[This article first appeared in the June issue of the Charlotte County Chamber of Commerce's June 2012 Newsletter. Part 2 will be published in the July Newsletter.
Also, if you receive the Chamber Newsletter, keep your eye out for an insert with a very special and tasty offer coming in your July Newsletter!!!]
One of the
best business books ever written is the classic "Think and Grow Rich"
by Napoleon Hill. If you have not read
the book, I highly recommend it. A note
of caution. The title is
misleading. It should really be called “Think, Take
Action and Grow Rich”. In one Chapter of his book, Hill offers the 30 reasons why most businesses fail. In my experience as an attorney practicing
law for over 24 years, I have come across many of the same common downfalls I
see in small businesses which lead to ultimate failure. While I don't agree with all 30 of Mr. Hill's
reasons why businesses fail, I did pick my top 10 reasons from his list. Since space does not allow me to cover all
10, this will be a two part series with the first five presented below.
While the
following list is not all-inclusive of the reasons businesses fail, these are
my top 10 reasons listed in no particular order:
1. Lack of ambition to aim above mediocrity.
Too often, especially in this new economy, good enough is no longer good enough.
Businesses that do not seek to go the extra mile in the new economy will
ultimately be left behind when competing against companies that go above and
beyond their customers’
expectations. Think Disney!
2.
Lack of self-discipline. All entrepreneurs are excited about starting a
new business. However, if they fail to implement systems and impose standards
upon themselves personally, and their employees, that will allow them to
provide a consistent, high value (not to be confused with cost), product or service
to their customers, they are doomed for failure.
3.
Procrastination. We all suffer from this at times. However, as a small
business owner, procrastination can be the death of your business, especially
when it comes to marketing. For example, with regard to the Chamber, many businesses
do not take advantage of the marketing opportunities provided by the Chamber in
a systematic fashion, such as providing information in our weekly e-newsletter,
Business Online, or regularly attending events such as our breakfasts, lunches
and after hour business card exchanges.
Putting this type of marketing off by saying: "I'll do it next week”, may lead to
“next week” being the
last week that you're open.
4.
Negative personality. Think about it.
Do you like dealing with someone who's always down and is always
negative in their thoughts and the prospects of the future. It is very easy to
join in with the naysayers about how difficult it is in this new economy. However, if you wish to succeed, your mindset
must change and you must take control of your future and not be controlled by
the negative thoughts of others. As the
leader of your business, you must convey a positive attitude to your employees
if you want them to convey it to your customers.
5.
Wrong selection of associates in business. If I were putting these in
order of importance, this would be number one. Too often I have clients come to
my office who want to form a business venture and they tell me, literally, that
they only know each other for a couple of weeks. Those of you who may have been in business
partnerships for a long time know that it is just like a marriage which
requires give and take and excellent communication skills. Good communication between partners is
essential, and a common belief in the mission of the business and how it will
proceed is vital. While different
personalities and different skill sets can enhance the business, the
differences must complement each other and not result in constant agitation and
conflict.
This
is the first five of ten reasons. Look
for the next five in the July Newsletter. I hope the foregoing will give you
something to think about with your business. If you have any questions or
comments please feel free to contact me at mark@martellalaw.com, and I'll be
happy to discuss these with you further.
