Navigation: | Home | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 |
Entrepreneurialism Information Click here for eBay Motors! Get 2 weeks FREE CA Anti-Virus 2007 Accept Credit Cards Get your FREE $250 Cash Card PhotoStamps

This Domain For Sale. Contact us for more information.


The 7 Major Reasons Businesses Fail and How to Overcome Them


This year, over 800,000 of the approximately 2,000,000 start up businesses will fail!

Nearly 1,000,000 of those remaining will fail within 3 years. Why do so many businesses fail? Many studies show that approximately 98% of all failures occur because of the owners. The other 2% are a result of acts of God. Here are the key reasons and actions owners can take to avoid and overcome business failure:

Reason #1: The owner is not mentally prepared or motivated to run a business. There are three different ways to use your energy, and your physical and mental efforts to earn money. I call them the three "Games of Work.," and they define the types of relationships between people and their work. The rules that players have to follow to succeed for each "Game" are shown below.

1. Bureaucrats,: Do what it takes to protect or expand their position; Will divert responsibility whenever possible, but will take credit for desirable results of others; The success of the organization is secondary to kissing up to those who make decisions about promotions, salaries and job security; Have virtually no control over their job security; And are compensated for basically showing up.

2. Partial Entrepreneurs: Choose to be responsible for work performed or results achieved in their specialized field, but do not want responsibility for the total business. Have more control over their job and its security; And are paid for the specific results they produce. Examples of Partial Entrepreneurs include; commissioned salesmen, multilevel marketing members, franchisees, and real estate agents.

3. Business Owners: Take full responsibility for their business; Are in full control over their job and its security (whether they know it or not); Have no one in the organization to kiss up to; Learn to pass on as much credit as possible; Constantly focus on the success of the business; And are compensated only from the profits of the business.

As you can see, the rules of a Bureaucrat and a Business Owner are completely opposites in all categories, and the Partial Entrepreneur is basically in the middle. The mental effort it takes to convert from Bureaucrat or Partial Entrepreneur to Business Owner is much greater than most people realize. Many business owners never fully make the transition.

Action: Before becoming a business owner in the first place, determine if you truly want and will operate under the Business Owner "Game Rules." If you choose to, do so IMMEDIATELY, and COMPLETELY! To survive, let alone succeed, you must commit to operate under the Business Owner Rules 100%. Otherwise, you should seriously consider playing one of the other "Games of Work" that best suits your desires.

Reason #2: The business owner is unable to operate a business. The success or failure of a business depends on the owner. As the head goes, so goes the body. Running a business is completely different than any other "Game of Work," but, believe it or not, the rules are the same for all types of businesses. Far too many owners fail to take the time and energy to improve their own ability to run their business. This means that they need to grow as a person first and enrich themselves and discover their true passions and priorities to be able to have the maturity, drive, and energy to allow them to manage themselves and a business simultaneously.

Action: You will greatly enhance your chances for success by finding methods of self-improvement in all aspects of running a business, and continue the process throughout your entire business-ownership career. Obviously, as you become better at running your business, the success of your business will also get better. Many resources are available to you, including respected advisors, mentors, partners, "Godfathers, " and coaches.

Reason #3: The business owner thinks he knows what it takes to run a successful business and is convinced he is fully prepared to jump in. This is rarely true. The fundamentals of owning and operating a business sometimes referred to as the "rules of the game," are rarely taught in the U.S. school system. (See Global Entrepreneurship Monitor, published by Babson College and Kauffman Center for Entrepreneurial Leadership, July, 1999.)

We are led to believe that an education fully prepares us for running a business. In truth, the U.S. school system only prepares us to get a job, not create jobs. The fundamentals of successfully owning and operating a business are very different from getting and keeping a job. Unfortunately, most business owners are left to learn these fundamentals through the age-old process of "Trial and Error" with an emphasis on error. This "Trial and Error" dependence causes far too many serious and fatal errors, and leads to stress, financial damage, and eventual failure.

Action: Learn the rules of the game of business, other than through the "Trial and Error" method. The very best way is to find and use trusted mentors, advisors, and/or coaches to guide you through the process of learning how to improve your capability to run your business to avoid the many errors others make. Frankly, the rules are simple, easy to learn, and are based upon common sense, and high integrity

Reason #4: The business owner tries to execute all three of the three basic functions needed for a business to succeed, alone and without help. (See The E Myth Revisited by Michael Gerber). The three key functions a business must have executed to succeed are:

The Technical function, which is the execution of the actual service or product provided by the business. For example the drafting action of a drafting company, the auto repair actions of an auto repair company, the production of a boat of a boat building company.

The Managerial function, which is the organization, coordination, and supervision of the people assets and activity of the business on a day to day basis.

The Visionary function, which is the discovery, setting and communication of the future goals and purposes of the entire business. The leadership to get all parts of the business flowing towards the long term goals established.

The level of success of a business is limited to the level of the execution of the weakest link of the three business functions described. A business that has two of the functions executed in an excellent manner and the other in a poorly manner will eventually level out no higher than poor.

Yet, entrepreneurs (budding business owners) and business owners try to personally perform all three functions themselves. One single person will have an extremely difficult time performing all three functions at a high enough level for the business to eventually succeed.

Michael Jordan, one of the best basketball players of all time, could not translate his huge basketball skills into a successful baseball career. He proved that the skills needed to succeed at the game of baseball are much different from the skills needed to succeed at the game of basketball. And when he returned to basketball, he had to work extra hard to re-sharpen his basketball skills to his previous levels. Likewise, the skills of owning and operating a business are specific and very different than the other two "Games of Work."

Action: Get help from someone, a partner, an employee or an outsourcing resource to perform at least one of the two functions for the business. This way that function can be executed at a very high level and will allow you to focus on executing no more than the other two at a similar high level. Normally entrepreneurs initiate businesses where they bring the technical skills and motivation to the table.

The three skills necessary to win in the business game are: Technical Skills of the business; Managerial Skills to manage yourself, time, things, concepts, and people; and Visionary Skills to set future goals and organize the business so that current activities will contribute to them (See The E Myth Revisited by Michael Gerber).

You probably bring Technical Skills to the table, but to succeed, you will also want to master the Managerial and Visionary Skills. You are not born with these skills; you learn them. You are born with natural talents towards certain skills, but you have to work to perfect them. Michael Jordan, and Tiger Woods were obviously born with unbelievable talents, but they became successful only because they worked very hard at developing the skills they needed to win. Likewise, you will want to work to develop your Management and Visionary Skills (from the Business Owners Perspective) and continue the process throughout your business ownership career.

Reason #5: The owner starts a business for the wrong reason: "No one can boss me around;" Or; "I will create my own job;" "If he/she can be successful, so can I;" "I will buy a business and enjoy the fruits of ownership;" "I want to pursue my passion for serving others." And so on. The stresses and problems resulting from running a business for the wrong reasons can become overwhelming, especially when you generate little or no profits.

Action: "The only reason to have your own business is to Make a Profit." Though this may sound cold and greedy, you will realize rewards and compensation only from your business profits. If your business doesn't make a profit, you get nothing. You might even discover you have been working for nothing, or worse, working to increase your debt.

This does not mean you have to avoid meaningful, and emotional reasons for living. Not at all. The profits and personal time gained from the business will provide you the resources to pursue your life goals. Even religious institutions require profits and time to pursue their passion of serving others.

Reason #6: Business owners do not completely consider the perspective and motivations of potential customers. Customers' perspective must be addressed so owners can entice enough customers to buy their products or services at a price over their costs to produce the desired profits. From the very beginning, owners should be focused on enticing customers to buy. Owners who do not know, understand, or appreciate their potential customers' perspectives will most likely see their business fail.

Action: Learn as much as possible about your potential customers. Design and provide products or services, delivery methods, pricing, and ways to communicate with them around their perspective. This might require that you get help stepping out of your own perspective and into someone else's.

Reason #7: Business owners insist on going it alone without asking or accepting outside help. The sole business owner has one of the loneliest positions in the world. Many owners have difficulty confiding in their employees, vendors, customers, lenders, or competitors, for fear that any one of them will take advantage of revealed weaknesses. Most owners try to go it alone by working IN their business, and not near enough time working ON the business. Consequently, they are not aware of what they are doing, where they are going, or why! (the "Trial and Error" method).

Action: Find and use Advisors, Mentors, Coaches, and/or Trusted Partners who have the knowledge and desire to educate and guide you, with your best interests at heart. All professional athletes have one, if not several, coaches, advisors, mentors, who help them become much more successful than they ever could be on their own. Coaches evaluate your ability to run your business. They will bring you outside the stress, money, and time pressures you feel from working IN the business, to help you make the changes to result in improving your profits and reducing your pressures. You will become much more successful with advisors. Asking for help is not a sign of weakness, but a sign of your desire to improve. Learning from the trials and errors of others is an enjoyable and profitable experience. Once you find the right advisors, you learn to prevent and correct mistakes you might otherwise make.

Provided as an educational service by Bill Dueease of The Coach Connection, where "connecting great people with great coaches" is their goal. You may receive a free copy of the article "10 Insider Secrets Most Business Owners Never Learn" by contacting The Coach Connection at 800-887-7214 or 239-415-1777 or coaches@findyourcoach.com, or at http://www.findyourcoach.com/0o-business-coach.htm


MORE RESOURCES:
Business:Entrepreneurialism Articles from EzineArticles.com
07/08/2020 09:48 AM
The Secret Shame Of Having A Full Time Job
According to experts, More than 47% of Americans today cannot pay $400 for an emergency without having to borrow that money. The secret shame is that most of that 47% had full time jobs when answering this question. That number is even worse today as millions have lost their jobs.
07/08/2020 09:48 AM
How Becoming An Author Builds Expertise
If you want a fast way to become an insider within your niche, push yourself to new heights, and become the expert you know you are, becoming an author will do that for you. But, you must get started and learn all you can about marketing once the book is finished.
07/03/2020 11:30 AM
How To End A Business Relationship Amicably
Ending a business relationship is never easy, but once you do let go of clients who aren't ideal, you're going to free up space to attract your ideal clients. Plus, once it's over you're going to feel so much better about your business and yourself.
07/02/2020 11:37 AM
Are You Honoring Your Values?
So much is going on in the world right now, that it can be difficult to focus on your business' values. You may be going through some financial challenges due to the pandemic, and even if that's not the case, it can feel hard to consider one more thing as you pivot and adjust. I have had to make conscious and sometimes difficult choices in my own adjustments to stay aligned with my values and those of my business.
06/30/2020 06:30 AM
You Are Made For These Times
Ever feel like you want to just leave everything behind and go elsewhere? I sure do. But we're here. How do we rise to these times?
06/22/2020 08:50 AM
5 Tips to Make Big in Business From the Expert Business Coach
Get tips to make big in business from the expert business coach Thamizharasu Gopalsamy. One can learn business basics with this pen work.
06/19/2020 04:19 PM
Honest Grant Cardone Marketing Mentoring Program Review
Do you know Grant Cardone? Do you strive for success? Are you passionate? If you want to learn from the best Grant Cardone is your guy. You are about to take a "DEEP DIVE" and become submersed into his Marketing Mentoring Program. We will take a look and I will help educate you on what I have learned, and where you will benefit by joining him on his mission to create success, and help you do the same.
06/15/2020 02:39 PM
When Celebrating Your Big Accomplishments Is Hard
Celebrating your significant accomplishments can stir up feelings and resistance. Here's how to deal with that.
06/15/2020 02:32 PM
What Exactly Is Passive Income?
Any income where the individual does not have to physically earn is called passive income. This of course is a very attractive way of earning an income and indeed those who are lucky enough to make a decent living this way are quite happy. Ways To Generate Loads Of Passive Income- There are currently some very popular and common ways to earn a passive income.
06/08/2020 09:13 AM
Find Your Fierce
You want to have impact with your business. You'll have a lot more impact if you get in touch with your fierce.
06/01/2020 08:48 AM
Are You Becoming the One?
Impact calls you on a deeper level. If impact were just about taking action, you would have had that impact already.
06/01/2020 08:43 AM
Respect Payroll
Entrepreneurs at times have such passion for their product that they overlook payroll. This article describes some common startup payroll problems, and their solution.
05/25/2020 01:14 PM
Your Relationship With Desire Shapes Your Impact
Your impact is a deep, unique expression of who you are. Diminishing your desire for impact rains on the parade of who you are and what you contribute.
05/18/2020 10:35 AM
Rethinking Your Business Plan? Be Sure to Include This
We're in the midst of a significant disruption of business. Creating a new plan focused on this one thing keeps you on track.
05/14/2020 09:50 AM
How To Handle Criticism In Business
There are essentially three types of critics. Each has a different agenda and all but one has something good to offer. It's important to understand and differentiate between these three types of critics so that not only can you quickly identify those whom you should listen to and those who you should ignore, but also so that you can learn to provide criticism yourself in a constructive and useful way.
05/11/2020 07:49 AM
Are You Afraid of Your Own Impact?
It's worth it to start to explore what's holding you back from the compelling, exquisite impact that you could have. Your impact matters.
05/05/2020 07:55 AM
Why Is It Easy to Fail at Your Pitch
The aim is to secure investors, and to achieve that, the pitch deck presented needs to make them sit up and pay attention. Do not become just another pitch they hear and promptly forget. Failure is not an option, and these are the common blunders that scream, "Fail":
04/07/2020 08:35 AM
Having Impact During a Pandemic
The Chinese proverb, "May you live in interesting times," was never more poignant than it is right now. Every single one of us is undergoing significant change, whether we want to or not. The coronavirus/COVID-19/SARS-CoV-2 pandemic (even the name keeps changing) is making sure of that.
03/28/2020 07:39 PM
To Survive, You Need to Follow the Bubbles
Whether you are an entrepreneur or small business enterprise, one thing is for certain, we are all experiencing some form of disruption in our business as a result of Covid-19. For a very small handful of businesses, this unprecedented change is a positive one for their business, while a significantly greater number have not been so fortunate.
03/28/2020 07:34 PM
Here's the Secret to Double Your Productivity
Productivity only matters in the context of what you ultimately want to accomplish. Being productive in service to your bigger goals and your impact matters.
03/19/2020 09:11 AM
Are You Prepared? Hint: If You Are, You'll Have More Impact
Preparation can be the bridge that brings you into greater emotional connection with your audience. With connection, you build impact.
03/02/2020 08:23 AM
Are We All Creative Or Is That Just A Myth?
Everyone is creative. But everyone is not created the same. There are many types of creativity.
03/02/2020 08:19 AM
3 Common Psychological Roadblocks And How To Navigate Them
Before we talk about common psychological roadblocks, understand that while you can read about this all day long, you may need extra help overcoming some issues. Consider getting a life or business coach depending on your own issues. This will help you work your way through it faster so that you can move on with your life.
02/26/2020 10:03 AM
How Can Brainstorming Be Used To Generate New Business Ideas
There are different methods of brainstorming that work for different people. What works for you will depend on your own personality, so it's smart to try out more than one method.
02/26/2020 10:03 AM
Two Mantra of Successful Entrepreneur
Great leaders are willingly make personal sacrifices and accept responsibilities for organizational failures. They put the interest of common good- their stakeholders which includes employees, government, customers, creditors, directors, suppliers, unions and the overall community at large before their interest. They adopt a 'give no excuses and accept the mistake' approach. There is a direct positive relationship between risk-bearing and entrepreneurship. Successful entrepreneurship is about identifying your passion, taking a rational risk and exploring opportunities others don't see. Risk-taking pushes you to think and act outside your comfort zone without which you become torpid, conventional and content
02/21/2020 12:04 PM
Why Is Copy Trading Service Useful?
If you don't know how to trade and want to take advantage of someone more experienced, then copy trading is the right one for you. Copying more experienced traders allows you to make a return on your money with minimal risk. The most important part is to trust a company that offers a verified record or performance of their trading history.
02/19/2020 09:22 AM
Business Problems? Use A Mind Map To Solve Them
Many people use different methods for problem solving. One of the most favored and effective methods is using a mind map.
02/10/2020 09:30 AM
Small Business Ideas for Entrepreneurs
Here are a few ideas if you want to start your own business. They are relatively simple so that anyone can do them. It is also meant to get someone thinking about a field you would rather be in than those I have suggested.
02/10/2020 09:23 AM
What Does Industry 4.0 Look Like for Entrepreneurs in 2020?
Entrepreneurs are facing more challenges today than ever before. In a deeply connected world, it's difficult to make any decision without a massive ripple effect. The Fourth Wave of industrial revolution has well and truly started to impact the world. It's an impact that cannot be ignored if you hope to be successful as an entrepreneur.
01/28/2020 02:51 PM
How to Overcome Competition in the Marketplace?
That there is stiff competition in every field may be an understatement. Thanks to such a super-tyrannical competitive environment, smooth sailing in the business world is a Utopian dream. Therefore, as an entrepreneur or a marketing manager of a firm, you may worry as to how to overcome the competition you are facing in your marketplace. Of course, this is easier said than done. But at the same time, it is not impossible as well. You have to take a few firm steps in order to surmount the competition and make your presence felt in the marketplace. Let us find out how you should go about it.
01/21/2020 10:14 AM
Are You Doing Too Much?
Your impact matters, and so does your personal sustainability. Here are 3 ways to keep having impact without compromising yourself.
01/16/2020 08:36 AM
How To Build Confidence In Business
Being confident is not something that you're born with, or that you can learn from a book. It is something you can learn from experiencing success, though.
01/15/2020 03:06 PM
How To Get Good Customer Reviews
Once you set up an automated process for generating positive customer reviews, you'll get a lot more reviews just because you're asking. But, if you also over deliver just a little so that your clients and customers feel like shouting "wow" they're also likely to leave very positive reviews.
01/09/2020 06:58 PM
The One Skill You Must Learn And Master to Succeed
By the time I was born, my mum had a growing "Institute of secretarial studies". Why she didn't simply call it School of..
01/09/2020 10:12 AM
How To Connect With Industry Leaders
Getting the attention of industry leaders is not that much different from getting engagement from any audience. You must appeal to them in their language using the words, images, and values that they care about.
01/02/2020 11:19 AM
How To Eliminate Distractions And Focus On Your Business
Business owners are always looking for ways to get more done in a day and the best way to achieve this is to remain focused in a world full of distractions. These tips will help you eliminate distractions and spend more time on important things - like taking your business to the next level.
12/26/2019 12:46 PM
Doing Everything Yourself Won't Lead To Success
There's strength in numbers and success comes when we work together. A worthwhile partnership is better than the sum of its parts, and together, you can reach new heights.
12/23/2019 10:03 AM
How Do You Gain Loyalty When Everyone Is Giving Out Coupons?
Gaining loyalty from your customers is not only good for your current income but also for your future income. Loyal fans often become brand advocates and a good representation of how well you please your clients and customers.
12/18/2019 03:13 PM
Ideas Are Just Dreams Unless You Take Action
Dreaming is great. Write down your biggest dreams even if they seem very pie in the sky, then start from where you are now to create action steps that will take you from point A to point Z, seeing your big dream into reality.
12/17/2019 09:13 AM
Do You Run Your Business Or Does It Run You?
You can build a bigger and better business through strategic outsourcing. Now all you need to do is realize that it's possible, preferable, and the only way to truly become the CEO of your business so that you run your business instead of it running you.
12/16/2019 08:40 AM
7 Steps To Visualize Your Way To Success
Visualization is a lot about building confidence. It's also about tapping into the brain's tendency to heighten your awareness to opportunities that have to do with what you're focusing on.
12/10/2019 04:56 PM
3 Prominent Benefits of Custom Snapbacks
Today, custom snapbacks are all the rage because of their high quality and stylish looks. What makes these units special is that you can adjust the strap based on your head size. Therefore, if you are going to purchase a snapback, you won't have to worry about whether it will fit you or not.
12/06/2019 05:15 PM
Bouncing Back From Rejection
Bouncing back from rejection is a skill that can be learned. You can, with these 5 nuggets of wisdom.
12/04/2019 10:55 AM
Business Success: Perfection Doesn't Exist
One thing that often impedes a business owner's measurement of success is their belief that they can be perfect. The truth is, perfection doesn't exist.
11/27/2019 03:06 PM
How To Measure Business Success
Checking up on where your business is at least once a year is a great way to ensure your continued success. It will make you more aware of how each choice you make affects your business outcomes.
11/25/2019 10:31 AM
7 Skills Necessary For Lasting Business Success
Learning the skills that you need for lasting business success will make you even more confident in your ability to run a successful business. Here are 7 skills you need.
11/25/2019 10:29 AM
Develop These 6 Skills for Impactful Leadership
Much has been written about leadership skills. But what does it take to lead an organization focused on impact, on social and environmental change, just as much as profits? These organizations are special.
11/15/2019 07:07 PM
How Many Hats Are You Wearing?
As a business owner, you may be wearing many different hats since delegation is not an option. Here are some suggestions for working smarter not harder and juggling the hats with more competence.
11/14/2019 02:38 PM
Can Business Owners Say No?
Saying no can truly give you back enough time to create the life that you really want to live. If you're feeling hurried and overwhelmed take the time to practice saying no. By saying no you'll take control of your schedule and feel like you get more time in your day.
11/11/2019 10:38 AM
Impact Helps You Say No Effectively
Every 'No' gives you room to say 'Yes!' to something that adds to the impact that you want to have.


home | site map | contact us
infolinks.com/js/infolinks_main.js"> s">