{"id":1892,"date":"2020-01-01T20:16:11","date_gmt":"2020-01-02T04:16:11","guid":{"rendered":"https:\/\/southernoregonbusiness.com\/?p=1892"},"modified":"2020-01-01T20:48:40","modified_gmt":"2020-01-02T04:48:40","slug":"50-reasons-why-some-businesses-fail-while-others-succeed-3","status":"publish","type":"post","link":"https:\/\/southernoregonbusiness.com\/50-reasons-why-some-businesses-fail-while-others-succeed-3\/","title":{"rendered":"50 Reasons Why Some Businesses Fail While Others Succeed"},"content":{"rendered":"\n

THREE PART SERIES: PART THREE<\/strong><\/p>\n\n\n\n

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By George Meszaros
Cofounder – Success Harbor <\/em>https:\/\/www.successharbor.com\/<\/a> <\/p>\n\n\n\n

Read Part 1 here<\/a> and Part 2 here<\/a>. <\/p>\n\n\n\n

Why is it that so many businesses fail while so few succeed<\/a>?<\/p>\n\n\n\n

One of the great mysteries of entrepreneurship is why businesses fail. Some people start one successful business after another while others fail to succeed.<\/p>\n\n\n\n

Why some businesses fail while others succeed?<\/p>\n\n\n\n

The worst part about a failing business is that the entrepreneur is unaware of it happening until it is often too late. It makes sense because if the entrepreneur really knew what he was doing wrong, he might have been able to save the business. Some entrepreneurs live in a land of denial while others are unaware of their mistakes.<\/p>\n\n\n\n

One thing for sure, a business almost always fails because of the entrepreneur.<\/strong><\/p>\n\n\n\n

\u201cIt\u2019s not the plan that is important, it\u2019s the planning.<\/em>\u201d Dr. Graeme Edwards<\/p>\n\n\n\n

There are over 28 million small businesses in the United States, according to the SBA<\/a>.<\/p>\n\n\n\n

It\u2019s an impressive number. The sad reality is that only about 50% of them survive. What\u2019s worse is that only about one-third survive 10 years or more. The life of an entrepreneur<\/a> is unforgiving. It is a constant challenge. There are many moving parts. Any one of them could put you out of business.
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Here are some effective ways to turn your idea into action:<\/p>\n\n\n\n

34 \u2013 Believe that you can do it. <\/strong>I don\u2019t mean fooling yourself into anything, but the only way can you make it happen if you believe that it will happen.<\/p>\n\n\n\n

35 \u2013 Reach out to mentors. <\/strong>There are many successful people within your own existing network, and you can also make new connections. Connecting with mentors helps you hear what it takes to be an entrepreneur.<\/p>\n\n\n\n

36 \u2013 Minimize risk, but understand that it is unavoidable.<\/strong><\/p>\n\n\n\n

37 \u2013 Give it due time. <\/strong>Ideas are fast, but making them happen will take time. Even if all goes well, almost everything you do in business will take longer than expected.<\/p>\n\n\n\n

38 \u2013 Get others to believe in you. <\/strong>Successful entrepreneurs are great at selling their visions. You might have to convince vendors, partners, landlords, investors, employees, or a list of more people.<\/p>\n\n\n\n

39 \u2013 Prepare to fail \u2013 <\/strong>Do not fear failure. There is one thing for sure, you will fail before you succeed. Expect failure but don\u2019t fear it. Think of it as a normal part of your business. It is necessary. It is good for your business. It teaches you. It helps you make the right decision the next time. It is super important that you don\u2019t associate failure with quitting. Only those that take action fail and only those that take action succeed.<\/p>\n\n\n\n

40 \u2013 Pivot, rinse and repeat \u2013 <\/strong>Successful entrepreneurs are always adjusting. There are many reasons to adjust. Your customers might ask for a new software feature. Or, the recession might have put your best customers out of business. The price of raw materials might rise one day. Your business and its environment are dynamic. If you are good, you develop a keen eye for changes and make quick adjustments. Most businesses that fail do so because they ignore the world changing around them.<\/p>\n\n\n\n

41 \u2013 Focus on your customer \u2013 <\/strong>You customer keeps you in business and puts you out of business too. If you listen to them, you can improve your products or services. If you ignore they fire you. Customers don\u2019t disappear, they go to your competitors. Reach out to your customers. Ask them questions. Ask what they like or dislike. Welcome negative feedback. Don\u2019t be defensive about it. Negative feedback gives you a chance to improve.<\/p>\n\n\n\n

42 \u2013 Stay profitable \u2013 <\/strong>Staying profitable will solve many problems. The lack of profit could put you out of business even if you have record sales. Forget sales. Forget your revenue. Forget the total number of customers. Always be mindful of profitability.<\/p>\n\n\n\n

43 \u2013 Manage cash \u2013 <\/strong>Entrepreneurs that fail often confuse cash flow with profit. The two are not synonymous. It is possible for you to go bankrupt with record cash flowing into your business. To succeed in business you don\u2019t just need cash flow, you need positive cash flow. With positive cash flow happens when the cash funneling into your business is more than the amount of cash leaving your business. It is simple yet often ignored. The companies that ignore this end up with negative cash flow. This happens when the outflow of cash is more than your incoming cash. You should never allow negative cash flow.<\/p>\n\n\n\n

Here are 10 of the most profitable companies in the world:<\/strong><\/p>\n\n\n\n