Why do businesses fail at a rate of 9 out of 10?

Only one man in ten who start a business will make it, the rest will fail.  Yes, the other nine will be hard working, earnest and ambitious men, …in their own way – but to them a course is a course and a book is a book. They read but they don’t see, they listen but they don’t hear. But ONE in ten will make it. One in ten knows what they want in life and they get it.

They know they need to practice, and they practice their business skills all the time. They know the only certainty in life is change. They seek and find answers to new challenges every day.

It is said that Socrates the Greek philosopher (469-379 BC) was the wisest man who ever lived. The story goes that if you would have asked the Greeks in ancient Greece why they thought Socrates was a wise man, their would answer, “Socrates said; I know that I know nothing”.

The market for business knowledge is booming. Every year thousands of business books is published. Books on business start-ups, marketing, sales and business management floods the market. Governments poured millions into training programs and consultants to help create new entrepreneurs. Stop and ask yourself;- Why then, are there still so many business start-ups that fail? Why do nine out of ten people fail to implement the book knowledge they’ve worked so hard to acquire?

According to Thomas Ci-Gar, Life & Business coach and freelance consultant for the South African Chamber Of Entrepreneurs (SACE) ;- “Business fail because new entrepreneurs don’t know what they are doing. In many cases they can not ever write a business plan, let alone try to implement one. They just don’t follow the rules. They have very little or no business experience. But the most important thing, they can’t sell. They may be very intelligent people, but all the books in the world will not help them if they never learn to follow the recipe.”

Every good business book is like a baker’s recipe book. In business, like in a good cookbook, there is a recipe for every situation. Nothing is new.  Starting a business is like making a special dinner or baking a cake from a recipe book.

It is easier than you think BUT only if you know how to follow the steps, one-by-one. That is exactly what a recipe book is, a step-by-step manual. In the real world, if you try to bake a cake the first time, there is a very good chance that your cake will flop. You need practice. Practice first, get it right and only then you invite the queen for tea.
I call it the “TIPP” – formula. Try the recipe first. Implement it. Practice it until it becomes Perfect.

Your business plan should be like a recipe book, a step-by-step manual. Most would-be entrepreneurs think the only purpose of a business plan is to seek shareholders or to get a loan from the bank. Then they get someone else to write one for them. This is crazy  – without YOUR OWN plan your business will fail – it is a 99.9% guarantee!

I have seen young school kids who learned from an early age how to write “to-do-lists” for small things they want to achieve. Entrepreneurs can learn from them. Long before you resign your job to start your own business, start writing “work-to-do” and “steps-to-follow –lists” for new things you want to try in your life or work. Learn to write a plan to do these small things and then follow the steps to accomplish the task. Use a business start-up book to guide you to achieve these goals. You will be amazed what you will learn.

Here is something most important. You must practice to sell. Selling doesn’t only mean one-on-one selling. There are many books on selling and marketing. We are living in wonderful times. Never before in the history of mankind was it easier to sell your products and services to the entire world than right now. The Internet has opened more doors than you can imagine.

Know this. Most great businessman in this world started small. Robert Kiyosaki started by selling comic books. Donald Trump started his business career selling houses. Richard Branson started at the age of 15 selling a student magazine. None of them do it any more, but they learned to sell.

Experience in selling is vital to the success of any entrepreneur. To sell is fun, and for me it has become much easier the longer I do it. I think it is easier today because I have read more books on the subject that I can remember. I have learned to implement the rules in these books, I have practise selling and negotiating for many years and formulated new recipes for myself. You can do it to.

I believe there is a “ recipe-book” for every situation in this world. How to sell, how to manage a business, how to write a plan and how to live your live. All you have to do is find the recipe and follow the steps. One step at a time.

Running your own business should be great fun. If it isn’t, then you are doing something wrong. To often I see businesses suffer and when that happens, I see the owner and his entire family suffer. It is sad to see anyone torture themselves like that when there is so many step-by-step books available. Stop for a moment. Have a good look at what your are doing. Find out what is wrong in your live or your business. Search for the recipe to fix it. Try it, implement what you have learned, practise your new skills, make it perfect and your life will never be the same.

One of the most difficult transitions for the would-be entrepreneur is to move from an employee mindset to an entrepreneurial mindset. This transition is extremely crucial; in fact, without it, business success is not possible.

The fact is, businesses do not run themselves – their owners do! But remember, before you can run your own business, you need the right mindset.

You can visit the South African Chamber Of Entrepreneurs at their website
www.sa-chamber.co.za and download their free Audio and Video coaching program called,  “How To Build A Champions Mindset”.  This is your FIRST step to success.

Author: PR Officer

Share This Post On

Leave a Reply