According to Bloomberg, 8 out of 10 entrepreneurs who start businesses fail within the first 18 months, (A whopping 80% crash and burn). and 99.9% will fail within ten years.
But why? What can we learn from the colossal amount of failure with small business that we can apply to our own business aspirations?
And yes, at surface level the primary reason businesses fail is they simply run out of cash.
The cracks in the foundation start well before the brutal day of financial collapse.
5 reasons for failure :-
Reason #1: Not really in touch with customers through deep dialogue.
Reason #2: No real differentiation in the market ( lack of unique value propositions).
Reason #3: Failure to communicate value propositions in clear, concise and compelling fashion.
Reason #4: Leadership breakdown at the top.
Reason #5: Inability to nail a profitable business model with proven revenue streams.