Improving Your Business Performance
Why Do Most Businesses Fail?
Research conducted by leading Small Business expert, Dr. Alan Williams, conducted across 25,000 failed small businesses, shows that the top 6 reasons failed entrepreneurs attributed to the failure of their business included:
- Lack of business/management experience, skill and ability – (62%)
- Inadequate or non-existent books and records – (56% )
- Inadequate sales (too few customers for too many competitors – (48%)
- Inability to manage fluctuating costs and prices – (39%)
- Inability to develop a committed workforce (leading to union problems) – (24%)
- Excessive private drawings - (23%)
The leading cause of business failure was the entrepreneur lacked the necessary management ability and experience to run a business. Poor financial management also affected more than half, while just less than half failed because of inadequate sales. These three causes of failure can be boiled down to three essential questions that EVERY potential business owner must ask him or herself:
- Do I understand what it really takes to run a business?
- Do I really understand the financial complexity necessary to operate a business?
- Do Customers really want what I am selling?
Talk with us today to discover how we can work with you and your team to develop the skills and strategy you need to build a successful, sustainable business.