NEWS

STARTUPS SUFFER: because more dreamers than doers


Over 50% of small businesses fail in the first year and 95% fail within the first five years. Regardless of the industry, failure is the result of either the lack of management skills or lack of proper capitalisation or both.

Common Causes of Failure
  1. 1. Choosing a business that isn't very profitable

  2. Inadequate cash reserves.

  3. Failure to clearly define and understand your market, your customers, and your customers' buying habits

  4. Failure to price your product or service correctly

  5. Failure to adequately anticipate cash flow

  6. Failure to anticipate or react to competition, technology

  7. Generalisation. Trying to do everything for everyone is a sure road to ruin. Spreading yourself too thin diminishes quality

  8. Believing you can do everything yourself. One of the biggest challenges for entrepreneurs is to let go. Let go of the attitude that you must have hands-on control of all aspects of your business

  9. Putting up with inadequate management.

  10. Lack of self-criticism. More dreamers than doers