Why some small businesses fail?

By now majority of you certainly heard about the statistics of businesses failing in the first ten years:

  • 20% of small businesses fail in their first year
  • 30% of small businesses fail in their second year
  • 50% of small businesses fail after 5 years in business
  • 70% of small business owners fail in their 10th year in business.

(Source: https://www.fundera.com/blog/what-percentage-of-small-businesses-fail).

Wow, aren’t these these numbers absolutely shocking?! Why to start a business if chances to fail within 10 years from day one are super high!

And yet so many survived! Still fully working, still operate, expand, some of you make more cash than ever!

What’s the secret then? How to not only have the courage to start a business, but also to run it with no fear of bankruptcy?

After running my own business for exactly 10 years now and coaching, mentoring other business owners I realised I am still coming across the same issues, again and again:

  1. Lack of knowledge
  2. Micromanagement
  3. Poor time management
  4. Poor money management
  5. Lack of records
  6. Poor customer service
  7. Lack of confidence
  8. Lack of resourcefulness
  9. Lack of goal or target
  10. Procrastination.

Those are the most common reasons why many businesses struggle… And I won’t write today about all, otherwise this article will turn into a book, but I will talk about the last one: PROCRASTINATION.

What’s wrong with people? Why knowing that the delay will only cause more problems we still “are waiting for something to happen”??

Action!

Have you noticed, there are some days when you are so motivated and ready to take any action?… Those days are the easiest, most productive and always “lucky”! Looking back you praise yourself for an amazing progress you have made!

And some days are the hardest, nearly impossible! It can be that phone call you don’t want to make, solving an issue or having a hard client bombarding you with emails…

How do you talk to yourself during those days? What do you do? How do you start your day to make sure it will be the most productive?

What do film directors tell actors on the set? They shout out loud: “ACTION!” and that word moves everything and everyone! Why can’t we apply that into our lives? Our businesses? I have to admit: there were some days when I felt like doing….nothing. I bet you know the feeling? It didn’t take me long to learn that “nothing” takes me “nowhere” though… Therefore telling myself out and loud “Action!” was one of my motivational tricks! Of course it helped me later to have a business coach when I felt accountable and had to do “my homework”, as well I can see the progress of my clients now, but not everyone can afford a business coach at the very beginning…

Therefore you are most welcome to come up with your own word, phrase or strategy, whatever works for you! The most important thing to remember here is:

Your procrastination will get you Nowhere!

Author: olgageidane

I love life, have infectious energy and avoid negativity! In few words I am a Motivational Keynote Speaker, Life Changing Life Coach and Experienced Business Mentor - that all says what I do and I do it... with PASSION!

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