Keith Gilabert, "Top Five Reasons 80% of All New Businesses Fail"
by keithgilabert, Window Shopper
- Created: January 17, 2014, 8:33 pm
In my 20 years of studying business models, the #1 question asked by entrepreneurs is why do businesses fail. Here are the top five reasons I have observed personally: 1. Not enough demand for the product. I have seen a great product with excellent profit margins but unfortunately not enough demand. Think twice about single product business concepts. 2. Dysfunctional management. The owners continue to make the same mistakes over and over. 3. A declining market. If you study McDonalds you will see that they reinvent their menu and remodel their stores every 5 years. This keeps the concept fresh in the minds of the consumers. 4. No Reserves. If for whatever reason your business slows, make sure you have significant reserves. 5. Lack of unique value. Examine your product offering ask yourself how am I better than my 3 closet competitors. If you can stand out then go for it. 80% of all new businesses fail in the first 18 months. Good luck, Keith
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