My Fast Entrepreneur instructor and SCORE mentor, John Wyman, suggested this topic the other day for the blog,”……why do so many small businesses fail?” He gave us a list to read before our class next week. If I ran this list by a friend whose small business failed to thrive, he’d tell you that he did everything wrong on this list.

Here’s what I think. First, he didn’t believe that it was necessary to write a plan, so he didn’t have a plan (#1 on Wyman’s list). Second, he didn’t know enough about starting a business, so he didn’t partner with a mentor (#11). Third, he wasn’t good at doing the math. He thought his revenues were covering his expenses. He didn’t base this thinking on an actual analysis. He didn’t partner with an accountant (again #11). Fourth, he overspent. He grew his business too fast (#8) and didn’t have enough to cover additional expenses. Fifth, he blamed his problems on someone else (“she made me do it). He didn’t take responsibility.

Of course, there are plenty of other reasons  why so many businesses fail but take heart. Sixty-seven percent of new businesses are successful, on average, after four years, according to SCORE’s Simple Steps for Starting Your Business. Only thirty-three percent fail.

Do you want to bet your future on winging it (the 33% group) or on a plan (the 67% group)?

Related Stories
‹
Simple Problems: Simple Solutions
The facilitator for the April meeting of the Chamber of Commerce Small Business Roundtable was Tori Williams Reid, Ph.D., co-owner of Right at Home – Durham/Chapel Hill, an in-home care and assistance company. During a session entitled Simple Problems: Simple Solutions, Tori invited participants to share current business problems and then for each one, she […]
Good Green Business At Open Eye Cafe
Who needs paper when you can just write someone’s order on the counter? Good green business by Open Eye Cafe; in Carrboro. Important keys to success: Dry erase markers Metal, glass or other surface from which dry erase markers will easily erase. Got any other examples of good green business? Tell me in the Comments […]
Fiscal Cliff
I was very fortunate to receive an invitation to visit the White House last Thursday. I was among a delegation of 40 community leaders from across the state of North Carolina who were asked to join in a conversation with the White House Office of Community Engagement about the impending fiscal cliff. Now the fiscal […]
We Need a Better Plan for Transit. Vote "No"
There’s a 1/2 cent sales tax referendum on November’s ballot. It will be used to fund a 25-year, $660 million plan for light rail and other transit in Orange County. Separately, the commissioners and Triangle Transit Authority (TTA) will add $10 to the annual vehicle registration fees. If the tax passes and the fees are […]
Itching to Make...Cents
Last week’s assignment was to create a pro forma budget. It is an “operating annual budget,” John Wyman tells us in class. If you don’t know what an operating annual budget is, it’s a list of numbers. To put it simply, it has revenues on one side and expenses on the other side. When you […]
On Vandals & Customer Service
I posted Welcome to Notre Dame so it seems now would be a good time for a reminder.  Except instead of welcoming Phoenix Fans from Elon, now it would be more appropriate to welcome the Vandals from Idaho. So here ya go, a sign for your window: And in […]
Beginning with a Business Concept
You say you have an idea to sell. You say it’s a really unique idea. You also say no one else does it. If you run it by John Wyman, chances are he may ask if you’ve researched your idea. He may tell you that your industry is full of vendors selling your idea “because […]
BOCC Imposes New Zoning Over Community Opposition
In the biggest reflection of how business will be done in this new era of dedication to economic development as the County’s number one priority, the Count Commissioners voted 5-2 to rezone the Eno Economic Development District (EDD) for commercial use. This EDD was created about twenty years ago and has existed only in the […]
Reform Building and Zoning Codes for Affordability
Building & zoning codes drive up the cost of construction. The state building code originates in the N.C. Department of Insurance, so you know they are quite content to spend your money to minimize future claims. The building codes are rife with overbuilt requirements, and building-code officials (in an understandable desire to make sure they […]
And the survey says....
You know those surveys you fill out and then forget about? Do you ever wonder, but never know what other people said? Do you ever wonder if the input made a difference anywhere? Do you ever wonder if your responses were even read? Today I want to remind you about the survey posted right here […]
›