5 Reasons Why 60 Percent of Businesses Do Not Make Money
Statistics show that new businesses only have a fifty percent chance of surviving five years. In any given year, up to thirty percent of businesses lose money. Another thirty percent barely break even. To avoid becoming a failure statistic, keep these five tips in mind to help ensure business success.
It is estimated that up to 90 percent of these resolutions will fail.
Why is that? Though the specifics may vary, for most people, it comes down to a lack of planning and knowing what to plan?
The same is true in business. For many entrepreneurs, yearly planning revolves around growth and success in the New Year. However, without understanding the pillars of a successful business, such success will likely never occur.
It is important we start early when it comes to putting thought into our New Year. If we wait till the New Year to do so, then we will never have enough time to put the right pieces in place in order to implement anything different.
- Think like a marketer: Most people get into business due to a passion for their specific product or service. While this passion is essential in order to develop a product that consumers will want to buy, it should never be a business owner’s exclusive mindset. For real success, start thinking like a marketer.
Put yourself in your clients’ shoes. What will excite them? What will get their interest? What will motivate them to buy?
A marketing mindset doesn’t neglect product quality and business prowess; it merely harnesses those elements and gears all decisions toward meeting the needs of consumers, which will lead to more profits in the coming year.
- Be coachable: Everyone knows that Michael Jordan is one of basketball’s all time greats. However, for as much inherent talent that Jordan had, he achieved the most in his career because he was coachable. When Phil Jackson joined the Bulls as their coach in 1989, Jordan made a point to welcome his coach in front of his teammates and say, “I am coachable and ready to learn.” Jordan could have had a good career no matter what his attitude, but he had a great career because he was coachable. Top athletes have a coach. Top actors, musicians, and artists have coaches, too. So it only makes sense that top entrepreneurs have a coach as well.
No matter how good you are in business, make sure you are always open to learning.
- Walking Through The Mind Field: More than seventy percent of business failures could have been avoided if people got proper professional advice. What is the best thing you can have when crossing a mine field? Not a map, not a GPS, but someone who has already walked through that exact mine field and succeeded.
In the business mine field, find someone who has had the business success you desire and learn from them. Don’t make the mistake of thinking you can do it alone. Actively seek guidance and insight from others in the field.
- Get off your ass: In 2006, the movie “The Secret” tried to convince audiences that good intentions made all the difference. While it is true that good intentions are important, the central theme of that movie has hurt more people than it has helped. You can have the best intentions in the world, but if you never do anything with those intentions, it’s nothing more than a fancy idea floating in your head.
Stop intending for success and get off your ass and make it happen.
- The power of three: Everyone does only three things that account for ninety percent of their total income. Understanding this fact can help revolutionize your daily functions and will dramatically improve your profits.
Spend time identifying the three things that lead to your income. Once you know what these three things are, reorganize your priorities so that eighty-five percent of your time is devoted to those things and delegate the rest. With that kind of focus and dedication, you will see viable increases in your profits.
This can be your best year yet. Take action and let this be your year to shine.