How Not to Be Another Statistic
Do you know how many businesses opened their doors in the U.S. in 2009? Over 552,000. That is a great amount of Americans who have taken the ultimate chance, putting the life of their family and a good portion of capital on the line.
Now for the bad news. More than 660,000 businesses closed their doors in that same year. Another statistical fact is that over 50% of businesses don’t make it to celebrate their 5th anniversary.What is the reason for this degree of failure?
Here are the main reasons in order:
1. Lack of Experience
2. Insufficient Capital
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
10. Low sales
Yes, there is a common thread that could lead to any of these. A bad business plan or a lack of one altogether. There are businesses that succeed without a solid business plan, but those are far and few between. Are you willing to put it all on the line and “Hope for the best?” That, my friends is crazy.
Whether new or existing, every business in this complex global, digital and economic environment needs to be on top of their game. Without forward critical thinking, any business is at risk.
Post any questions or comments you have about business plans and I will be glad to respond to all of them as we travel this road.