According to StatisticBrain.com, with research from multiple independent sources, the #1 reason most businesses fail is…well, there is no good way to express this…
INCOMPETENCE (46% – mostly financial incompetence) followed closely by…
LACK OF MANAGERIAL EXPERIENCE (30%). I’ll just let that simmer for a moment…
(Don’t kill the messenger! See the full article at http://www.statisticbrain.com/startup-failure-by-industry/)
In fact, 25% of new businesses nation-wide will fail in the first year with almost half gone by the end of year 3. Some do better than others, as you can see by the graph below.
The top 10 management mistakes that lead to failure are:
|Going into business for the wrong reasons|
|Advice from family and friends|
|Being in the wrong place at the wrong time|
|Entrepreneur gets worn-out and/or underestimated the time requirements|
|Family pressure on time and money commitments|
|Lack of market awareness|
|The entrepreneur falls in love with the product/business|
|Lack of financial responsibility and awareness|
|Lack of a clear focus|
These can be summed up by ego, positioning, and education.
This is where a good business coach comes in handy. A coach can create clarity, define goals, assist with planning and projecting, and keep you focussed on what matters most.
So that you don’t end up like one of these statistics, contact me for a complimentary evaluation.
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