Many Businesses Fail In The First Year, But Many Succeed!
One of the reasons that it is difficult to start a business is the thought in the back of your head that most businesses fail in the first year. A short skip around the Internet the statistics for this vary wildly but in most cases they suggest that a big proportion fail in the first year and more than half fail within five years.
There are three things I would like to cover to perhaps make this statistic less frightening. That is to cover businesses that skew these statistics, the reasons why most businesses fail in the early years and lastly, what can be done to enhance your chances of success.
When a failure is not a failure
Whether to believe these statistics depends on how they are arrived at. For instance, sometimes it is based on the opening and closing of bank accounts. However, if this were the only determining factor in measuring the success or otherwise of a business then it is wholly inaccurate. Many people have good ideas and start opening bank accounts, even forming limited companies but never go through with the idea. Whatever reason they choose, it is misleading to count these as failed businesses.
So in my view, a business has not failed if the person starting it never even tried.
Most common reasons for business failure
Business in the main is not complicated. It is about determining what service and or product you are going to offer and then planning ahead your projections for expenses and income. Although guesswork is involved in the beginning, by monitoring actual results against your targets allows you to react early if things are not going according to plan. Many businesses fail because people either fail to plan or fail to keep an eye on how well they are following their plans. The resultant problems in cash flow inevitably lead to the downfall of the business and the longer you bury your head in the sand, the more likely it will be that failure is just around the corner.
How to avoid the reasons for business failure and succeed
Well the first tip is obvious and that is to turn the former section of this article on its head and continually plan your business and monitor how well you are following that plan. The second tip is perhaps more obvious and that is to get yourself a really great website with AB Publish. Have a look at your competitors' websites, you will be surprised how many are dull or look as if very little effort has been put into them. If you lovingly create your website, continually thinking of your customers' needs while doing so, you could be giving yourself a leg-up allowing you a jump-start on the competition.
We wish you luck with your new business venture. AB Publish love being involved with new businesses as it is an exciting time in a business's life. If we can be of any help, then please feel free to call us and we will do what we can for you.
Mon 20 June 2011 18:04:53