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Only two-thirds of small businesses manage to survive for at least a couple of years and barely half make it for about four years. The rest of them simply fold up and vanish. They fail.
These are definitely not reassuring facts. What could possibly go wrong with so many business start ups that only such a tiny percentage survive past infancy?
One of the main reasons why any new business fails is the clichéd and the obvious: poor management. Eager, new entrepreneurs often do not have the prerequisite skills or education to handle some areas of business such as production, buying and selling,finance and management of human resources. Basic education in these fields is an absolute must for all new business owners. Some of the other factors that lead to the downfall of a new business are:
Lack of capital: Business owners frequently turn a blind eye to this very basic fact, hoping to deal with it at a later point and end up really suffering it’s consequences.they often underestimate the capital needed for any venture.
Poor planning: The importance of having a good, fool proof business plan in place cannot be stressed enough. A business plan has to be a realistic plan based on actual facts and with calculated estimates for the future.
No website : As obvious as it seems, this is the cause of failure for an alarmingly huge number of small businesses. No website. In this day and age it is shocking that anyone could even commit such a mistake but it’s true. There is no other way of saying it. If you don’t have a website, you are dead.
These are just a few among several reasons that cause a new business venture to fail. However I think that the REAL reason why a business is fails is the simple and rather obvious reason- It was started for all the wrong reasons.A lot of entrepreneurs, when faced with the question, Why did you start your business?’ often say,’ I thought I’d have more time with my family’,’ to make lots of money!’’ I wouldn’t have to answer to anybody; I’d be my own boss’ etc.
These, as I see it, are simply the advantages of having your own startup. They cannot and absolutely should not be the reason for your own start up.
Having the right reason for a starting a business is the most crucial part to achieve success as it is your reason that will be your source of strength and fuel your determination and push towards your goal.
I think it’s very important to have a great love and passion for what you are doing as petty setbacks won’t affect you as much when you dedication and passion is so strong. It is very important to have great strength of mind and body to withstand an onslaught of any sort and to be prepared for whatever might come your way.When your reasons are the ones I’ve mentioned above or in the same vein, then rest assured your new venture won’t be included in the failure statistics ever. You may infact feature in the success stories, again,depending on the strength of your drive.
