Success in business is never automatic. It isn't strictly based on luck - although a little never hurts. It depends primarily on the owner's foresight and organization. Even then, of course, there are no guarantees.
Starting a small business is always risky, and the chance of success is slim. According to the U.S. Small Business Administration, over 50% of small businesses fail in the first year and 90% fail within the first five years.
In his book Small Business Management, Michael Ames gives the following reasons for small business failure:
1:Lack of experience
2:Insufficient capital (money)
3:Poor location
4:Poor inventory management
5:Over-investment in fixed assets
6:Poor credit arrangements
7:Personal use of business funds
8:Unexpected growth
Gustav Berle adds two more reasons in The Do It Yourself Business Book:
9:Competition
10:Low sales
More Reasons Why Small Businesses Fail
These figures aren't meant to scare you, but to prepare you for the rocky path ahead. Underestimating the difficulty of starting a business is one of the biggest obstacles entrepreneurs face. However, success can be yours if you are patient, willing to work hard, and take all the necessary steps.
On the Upside
It's true that there are many reasons not to start your own business. But for the right person, the advantages of business ownership far outweigh the risks.
1. You will be your own boss.
2. Hard work and long hours directly benefit you, rather than increasing profits for someone else.
3. Earning and growth potential are far greater.
4. A new venture is as exciting as it is risky.
5. Running a business provides endless challenge and opportunities for learning.
6. Once running a business can create wealth on its own
These positive elements add together to give the entrepreneur or small business owner the best possible chance at business success.
It will be many years, perhaps decades, before we again see such a positive environment for home business launches on the internet.
Winston Churchill said only 15 words in his commencement speech to graduates of one of the most prestigious Universities in the world...OXFORD University:
"CHOOSE YOUR GOALS CAREFULLY AND THEN... NEVER...NEVER...NEVER GIVE UP UNTIL YOU REACH THEM!"
That was his entire speach - because that is all that needs to ebe said when it comes to success.
Follow that philosophy and you can't help but achieve success. Unfortunately so many business owners do not follow that philosophy and that is why so may fail.
Why Small Businesses Fail
Donald Trump. Love Him. Hate him. Feel indifferent. Either way you know who he is -- and so does the rest of the informed world. "The Donald" has lost fortunes larger than most of us will gain in our entire lives of earning. How has Donald become a household name that is worth billions today? Two Words: Think Big.
That is where most small businesses fail. I don't know why I do it. Maybe I'm a closet masochist or something. But a couple of times a year I target 25-50 small businesses and send a carefully sequenced and timed series of letters explaining the possibility of improving the marketing they are already doing or expanding their small business. Talk about an exercise in futility. Most small businesses do not think big.
They have somehow convinced themselves that success will eventually come from putting out daily fires, and then the business with eventually take care of itself. They're wrong. According to the IRS, 9 of 10 business will go belly up within five years. There's proof the take-care-of-itself mentality doesn't work.
What if Trump had decided two decades ago to only focus on the daily fires of running his businesses, where would he be today? Bankrupt. Just another nameless real estate speculator in the crowd. He would not have the success he has today. And he would not be enjoying the freedoms and attention he's gained along the way.
What about you? Do you own or operate a small business? Have you taken time to assess where you are now, where you want to be, and what steps you are going to take to get you there? If not, you are thinking small. You are hindering yourself from reaching the level of success that could be yours if you were only to think big.
Both Chris Stirling & Andre Bell are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Chris Stirling has sinced written about articles on various topics from Marketing, Network Marketing and Interest. Chris Stirling is the owner of Top-Work-From-Home-Directory.com His website is geared for people who are interested in finding an online work at home opportunity. If you would like to learn more visit his website at:. Chris Stirling's top article generates over 6600 views. Bookmark Chris Stirling to your Favourites.
Andre Bell has sinced written about articles on various topics from Information Technology, Marketing and Home Businesses. Andre Bell is a business success researcher and author. As principle of marketing consulting firm Andre Bell Consulting Group, Andre is committed to helping business owners discover what it takes to maximize profits from every marketing communication and. Andre Bell's top article generates over 1900 views. Bookmark Andre Bell to your Favourites.
