Why Is Running A Business So Tough?
Tuesday, February 15th, 2011Several of my clients have asked me recently, “why do so many businesses fail?”
I’m certain you know at least 80% of new businesses fail within the first five years. My own observations are the percentage is likely to be optomistic.
I certainly know that the number of people who have tried and failed at starting a new online business is dramatically worse than those numbers.
The simple answer is running a business is a very complicated affair. It’s much more difficult to run a business then say, being a finish carpenter. I make that remark with the greatest of respect for carpenters and other trade people.
The point is, the success rate for people in trades is very high. Tradespeople, whether they be carpenters, project managers, doctors, accountants or anything similar are programmed to be successful. All of these professionals received significant training in school and on the job which assures most of them success.
The are very few places where anyone can go to learn the art and science of business ownership. Certainly you won’t learn how to run a successful business by giving a MBA from a prestigious business school. Those degrees will position you well to be a highly paid employee, but what you’ve learned in school doesn’t transfer to real life, bottom line business success.
There is one group of business people that do enjoy a higher than normal success ratio. Those are franchisees. Their success is assured by the system’s processes and procedures developed by the franchisor.
I have found, that like the franchise system, there are three critical elements of business success.
These three vital components are;
- A management system
- Managers skilled in business essential skills
- A winning state of mind
It’s these three components that I’ve built my entire business at Leriot around.
