Why do small businesses fail?

According to the Small Business Administration, more than 90% of the businesses starting today will not make it to their 5th anniversary. Of those that survive 5 years, another 90% will fail within another 5 years. After 10 years, less than 1 out of 100 small businesses remain open. Why do so many businesses start with high hopes and end up as another statistic?

The reason most businesses fail is because the owner does not develop business systems. He gets what Michael Gerber (author of The E-Myth Revisited: Why Most Small Businesses Don’t Work and What to Do About It) calls “entrepreneurial seizure”. A skilled technician decides he is tired of working for someone else and hangs out his shingle–now he’ll make the big bucks. But there is much more to owning a business than having your name on the sign.

I know because I have been there and done that. For years my business wasn’t producing the results that I wanted. I suffered all the common complaints of small business owners: unmotivated employees, too few leads, low-priced competition. And then I changed my business and my life–I developed systems.

Business success is not always a matter of working harder. You must also work smarter. Working smarter means identifying the results you want, the specific actions that create those results, and then taking those actions consistently. Developing systems and procedures for your small business provides the structure and guidelines that will consistently produce the results you desire.

My e-book, Systems Development for Small Business, will help you identify the results that you want and how to take the necessary actions on a consistent basis.

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