Places like the UK are globally recognised as one of the most innovative business locations in the world, where ideas can be actualised, with the room and amenities to build an entire company from the ground up. So why is the average failure rate for businesses in the UK sitting at around 60%?
How true is the Active Capital Report back in 2020, for instance? The one that listed London as the most innovative city in the world out of a collection of 288 cities assessed worldwide. Just a few years ago, it was revealed that 61.4% of new businesses failed to hit the five-year milestone in London, regardless of how new or innovative their concept might have been.
What we’re saying is – although the UK and London as a whole are recognised as being innovative – just how much room is there for new innovation in an already saturated business market?
Looking At The Reasons For Failure
If you’re looking to build an exciting new business in the UK, it is important to ask these questions and understand how you can fit into an already thriving business sphere. To do this, looking closely at the reasons for business failure is wise.
One of the most common reasons that businesses fail in London, for instance, is a failure to effectively market and give customers a reason to invest money in the company. For example, your idea might be new and innovative, but that doesn’t mean customers will necessarily know or care about it. Innovation cannot, on its own, incentivise engagement.
Take Nike, for instance, This is one of the world’s biggest, most innovative companies, yet it still has a loyalty programme to ensure that customers remain invested and can gain rewards based on their engagement. This is especially true if you are starting up a B2B company. In nearly all cases, a b2b loyalty programme will be the difference in success or failure, no matter how good the idea of your business might be.
Being Innovative Everywhere
It’s also essential to remember that businesses have many branches, not just one. For instance, you might have a new and innovative concept for the business itself. Still, you are not pushing the boundaries in other areas, such as marketing, communication or employee practices.
In other words, having a new, creative idea for a business is not enough. That business must be run creatively too. If you want to succeed, it is important to utilise the latest technology and ideas regarding communication, marketing and the work process.
For instance, a number of companies are now taking advantage of the new metaverse office space, allowing employees to work remotely and yet still be engaged in a productive office environment. This then helps to boost employee engagement and can spark original and creative ideas for the company’s progress which might not have been sparked had you not taken that first innovative step.
London, for example, is a strong hub for new businesses and ideas, but it will only nurture you if you keep that innovation at the forefront of your company and work inside of it. Always strive for new, new, new, and your business will grow as a result.