Why Do so Many Small Businesses Fail?
Why Do so Many Small Businesses Fail?
The failure rate of small businesses is painful to see. With a little preplanning and consistent efforts in the right areas …. this doesn’t have to happen.
First, I see far too many people who think starting a business means the till is their personal money and owning a business means not having to work. They don’t come into prepared and give up far too easily when they realize people are not beating down their door to do business with them.
So what are the biggest reasons behind the high failure rate of small businesses …. and what can YOU do about it?
1. early burn out (poor planning)
2. no capital
3. no business plan / expectations / strategy
Burn Out:
Owners try to be both managers and technicians in the business and it drives them batty. They love doing something, so start a business, but then find that as it grows they have no life. You must be ready to start a business and then step out of the “do” part of it so you can remain energized and expand efficiently.
One useful metaphor is to think of your business as if you were going to franchise it. You will need to hire relatively unskilled people to operate the business – you cannot be at 20 locations at once. So you develop operations manuals and specific processes that are easy to train new people on. This lets you step outside the operation
Tags: Businesses, Fail, Many, Small