? Top 5 Reasons Businesses Fail? – Does this Sound Like one of your friends?

[Christopher Morrissette]

I was on a radio show recently and we were discussing the top 5 ways that lead to businesses failing. I have noticed business failures have nothing to do with existing capital or the market they are in. After extensive research, we believe to have narrowed the reasons for business failures down to 5 items.

For background info to this discussion - here is the show on video

http://www.lukascoaching.com/myb/thrivingbusiness.html

The show can be downloaded as an MP3.

The Top 5 Reasons:

1. The business markets to themselves and not their ideal client
2. The business won’t identify who their ideal client is.
3. The business will not get expert advice or consultation in critical areas.
4. The business does not have a proper marketing cycle their customer can “walk themselves through.”
5. The business/owner lacks the competence and confidence to be successful.

I would love to hear your thoughts as we refine this list together.

Chris
Author of For Free and For Fun – How to Ask for the Appointment and Get It

[Richard Horvath]

First at all, I'm sorry, I didn't have time to watch your video, it's too long...

There is another important issue to mention:

Don't waste your time with bad customers. If they pay you always late, if they are too demanding and don't want to pay you for your extra efforts, if there is a type of community who always returns your products... just don't waste your time on them and your marketing budget!!!

Send more advertisements for those who pay you in time, appreciate your time and products and services...

[Tonya Palmer Powell]

I agree with the 5 reasons. It is really funny... just this morning I was talking with a friend about a similar subject in which he acknowledged that "confidence" (#5) was a key factor to business success. Personally, I would expound on that premise and add that knowing "who you are" and what you uniquely offer your market is equally, if not, more important.

Knowing "who you are" is the footage or grounding to confidence. Many times business owners do not realize that our clients are buying "us", what you uniquely bring to the table. Although one hates to admit it, you are not the only one doing what you do. Clients have choice, but they choose YOU.

So, in closing, I suggest a 6th reason, Knowing "Who you are?" and what you uniquely offer the market.

[Dave Baldwin]

I would say that all of these things result from being in a business that you don't really believe in strongly enough. If you're doing something that's truly your passion, your ideal clients will identify themselves, and every logistic item will eventually work itself out.

I think another part of the problem - which you mentioned in point #3, is trying to run the business alone. Almost everyone knows that millionaires aren't made in isolation, but that doesn't seem to stop nearly every business owner from trying.

Agreed 100% on number 4. A lot of businesses are built on what I call "dead end sales" and this leaves the business owner continually running on a hamster wheel to close deals that don't lead anywhere.

There's something else I would say underlies a number of items on this list - a lot of business owners lack the resources to persist long enough to succeed. This happens most commonly with brand-new business ideas that have never been done before, since there's no benchmark to go by.

[Hope Reed]

Great list. I would add something to the first reason - the business markets to their industry and not their ideal client. If you are using too much industry lingo or terms that only people on the 'inside' would understand than you are not selling to your potential clients.

[Sharon Galluzzo]

I think so many small businesses have passion but not the direction. They know how to do what they do but not how to let others know. They think that their idea is so great that people will beat a path to their door. ("Build a better mousetrap...") But you really need #1-5!!

Find out what you don't know! Ask everyone and consult experts.

Great info. Thanks!