Beating the Odds - Building a Business that Lasts by Joe Roy
For Entrepreneurs , the dream of owning your own business is exciting . You have great ideas , see opportunities to earn an income , have the time and courage to make your own decisions , and have a desire to make a difference in your community ! No one starts a business thinking it will fail , yet according to the Bureau of Labor Statistics , 20 % of all small businesses will fail in the first year , 50 % will fail by the 5th year , and 70 % will close by the 10 th year . A business that closes is devastating to the owners and her / his employees , resulting in lost salaries , wages and owner invested funds . The impact of a business closure on a community includes lost tax dollars , additional stress on public health and an increase in poverty levels . In understanding why businesses fail , my focus will be on the 30 % of businesses that have succeeded , and in doing so , we ’ ll outline what it takes to create and grow businesses that last .
1 .
Failure to Plan is Planning to Fail .
There is a wealth of business talent available to startups and existing businesses in our area . This talent can be found at SCORE and the Coastal Entrepreneurship and Innovation Center . We are fortunate to have a retiree base that has held executive positions throughout industries both nationally and internationally and is willing to give back to help others . It is not a sign of weakness to sit with someone to discuss your ideas and plans . Rather it demonstrates your commitment to doing everything possible to create a business that will defy the odds .
2 .
Who Is Your Customer and Who Are Your Competitors ?
Before you open your business , be sure you understand why your product is needed by your customer . If a similar product or service is available at a competitor , are you going to compete on price , quality or other attribute ?
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