15 Reasons Why Businesses Fail
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Mistaking a Business for a Hobby
Hobbies are things you enjoy and do when you have time. A business is a 7 day a week, 24 hour a day discipline.
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Poor or no Planning
No Plan, No Strategy, = No Longevity
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Over Entrepreneurial Excitement
Over excitement without the Research means no preparation so when the excitement wears off the project fails.
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Putting all your eggs in one basket
Multiple streams of income, guarantee the success of the main goal.
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Poor Record keeping & Poor Financial controls
Records are the only way to know if you are moving forward, falling behind, or dropping out. Financial controls of the who, what, where, when, and how are a must.
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Poor Money management
Managing money first takes intentional planned strategies.
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Poor or lack of Cash Flow
No money coming in from lack of sales or from lack of collections brings the business of the business to a quick demise.
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Lack of Experience in running a business
If you are not well versed in running a company, bring someone in who is. Do what you do best and farm out the rest.
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Wrong location
Location, Location, Location. Research, Research, Research.
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Competition
Three basic questions to answer each and every day are. Who are they? Where are they? What makes us different?
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Procrastination and Poor Time management
Prioritize everything. Is it something only you can do? Is it something someone else can do 80% as well? Does it need done at all?
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Ineffective Marketing
Marketing should satisfy the needs and wants through the development of the client through education of the product. What techniques are you using now? Are they working?
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Ineffective Sales techniques
Sales is about the Action of the exchange of goods or services for currency. Does your sales force need training? What techniques are you using now? Are they working?
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Poor or lack of Customer Service
If you want to be rich in today’s world, provide above and beyond Customer Service. Train your people well enough so that can leave you and encouraged enough that they want to stay.
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Entrepreneurial Burnout
Burnout is always something to watch for. New ideas. New projects. Know when to say when and know when to say NO! (Not Now)
Ready to Learn More?
D.W. (Dick) Powell
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