{"id":684,"date":"2013-01-31T12:49:18","date_gmt":"2013-01-31T12:49:18","guid":{"rendered":"http:\/\/www.success-academy.org\/home\/?p=684"},"modified":"2013-01-31T12:51:16","modified_gmt":"2013-01-31T12:51:16","slug":"why-do-businesses-fail","status":"publish","type":"post","link":"https:\/\/www.success-academy.org\/home\/why-do-businesses-fail\/","title":{"rendered":"Why do Businesses Fail?"},"content":{"rendered":"

\u201cMany of life’s failures are people who did not realize how close they were to success when they gave up.\u201d Thomas A. Edison<\/strong><\/p>\n

Most people that start businesses lack relevant business and management expertise in areas such as marketing,\u00a0finance, purchasing, selling, production and hiring and managing employees.\u00a0Many are excellent technicians, but unless they seek help from professionals in the areas where they lack\u00a0competence or skills, business owners soon face disaster.<\/strong><\/p>\n

It is a fact that most businesses fail in the first 5 years due to<\/strong> various reasons, like:
\n\u2022 Being started for the wrong reason<\/strong> \u2013 to \u2018get rich\u2019, to \u2018work less\u2019, to \u2018be your own boss\u2019.\u00a0In the first years this will not happen \u2013 you work more, spend\/invest more than anticipated and swap\u00a0one boss for many (clients, suppliers, employees\u2026).
\n\u2022 Insufficient capital<\/strong> \u2013 not enough working capital to keep the company going until it starts being\u00a0profitable; investments and expenses tend to be understated while sales projections are often\u00a0optimistic.
\n\u2022 Poor market research<\/strong> – you need to fulfill a need in the marketplace and be able to differentiate your\u00a0product, or service, in some way.
\n\u2022 Lack of planning<\/strong> \u2013 you need a SMART business plan including a brief (but clear) description of the\u00a0business, vision, goals and keys to success, human resources needed, budgets and investments, cash-flow analysis, marketing, advertising and promotional strategy and the knowledge and support to\u00a0evaluate the results after putting the plans into action.
\n\u2022 Poor management<\/strong> – a passion for what you do is very important, but insufficient if you do not have the\u00a0competencies to do it and the persistence and resilience to see it through. When you start a business\u00a0you need to control all the company\u2019s activities and operations (or have someone you trust doing it)\u00a0while keeping the staff productive and motivated.
\n\u2022 Failure to anticipate or react to competition, technology, or other changes in the marketplace<\/strong> \u2013 markets\u00a0and technology are constantly changing so anticipation is always a good strategy. Foster innovation by\u00a0encouraging the staff to come up with new ideas to improve or expand the business.
\n\u2022 Unrealistic expectations<\/strong> – many entrepreneurs assume that because they are good at what they do they\u00a0will succeed. It usually takes at least a year to develop a profitable business and that is working more,\u00a0spending more and having more setbacks that most people imagined. The good news is that each month\u00a0you survive, your chances of surviving increase, which is why it is so important to stay committed and\u00a0focused.<\/p>\n

To become a successful business owner you need to accept that you are 100 percent responsible for what\u00a0happens in the company.\u00a0<\/strong>Sure, there are a lot of things outside of your control, but you control how you react to them.\u00a0Blaming the economy, the computers, the suppliers, etc. will disempower you and contribute to your downfall.<\/p>\n

When starting a business, you must thoroughly and objectively analyze the feasibility of your idea.<\/strong> A good plan\u00a0takes into consideration the common reasons for failure upfront.<\/p>\n

Understanding other people\u2019s failures, as well as their successes, are valuable lessons that will save you time and\u00a0money. That is why Coaching and Mentoring are so important in every phase of a business.<\/strong><\/p>\n

\"business<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

\u201cMany of life’s failures are people who did not realize how close they were to success when they gave up.\u201d Thomas A. Edison Most people that start businesses lack relevant business and management expertise in areas such as marketing,\u00a0finance, purchasing, selling, production and hiring and managing employees.\u00a0Many are excellent technicians, but unless they seek help […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[6,1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.success-academy.org\/home\/wp-json\/wp\/v2\/posts\/684"}],"collection":[{"href":"https:\/\/www.success-academy.org\/home\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.success-academy.org\/home\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.success-academy.org\/home\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.success-academy.org\/home\/wp-json\/wp\/v2\/comments?post=684"}],"version-history":[{"count":5,"href":"https:\/\/www.success-academy.org\/home\/wp-json\/wp\/v2\/posts\/684\/revisions"}],"predecessor-version":[{"id":692,"href":"https:\/\/www.success-academy.org\/home\/wp-json\/wp\/v2\/posts\/684\/revisions\/692"}],"wp:attachment":[{"href":"https:\/\/www.success-academy.org\/home\/wp-json\/wp\/v2\/media?parent=684"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.success-academy.org\/home\/wp-json\/wp\/v2\/categories?post=684"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.success-academy.org\/home\/wp-json\/wp\/v2\/tags?post=684"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}