No business starts out to fail yet almost 20% fail in one year, half in five years and about 26% make it 15 years says the Bureau of Labor Statistics who track this statistic. Why is this? No one sets out to fail yet most won’t.
Fortune found the top5 reasons owners reported for failure were:
- No Market Need - 42%
- Wrong Team - 23%
- Out competed - 19%
- Pricing/Cost issues - 18%
- Poor Product and Wrong Business Model were tied at 17% each.
“Ran out of Cash” - 29% was mentioned, but according to the study, it’s a result of other failures and almost never the direct cause.
Bankruptcy is NOT Breakout Growth…
“OK,” “GOOD ENOUGH” or “PLODDING.” Each describes a company that fails to grow or reach its potential, muddling along and hoping for growth but in fact, waiting to fail. In their “You’re the Boss” blog, the New York Times identified the following 10 factors as reasons for lack of growth:
- Business Model, Marketing & Sales
- Wrong People for Job
- Stale Products or Services
- Lack of Standards or Controls
- Company’s Attitude Toward Customers and Employees
- Technology
- Lack of Investment
- Resistance to Change
- Leadership
- Complacency
Very rare is the entrepreneur who is good at knows or clearly sees everything. (Ask Richard Branson – his book “The Virgin Way, If it’s not fun, it’s not worth doing” is highly recommended.)
Chris DekleThat’s where we come in, working with you to help you devise more effective solutions to rapidly change your company's growth and profitability. I've built several business from the ground up, been a marketer for over 24 years and have been the area representative for FocalPoint Business Coaching for over 10 years. I know what being a business owner means and it gives me a unique perspective to help and put the fun and growth back in your own business.
Call now and let’s discuss your opportunities for sizzling growth. USA: 877.433.6225 feedback@focalpointcoaching.com
