Tuesday, April 6, 2010

Top 5 Reasons Small Businesses Fail

Top 5 Reasons Small Businesses Fail
By Abbie Drew

If you’ve been under long-held belief that 50% of businesses fail in the first year and 95% fail within five years, you can put those dismal stats behind you.
The truth is you do have a realistic chance of success.The bad news is if you do not run your business well, your business could fail within 5 years.

And according to the NFIB over the lifetime of a business only 39% are profitable.
Another 30% of business break even, the other 30% lose money and 1% can not say.
So how do you make your business one of the profitable 39% that succeeds for the long term?

You start by avoiding these 5 big mistakes.
I have been profitably running DEMC since 1995 and I speak from experience. I have battled the mistakes I am about to review and I have worked with 100s of small businesses over the years. Thus, I have seen what works and what doesn’t.

Here is what you need to avoid.

1) Fail to establish a team.

I saw a great definition of entrepreneur in an email I received from Dan Lok recently. Entrepreneur was defined as an individual who uses the time and money of others to make his ideas a reality.Think about that definition and your own business. Are you are doing all of the work in your business yourself? If yes, you need to re-evaluate.

Too many small business people are caught up in doing the day to day tasks of running their businesses. As a result, they are unable to work on the bigger picture of growing their businesses. When your business is not growing and improving it is falling behind and headed for extinction.

You have to stop trying to be your own copy writer, web designer, customer support staff, product innovator, tax accountant, marketer, search engine optimizer, press release contact, book keeper, etc., etc., etc..Start becoming a believer in the saying – “Do what you do best and farm out the rest!

Establish a “Team” of people who help you succeed. Some will work with you and/or for you. Others will be mentors to you.
Use your team to help build your business and improve your prosperity.To emphasize the importance of establishing a team, I encourage you to review some of the Interview articles from past issues of DEMC.

In fact, I’d recommend you start by reading the interview in today’s issue of John Di Lemme.

You will find again and again in these interviews, that successful business owner mention how their “Team” has helped them arrive where they are today.

Want to know Two through Five? Clink on the link below

Bottom Line....it is okay to ask for help!


No comments: