19/07/2013
Did you know?....The TEN common sources of BUSINESS FAILURE
What is the business survival rate? Statistically, roughly 66 percent of new businesses survive two years or more, 50 percent survive four years or more, and 40 percent survive six years or more.Below is the reason why the remainder fail:
1)Failure to understand your market, your customers, and your customers’ buying habits.
2)Choosing a business that isn’t very profitable- It takes more than a good idea and passion to stay in business.
3)Failure to understand and communicate what you are selling-Does your market connect with what you are saying?
4) Inadequate financing- Cash is king. If you don’t have enough cash, your prospects for success are not good.
5) Failure to anticipate or react to competition, technology, or other changes in the marketplace-Those who fail to do this end up obsolete.
6)Overdependence on a single customer. Pay attention to your revenue sources.
7) Failure to define your product/service offerin-. Trying to do everything for everyone is a sure road to failure. Excellent results come from doing what you do and doing it well over and over again.
8) Keeping your house in order-Slow and steady wins every time. It’s hard to believe that too much business can destroy you, but the textbooks are full of case studies. To serve your customers well you have to focus on quality, delivery, follow-thru, and follow-up.
9)Poor management- Management of a business encompasses a number of activities: planning, organizing, controlling, directing and communicating. The cardinal rule of small business management is to know exactly where you stand at all times. A common problem faced by successful companies is growing beyond management resources or skills.
10)No planning- If you don’t know where you are going, you will never get there. To grow and be successful you have to actively work on your business.
In summary, where is your business coming from and where is it headed?