help them generate the profit they are after.The overarching purpose of this blog series, is to analyze and pinpoint the critical mistakes that startups and ambitious entrepreneurs are likely to make while flying high on the wings of exhilaration and desire to grow quickly and conquer the business world. So the only thing left for you to do is to follow this series in real-time by joining us on Facebook, stalking us on Twitter, or subscribing to the feed that rocks! You’ve got nothin' to lose!

By Mariela Dimitrova on November 22, 2010