The simple facts are that 33% of all new business will fail within their first six months of operations, 50% will fail within their first two years and 75% of all new businesses will fail within their first three years of operation.
The primary reasons why most businesses fail are as follows:
1. Poor or Non-existent Business Plan
2. Fail to establish clear and concise goals and objectives
3. Failure to stick with the plan
4. Failure to seek advice from experienced professionals
5. Inadequate Financing
6. Failure to adequately understand the market(s) the business serves and the customers in the market. Misunderstanding what customers really want
7. Underestimating the competition
8. Poor or no marketing programs in order to attract customers
9. No means of differentiation – just another “me too” business
10. Not paying attention to cash flow
11. Lack of proper control on expenses
12. Lack of attention to accounts receivables
13. Lack of attention to inventory (excess and/or obsolete)
14. Not cost competitive – overhead too high, manufacturing inefficiencies
15. Trying to expand too quickly
16. Poor people management skills
LemonTree Studios provides professional advice and strategy development paired with cutting edge design capabilities and proven marketing techniques. Let our years of business experience work for you.
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