Most business owners build a business in order to build a better life. Unfortunately there are far more businesses that fail during the start-up phase than there are businesses that succeed. These businesses typically fail for the following reasons:
- They start for the wrong reason and there is inadequate passion to see the owner through the challenges of a new business
- Insufficient research goes into the business and this culminates in inadequate planning for the various aspects of managing the business
- The owners have the wrong skill set and a lack of knowledge required by the business
- The owners have inadequate access to networks
Sadly, even more businesses fail annually for the same reasons when they reach the growth phase.
Of the businesses that survive the growth phase, very few can operate independently of the owner and as a result, the owner cannot exit the business through a sale or by having the business operate independently as part of a wealth-generating portfolio.
While there are many reasons for business failure, there are just as many strategies to counter problems before they arise.