According to which business consultant you ask, anywhere from seven to nine out of every ten new businesses will fail within their first 3 years. And, among those that fail, the owners rarely understand why they failed. In nearly every single case, one of two mistakes, or a combination of both, led to the downfall. This holds true whether weâ€™re talking automobiles, toaster ovens, widgets, or rod building.
The first problem lies with market exposure.Â Often I hear from companies who believe advertising is something you do after youâ€™ve become successful. Unfortunately, It doesnâ€™t work that way. Advertising is the first and most important expense for any new business. Any start up business that doesnâ€™t sufficiently budget for advertising isnâ€™t going very far. And free blurbs on internet forums and blogs wonâ€™t cut the mustard. Advertising is worth exactly what you pay for it.
The second part of any successful business equation is the value offered to the customer.Â Custom rod builder Jim Gamble phrased this in perhaps the best manner Iâ€™ve heard. According to him itâ€™s all about the cost to benefit ratio. And heâ€™s dead on the money – as far as the consumer is concerned, this is where the rubber meets the road.
Whether weâ€™re talking blank manufacturers, component supply dealers, magazines, clubs or events, those that have succeeded have offered their customers a great value. Those that have failed have not.
Owners of failed businesses, in rod building or otherwise, are quick to offer the usual excuses, â€œA competitor said bad things about us,â€ or â€œNobody realized how good our product was.â€ And thereâ€™s plenty more sour grapes where those come from. But if you ask the consumer why they didnâ€™t patronize a business or service, the answer will be much different and nearly always the same – not enough value was offered for the price being charged. In other words, a poor cost to benefit ratio. In the mind of most consumers, thatâ€™s all that counts. If you believe otherwise, youâ€™re not apt to succeed in business.