{"id":2647,"date":"2015-06-09T20:57:47","date_gmt":"2015-06-09T20:57:47","guid":{"rendered":"https:\/\/courses.candelalearning.com\/masterybusiness1xngcxmaster\/?post_type=chapter&p=2647"},"modified":"2019-01-16T23:43:43","modified_gmt":"2019-01-16T23:43:43","slug":"why-some-ventures-fail","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wmintrobusiness\/chapter\/why-some-ventures-fail\/","title":{"raw":"Reading: Why Some Ventures Fail","rendered":"Reading: Why Some Ventures Fail"},"content":{"raw":"\"Cartoon,<\/a>\r\n

Valuable Lessons<\/h2>\r\nThe odds are definitely stacked against small business owners and would-be entrepreneurs. According to the Small Business Administration (SBA), \"About half of all new establishments survive five years or more and about one-third survive 10 years or more. As one would expect, the probability of survival increases with a firm\u2019s age. Survival rates have changed little over time.\u201d [footnote]U.S. Bureau of Labor Statistics, BED, cited in \"What Are the Real Small Business Survival Rates?<\/a>\"[\/footnote] That's why it's so important to understand how and where things go wrong\u2014such information\u00a0offers valuable lessons on what to avoid. There are six main causes of small business startup failure:\r\n

Lack of Planning<\/h3>\r\nStarting a business without planning where you want to go is like starting a car journey with no idea of your final destination or a map to get there; you\u2019re bound to get lost. To avoid this mistake, set a clear goal of where you want to be and how you plan\u00a0to get there.\r\n

Failure\u00a0to Delegate<\/h3>\r\nWithin every business someone needs to focus\u00a0on the bigger picture and have an overview of everything happening internally and externally around the company. That person should be you, but\u00a0if your\u00a0your head is buried in the accounts, you won\u2019t. So delegate and outsource all the tasks that can be done by others, and free yourself to concentrate\u00a0on the bigger picture.\r\n

Unwillingness to Change<\/h3>\r\nAs a small business you can't\u00a0afford to stand still\u00a0while your market and the world around you moves\u00a0forward. Adapt and develop your small business so it's forward-thinking and innovative, not behind the times.\r\n

Forgetting That Cash Is King<\/h3>\r\nA small business needs to monitor its\u00a0cash flow closely. As soon as it loses track\u00a0of the money, it's vulnerable\u00a0to failure. Plot and analyze your incomings and outgoings to make sure your small business stays on the right financial track. Don\u2019t expect massive profits from the outset, but don\u2019t accept a loss, either.\r\n

Lack of Objective Targets<\/h3>\r\nFailing to\u00a0measure the success of campaigns, products, or services can be disastrous for a small business. Is that PR campaign you're\u00a0running really worth the money? Does Twitter really bring traffic to your Web site? Know what to measure, and you\u2019ll know how successful you are.\r\n

Failure to Ask\u00a0the Right Questions<\/h3>\r\nWhen you're a small-business start-up, knowing which questions (and whom) to ask is difficult. There are numerous resources, such as the SBA, local economic development agencies, and chambers of commerce, that are great places to start. Part of the process is \"knowing what you don't know,\" and such organizations\u00a0can\u00a0help you figure that out.\r\n\r\nWhile\u00a0avoiding these pitfalls won\u2019t guarantee small-business success, knowing what not to do<\/em> can help you to be proactive and focus on the things you should do.","rendered":"

\"Cartoon,<\/a><\/p>\n

Valuable Lessons<\/h2>\n

The odds are definitely stacked against small business owners and would-be entrepreneurs. According to the Small Business Administration (SBA), “About half of all new establishments survive five years or more and about one-third survive 10 years or more. As one would expect, the probability of survival increases with a firm\u2019s age. Survival rates have changed little over time.\u201d [1]<\/sup><\/a> That’s why it’s so important to understand how and where things go wrong\u2014such information\u00a0offers valuable lessons on what to avoid. There are six main causes of small business startup failure:<\/p>\n

Lack of Planning<\/h3>\n

Starting a business without planning where you want to go is like starting a car journey with no idea of your final destination or a map to get there; you\u2019re bound to get lost. To avoid this mistake, set a clear goal of where you want to be and how you plan\u00a0to get there.<\/p>\n

Failure\u00a0to Delegate<\/h3>\n

Within every business someone needs to focus\u00a0on the bigger picture and have an overview of everything happening internally and externally around the company. That person should be you, but\u00a0if your\u00a0your head is buried in the accounts, you won\u2019t. So delegate and outsource all the tasks that can be done by others, and free yourself to concentrate\u00a0on the bigger picture.<\/p>\n

Unwillingness to Change<\/h3>\n

As a small business you can’t\u00a0afford to stand still\u00a0while your market and the world around you moves\u00a0forward. Adapt and develop your small business so it’s forward-thinking and innovative, not behind the times.<\/p>\n

Forgetting That Cash Is King<\/h3>\n

A small business needs to monitor its\u00a0cash flow closely. As soon as it loses track\u00a0of the money, it’s vulnerable\u00a0to failure. Plot and analyze your incomings and outgoings to make sure your small business stays on the right financial track. Don\u2019t expect massive profits from the outset, but don\u2019t accept a loss, either.<\/p>\n

Lack of Objective Targets<\/h3>\n

Failing to\u00a0measure the success of campaigns, products, or services can be disastrous for a small business. Is that PR campaign you’re\u00a0running really worth the money? Does Twitter really bring traffic to your Web site? Know what to measure, and you\u2019ll know how successful you are.<\/p>\n

Failure to Ask\u00a0the Right Questions<\/h3>\n

When you’re a small-business start-up, knowing which questions (and whom) to ask is difficult. There are numerous resources, such as the SBA, local economic development agencies, and chambers of commerce, that are great places to start. Part of the process is “knowing what you don’t know,” and such organizations\u00a0can\u00a0help you figure that out.<\/p>\n

While\u00a0avoiding these pitfalls won\u2019t guarantee small-business success, knowing what not to do<\/em> can help you to be proactive and focus on the things you should do.<\/p>\n\n\t\t\t

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Candela Citations<\/h3>\n\t\t\t\t\t
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CC licensed content, Original<\/div>