According to statistics published by the Small Business Administration (SBA), seven out of ten new employer establishments survive at least two years and 51 percent survive at least five years. This is a far cry from the previous long-held belief that 50 percent of businesses fail in the first year and 95 percent fail within five years.
Why is this happen?? You know you have a STRONG product. You know you have a SKILL and you already INVEST more than enough for your business. But WHY it still happening???
1. Start Business With Wrong Reason
Many of us start business because want to be rich, a lots of money, high income etc.. YES! It’s true we doing business to get high income, but the most important reason we choose to star our own business is to make people life more easier when choosing our product or services.
For example: Frozen food is invented as people nowadays has no time to prepare meal. Most of woman now were working frozen food saving their time to prepare dinner for their family after back from work. Due to this reason, we can say 90% of us have at least 1 frozen food product in our refrigerator.
2. NO Business VISION & MISSION
Without V&M, it is like start driving without knowing your destination. You know how to drive, you have a car with full tank but you keep on driving without arriving to anywhere. It’s is very-very important to have vision for your long term goal and Mission for short term.
For Example; (Taken from http://www.simedarby.com/Vision_and_Mission.aspx)
Vision: To be a leading multinational corporation delivering sustainable value to all stakeholders
- We are committed to developing a winning portfolio of sustainable businesses
- We subscribe to good corporate governance and high ethical values
- We continuously strive to deliver superior financial returns through operational excellence and high performance standards
- We provide an environment for our people to realize their full potential
Marketing really is the life blood of any business the big challenge most small business owners have very little knowledge about marketing and how to effectively do it, mainly because most have never be taught how to do it. So, in order to ensure your business will be maintain and well known in the market, study more about marketing strategy and marketing plan and implement your knowledge practically into your business.
Business owner out there, when we start a business, never say that it’s just a hobby, for fun etc. Start a business with a goal to become a successful entrepreneur and keep a positive mind that you will succeed.