I realize this is a topic entrepreneurs would rather not talk about. But with a recent statistic showing that approximately one in every three new businesses fail within the first two years, it can no longer be ignored.
As harsh as this might sound, businesses don’t fail by themselves. Instead, businesses usually fail on account of the owner. The sad part about it is that in most cases, the business owner is oblivious to the fact that the ship is sinking until it is too late.
However, with the availability of professional counsel and advice, inexperience no longer has to be "the Mean One (i.e. the Grinch)." It need not be an obstacle to success. Surrounding yourself with the "key players" will help you build a strong and healthy business for years to come.
In this podcast, I discuss the twelve reasons why new businesses fail. I've assembled this list not because I want to discourage you or take the wind out of your sails but instead, so that you won't repeat these mistakes. I want to see your business succeed and ultimately thrive. To the extent that I can help you navigate the choppy seas of the start-up world and avoid common pitfalls along the way, I will have done my job.
Before you launch your new business, stop and ask yourself: “Will I be making one or more of the following mistakes?”
Below is the list. In Part 1 of this podcast, I discuss the first five reasons. In Part 2, I discuss reasons six through twelve.
1. Lack of business planning
2. Lack of Knowledge
3. Lack of Product/Service Differentiation
4. Poor Management and Operations
5. Not Knowing What Customers Need
6. Lack Access to Capital
7. Lack of an Exit Strategy
8. The Wrong Partner
9. No Online Presence
10. No Marketing and Public Relations
11. Significant Market Changes
12. Indifference Towards Cybersecurity
