Starting a business is an exciting venture. Increase your success rate with these fiscal facts.
The first five years of a business startup are crucial. For your business to succeed beyond that, a few steps that are missed by several business owners will make a difference in the future progression of your company.
Learn from mistakes and financial risks taken by former businesses with these statistics.
- 42% of companies lack market research
- 29% ran out of business finances
- 17% sold a product that was of no interest
- 17% started without a business model
- 14% refused to advertise or used inadequate marketing
Nine Reasons for Unnecessary Business closure
- No market need
- Ran out of cash
- Not the right team
- Got outcompeted
- Pricing/cost issue
- Poor product
- Need/lack of business model
- Poor marketing
- Ignore customer
In a study conducted by Harvard Business School by Shikhar Ghosh and a study by Statistic Brain Research Institute, it was concluded that the failure rate of U.S. businesses after five years is more than 50 percent. After ten years, the rate increased to 70 percent. Below are the seven key reasons why it happens.
- Lack of focus
- Lack of motivation, commitment and passion
- Too much pride, resulting in an unwillingness to see or listed
- Taking advice from the wrong people
- Lacking good mentorship
- Lack of general and domain-specific business knowledge: finance, operations, and marketing
- Raising too much money too soon
During startup, a few key elements used by entrepreneurs can lead to maintaining constant growth or losing it all if not executed properly.
Business Growth Objectives to Keep in Mind
- Stay focused
- Always have access to financial mentorship
- Have a trustworthy team
- Understand the needs of your target customers
- Be driven by impact, passion, and commitment
- Careful observation, extensive listening, always learning
- Be aware of your expectations vs. fact and certainty
If you are challenged with your business venture or have taken financial risks that have put your business in jeopardy, you need assistance. Use your local Everett Bankruptcy Attorney at Skelton Law to assist in your business ventures. You may not even know the valuable information that Skelton Law can find that can save your business, your time and your well-being.