BOISE, Idaho, December 29, 2021 (Newswire.com) - While it may sound exciting to start and run a business, it is a risky endeavor and even businesses based around a good idea can fail when there is a lack of understanding about the risks involved. In fact, the numbers are against any would-be entrepreneurs. Data from the US Bureau of Labor Statistics shows that, on average, two out of every 10 businesses fail within the first year. Only five of those remaining businesses will likely make it past five years and only two or three of them will make it past 10 years. The data shows that this has not changed much in the past 30 years and the failure rate is actually quite similar in most countries outside of the U.S. too.
Top-rated business consulting firm Success Financial Team has decided to weigh in on the topic and share some of what they know on the topic of why businesses fail and how to stop it.
Regardless of the risk of failure, hundreds of thousands of new businesses are started every year - many by those who had failed in the past and are trying again - by people who have an idea and want to be the owner of their very own business. The ability to independently control one's own destiny in the pursuit of a passion is just one of the reasons people pursue this path. However, even considering the high risk of failure, the challenges and stress that come from running a business are numerous and it is not likely to be an easy undertaking.
While this may seem a little intimidating, Success Financial Team emphasizes that one shouldn't let these worries kill their entrepreneurial spirit. Instead, try to understand the major reasons why many businesses fail to avoid their mistakes. The good news is that there tends to be a few common reasons as to why businesses fail so avoiding these can give a huge advantage. Also, despite the obstacles, the majority of business founders tend to self-report higher levels of happiness and satisfaction over their decision to start their own business.
According to Success Financial Team's experience, the most commonly cited problem for businesses that fail early is that they lacked a business plan. A solid and realistic business plan can make or break a business's early days and while disruptions happen, obstacles frequently arise, and plans can go in unplanned directions, having some kind of understanding and plan for the future to center a business around is crucial. Often, this problem stems from someone who comes up with some kind of product or service and then conducts inadequate market research. They do not properly investigate if there is a need in the market for what they have to offer or what kind of competition there might be, and this leads to bad or no planning.
Relatedly, another common problem is the failure to adapt to changes and make the relevant adjustments to a plan. The occurrence of daily problems is unavoidable and some will create larger shocks than others. This may be one of the reasons many entrepreneurs decide not to create a business plan, but this is too extreme of a response.
Rather, Success Financial Team suggests that business owners should create as detailed of a plan they can with short, medium, and long-term goals but be prepared to make adjustments along the way and expect some deviations. All of this is of course easier said than done, and it should be noted that many successful business owners find this out through trial and error with one or more failed businesses in the rear-view mirror. Luckily, experience does not always have to be gained in this way and business owners can learn many of these concepts through collaboration with other entrepreneurs or consultants who have the experience, expertise, and knowledge needed to start and run a successful business.
Success Financial Team is a nationally recognized consulting firm that helps business owners push past the obstacles that lead to failure and, instead, helps them establish a strong presence in local communities while creating sustainably growing revenue streams. Through Success Financial Team's services, business owners can learn to create a strong foundation of repeatable processes that are proven to work and keep a business growing. While Success Financial Team is not a franchise, the businesses processes they teach are similar to how franchise operations are successful - in that the head company hands down a set of processes for its franchisees to continuously follow.
However, while these franchise operations tend to get a leg-up with the use of a powerful brand, smaller local businesses that are still in the process of creating a brand will need to approach the problem differently. A key part of Success Financial Team's approach is to offer individually tailored solutions to its clients and provide exactly what they need in the circumstances they are in. The consultants and experts at Success Financial Team understand that there is no "one size fits all" solution for businesses and works with the clients to tackle problems and help them build a set of repeatable processes that work. With the help of Success Financial Team, business owners can comfortably expect to get the help they need and become one of the few businesses that achieves long-term success.
To know more about Success Financial Team and its services, please visit https://successfinancialteam.com/. For questions, suggestions, and other concerns, feel free to send an email to firstname.lastname@example.org at any time.
Source: Success Financial LLC