What Percentage of New Business Owners Succeed?
There is no accurate data available to answer this question, since so many businesses are now home based or virtual. The answer to this question also depends greatly on the industry. One of the highest rates of failure is the restaurant business. According to INC magazine 33% of all new businesses fail within the first six months, but again this depends greatly on the industry, experience of the owner and timing. You can improve your chances of success, by understanding why most new businesses fail which include the following eleven reasons:
ONE: No clear plan or revenue generating strategies
If you don’t know where you’re going, you will not get there.
TWO: Under funded
Many businesses fail, because the owner runs out of money.
THREE: Failure to measure goals and objectives
Often new owners become too involved in daily activities vs. measuring sales against identified goals and objectives
FOUR: Lack of knowledge of industry or targeted clients
It is important to obtain knowledge, understand trends and know how to identify opportunities that represent best business.
FIVE: No differentiator
Many businesses fail because they do not differentiate themselves from their competition.
SIX: WWD focus vs. WIIFM
New business owners often have a WWD (What We Do) message vs. focusing on the WIIFM (What’s In It For Me) of the prospective client.
SEVEN: Lack luster marketing strategy
In order to ensure that your business succeeds, in the first few months you will have to implement marketing programs, which get the attention of, and appeal to the needs of your target customers.