HomePlanning7 Reasons for business failure, and the #1 reason is…

As I have talked with numerous people regarding their businesses I am in constant discussion with others about what they do and how they do it. I had a conversation with anther small business and he stated something that reenforced what I have seen. He said, “More people only love what they do, not do what they need to do.” What does he mean?

There is the craft of your business and then there is the business of your craft.

Craft of your business. The craft of your business is your talents, skills, and knowledge of solving a problem, whether you’re a doctor, lawyer, plumber, graphic artist, copywriter, engineer, architect, or even a trash collector. It’s the skills and talents of your job, but use the word work, it’s much more encompassing that a “job.”

Business of your craft. The business of your craft is about making a profit, understanding basic economics, the rule of law, human relations, sales, marketing, running a business, project management, finance, and a host of other topics.

Here is a short list of why businesses fail:

7. No viable market for a product or service, know your audience (Product).
6. No understanding how your business is different (Value of Product).
5. No understanding of the costs of a startup and other resources needed (Costs).
4. No enlisting other experts to help you such as SCORE, accountants, attorneys, etc (Experts).
3. No understanding of the pace of business and change (Change).
2. No knowing when and how to be flexible (Timing).

And the #1 reason people fail in business is:

1. No knowing the purpose of and how to run a business (Business).

So, while having a good product that a customer wants, i.e. #1 and #2 above, once that is tackled the rest have an affinity around the business of your craft, how to make money with your talent.

And the #1 approach by people who succeed in business is:

What do you call a failed entrepreneur in Silicon Valley? Experienced. Anywhere else in the US and you have to change your name, move to another town, or parents hang their head in shame toward friends. In Silicon Valley after hearing about your first failure they ask, “What’s your next company going to be?”

That’s why I have released the Second Edition of How to Start a Business: Mac Version with updated content. I’ve learned some more about what it takes to be an entrepreneur and taken out what has been less effective and added what is more effective. And, I have a price reduction.

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