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. Choosing a business that isn't very profitable
Inadequate cash reserves.
Failure to clearly define and understand your market, your customers, and your customers' buying habits
Failure to price your product or service correctly
Failure to adequately anticipate cash flow
Failure to anticipate or react to competition, technology
Generalisation. Trying to do everything for everyone is a sure road to ruin. Spreading yourself too thin diminishes quality
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
Putting up with inadequate management.
Lack of self-criticism. More dreamers than doers