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10 Reasons Why Most Businesses Fail

    • 8 posts
    March 11, 2009 8:34 AM EDT
    I have actually found that lack of research hurts soooooo many business`s.  Is there somebody who does this better?? cheaper?? Exactly who are my customers???  What do they want???  What are their spending habits?? hobbies?? reservations about my product or service???  Make a list...and just start pitching your idea to anybody who will listen.  You will be terribly surprised by their questions.
    • 8 posts
    March 12, 2009 4:19 AM EDT

    here is the research I did in creating my start-up!!  I hope this helps.  If you want to see what this lead to check out my profile.

    I paid three separate groups to compile my research.

    1. Wal-Mart electronics department

    2. Gamestop

    3. Domino`s Pizza

    4. Blockbuster Video

    5. X-box Live

    Each group was given a check list and sometimes a tool to measure the information I needed to compile.


    Wal-Mart`s check list asked 100 parent`s & relatives how many games they buy their kids in a year. The average was 3!


    Gamestop they had two checklist asking how many times are games traded? and what is the average age of a gamer buying for themselves and on release date where do you buy your games?

    A sticker was put inside the inside case of 100 traded games...the average number of times a game was traded was 4. You just doubled your money on one game!

    Average age of gamer`s was 31 years old!

    On release date they ran to Wal-Mart to buy their games at midnight! 44% percent of the time they were out of their game. They threw that info in for free.

    Domino`s Pizza out of a 100 customers 62% were either watching movies or gaming!

    Blockbuster Video

    Out of 100 customers how many were getting food to go, or delivered?

    48%

    Xbox Live

    Out of 100 people what are you eating & drinking while you play? Why are you eating that particular food? Are you alone or with your friends?

    Chinese was 43% why because they deliver!

    Pizza was 42% because they deliver!

    Subs, Cheese Steaks, and Mexican rounded out the rest of the field.

    Drinks

    sodas were 61%

    energy drinks & caffeine based products such as Starbuck`s double shots rounded out the rest.

    These numbers gave me my target customer base, single or working parents, and the hardcore game! They are the ones who will buy my products on a consistent basis.

    • 8 posts
    March 12, 2009 8:16 AM EDT
    Unfortunately still need to find an investor...because this is a hybrid and never been done, it is hard to convey exactly the return...My figures only show about 60 % of the actual return.  The other potential monies can`t be measured.  At an investment of 112,000 you would think  return of 45% of 1.4 million would be enough to sway investors.
    • 8 posts
    March 21, 2009 2:22 AM EDT
    Dinner & a Movie "Delivered!"

    here is my business....it is the my answer as to why some business`s fail.  I believe hybrids will dominate the market...look at Wal-Mart just one big hybrid...i appreciate any comments, criticism, or help...still looking for investors.

    Denton3/21/2009 8:28 AM
    • 14 posts
    February 17, 2009 7:02 AM EST

    They lack "passion" for what they`re doing.  If you do what you love, you`ll love what you do and others will feel your passion and be inspired by you. 

    They don`t have a "vision".  Some people can`t see beyond the $$$.  They know they want to make money and they have some idea of a plan but they can`t visualize it.  That`s a post in itself.

    • 9 posts
    November 6, 2011 7:42 PM EST

    Also, you have to be in it for the long run.

     

    Chris
    Owner Cel Financial Services
    CTEC Tax Preparer Registered Bonded California
    Please visit my website for all your Income Tax Fillmore needs.
    http://www.merchantcircle.com/business/CEL.Financial.Services.Tax.Preparation.Fillmore.805-625-0796

    ---
    Chris Owner Cel Financial Services IRS Registered Tax Return Preparer Registered bonded California CTEC Tax Preparer http://www.taxprepfillmore.com/

    • 13 posts
    November 10, 2011 2:03 AM EST

    I think it`s a great article, too, and would add "lack of follow-up." It`s more than customer service, it`s day-to-day correspondence, answering questions, helping people complete an order. :)

     

    Christian Book Stores



    ---
    Christian Book Stores

    • 60 posts
    February 17, 2009 7:57 AM EST
    There are a variety of reasons why most businesses fail. Following are the ten most common reasons: ...
     
    Hello David, great post here mainly because I like the controversy it stirred up--would be fun to watch in a conference room setting. Anyway, this got me thinking about how controversy can be used as a business strategy to attract um... new business. Remember the Donald Trump/Rosie O`Donnell controversy? Neither one suffered from lack of press.
     
    The Business Plan argument: Well, I`d just like to add an embellishment if I may. I personally keep a Corporate Journal. Some call it a Corporate Book. I believe this is an effective way of keeping a Business Plan, however structured, on track. I recently put this into practice and it`s helped immensely regarding productivity and accountability (to myself) as a one-person operation. 

    ---
    Chas T.
    "You can always better your best."

    CT on Twitter

    • 60 posts
    February 19, 2009 6:23 AM EST
     In the beginning of my journey as a new business owner, one of the major issues running my business was "customer`s not paying on time".

    After writing a two page journal, and addressing this issue, things started floating much better and how they were supposed to from the beginning.
     
    Thankfully Nuevolution, the only "customer" I have to worry about paying is myself (for the most part). But as a rule, I too keep an accurate daily account of business activities, outcomes and adjustments (if something has gone awry). I routinely type this out on a plain text editor, print it out on 3-hole punch and place in a binder with monthly tabs. This way, if Uncle Sam ever needs to know what I`m up to; no problem. 

    ---
    Chas T.
    "You can always better your best."

    CT on Twitter

    • 60 posts
    February 20, 2009 3:07 AM EST
      
     
    Chuck, this is a great system! The more you explain it, the better it sounds.
     
    David Jackson

     
    Thanks, David. The `Corporate Book` procedure I`ve implemented is on the advice of my accountant. The simplicity of it really keeps me on track. I started doing the journal only after incorporating recently, but I realize it`s something I probably should have been doing long before.

    ---
    Chas T.
    "You can always better your best."

    CT on Twitter

    • 60 posts
    February 21, 2009 11:43 AM EST
    David,
     
    Your last post inspired me to do a search for "best business plan articles" and this led me to this page at businessplans.org. They invite MBAs from the best business schools to present their business plans to panels of investors. The panel then picks the cream of the crop. I found this to be quite interesting.
     
    Personally, when I was ready to write a business plan last month, I used MS Word. In the program I clicked "Templates on Microsoft.com" and searched "business plan". I chose the appropriate template, downloaded it and started writing. 
     
    Here`s the resource: http://office.microsoft.com/en-us/templates/results.aspx?qu=business+plan&av=TPL000. There`s an excellent business plan template for start-ups developed by SCORE (Service Corps of Retired Executives) right at the top. Plus there`s plenty more to choose from.

    ---
    Chas T.
    "You can always better your best."

    CT on Twitter

    • 16 posts
    February 12, 2009 12:50 PM EST
    Hey fellas,
     
    How about water balloons at 20 paces??? Sometimes I think we need better plans on how to interact with each other.
     
    The truth is as anyone who is succesfull in business would know... is that barose is closest to the truth. Yes you need a business plan, but your first plan will go buns up as soon as you really start to learn about your market, challenges, mistakes in what you "thought" you knew. So your business plan is going to constantly evolve. It`s not something you do once and call it done. I know companies that revisit their plans on a quarterly basis. What with all the mistakes I`ve made I could probaly push that to once a week ;-)
     
    So David nice convo starter(but buck up man its` just opinions, everybodies got a couple).... Edgar way to debate (but let`s turn it down a notch)... barose hang in there man! And let`s not confuse a business plan with a marketing plan. Maybe that could be another 10 point list???  not that I`m trying to get you two started again.
     
    all the best,

    ---
    Dave Barnes
    Spider Climbing, Inc.
    (734) 994-0646
    www.spiderclimbing.com

    2009 Elevator Pitch Contestant Please vote for us!

    • 16 posts
    February 12, 2009 2:51 PM EST
    No problem David, didn`t mean to talk down to anyone. I was just enjoying the string and then came a meltdown.
     
    Besides I don`t think I was talking down....I think I was trying to talk you two guys down. there`s a difference. Do I have ta get the water balloons out again???

    ---
    Dave Barnes
    Spider Climbing, Inc.
    (734) 994-0646
    www.spiderclimbing.com

    2009 Elevator Pitch Contestant Please vote for us!

    • 16 posts
    February 13, 2009 4:41 PM EST
    <<<busy running my business   my niceness just sort of limps along.
     
    Yes Edgar there`s no difference between Dave and David. We belong to the same club and "we have jackets". So not to confuse you anymore, I`ll be Mr. Barnes and he`ll be Mr.Jackson and you`ll still be Edgar OK?
     
    Now that we`ve killed the topic of business plans... let`s move to another of the hot points.
     
    #2. They`re incompetent
     
    I don`t know how long you guys have run your own businesses, I`ve been self-employed all my life and I just turned 53. And I don`t mind saying I know I was incompetent. And if the truth be known, everybody is, "first time" around. However, that being said, They don`t fail because they start out incompetent. They fail because they stay that way...
     
    Let the games begin!!!  

    ---
    Dave Barnes
    Spider Climbing, Inc.
    (734) 994-0646
    www.spiderclimbing.com

    2009 Elevator Pitch Contestant Please vote for us!

    • 16 posts
    February 13, 2009 4:46 PM EST
    Edgar,
     
    Just a note about your website... your "Get your SSL certificate" button isn`t working. Here`s the page link: http://www.nuevolution.net/ssl-certificates-how_they_work.php
     
     

    ---
    Dave Barnes
    Spider Climbing, Inc.
    (734) 994-0646
    www.spiderclimbing.com

    2009 Elevator Pitch Contestant Please vote for us!

    • 16 posts
    February 14, 2009 4:11 AM EST
    Good morning David,
     
    I can appreciate your enthusiasim for your business and history. Maybe you`re just one of those special guys that have it all goin` on. But I still stand by my statement. And after reading your last comment, I think you agree too. People fail not because they started out incompetent, but because they stayed that way.
     
    Take a look back my friend...There isn`t anything you didn`t learn, change about yourself, or discover after you started your business?? Sure it sounds like you did the best you could to prepare yourself, but was that process perfect?
     
    Me? Heck ya!.... I hated numbers, they gave me headaches. But I had to learn about proper accounting and bookeeping proceedures. I liked working with my hands, and found that there were a lots of things that would have been better delegated for a better use of my time. I had to struggle with my own ego (on a few levels) and realize that others might have a good idea too (once in a while )
     
    So maybe #2 should be that people fail because they refused to learn from their mistakes, grow as individuals, or look to others to help.
     
    Game on big guy! 
     

    ---
    Dave Barnes
    Spider Climbing, Inc.
    (734) 994-0646
    www.spiderclimbing.com

    2009 Elevator Pitch Contestant Please vote for us!

    • 857 posts
    February 10, 2009 5:12 AM EST

    There are a variety of reasons why most businesses fail. Following are the ten most common reasons:

    1. They don`t have a business plan. They build a website without having any sort of business plan. That`s putting the cart before the horse. Develop a business plan first, then build a website.

    2.  They`re incompetent. You`d be surprised at how many businesses there are out there being run by principals who don`t have a clue about running a business. Don`t embarrass yourself. Educate yourself, before starting a business.

    3. They`re undercapitalized. Unless you`re an experienced sales and marketing person with the ability to improvise and create, it`s very difficult to start a business without any money. Granted, with the advent of the Internet you don`t need as much money to get started as you once did. But you still need money.

    4. Poor website design. First impressions are everything, and the first impression that is presented by many businesses is a poorly designed website. Internet browsers are an impatient lot. Instead of hanging around trying to figure things out, they simply click-away and move on to the next site.

    5. Poor presentation of product or service. You`ve probably heard the saying, "Presentation is everything." Truer words have never been spoken. How well you present your product or service will ultimately determine its success or failure.

    6. They don`t advertise. You can have the greatest product in the world, but if no one knows about it, you won`t make any sales.

    7. They don`t ask for the order. As unbelievable as it may sound. I`ve actually seen ads where the company presented its case for buying their product, and never once asked for the sale. If you`re a household name like Pepsi or McDonalds, you can get away with that. Otherwise, follow the excellent example of John Scherer, CEO of Video Professor. At the end of every commercial he says, "Try my product!"

    8. They`re in it strictly for the money. Businesses that exist to serve their customers approach business entirely different than businesses that exist to serve themselves. Don`t kid yourself. Customers can sense the difference, and if you`re the latter, customers will avoid your business like the plague.

    9. They don`t learn from their mistakes. Some businesses continue to make the same mistakes over and over again. Albert Einstein once said, "The definition of insanity is doing the same things over and over again and expecting different results."

    10. They don`t take advantage of trends. Things change rapidly on the Internet. However, many businesses don`t recognize and take advantage of that change. For example, Twitter is red hot right now, and while I personally choose not to Twitter, I recognize the fact that some of my readers do. Therefore, I give them the ability to receive their updates via Twitter when they subscribe to receive my blog updates. That`s taking advantage of a trend.
     
    Anyone reading this, feel free to add to the list. All contributions are welcome!
     
    David Jackson

     

    DavidJackson4/10/2009 1:37 PM

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    Powerful, Free Marketing Tips to Help Grow Your Business!
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    • 857 posts
    February 11, 2009 7:28 AM EST
    Great list David.

    I`d also add to this "They Don`t Have the Right Mindset."

    It`s amazing how many people end up sabotaging their chances for success simply due to the mental "gunk" they`ve got going on inside.

     
     
     
    Good point, Christine. I agree with you about having the right mindset. Thanks for your contribution!
     
    David Jackson
    DavidJackson2/11/2009 1:29 PM

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    • 857 posts
    February 11, 2009 7:31 AM EST
    I think it`s a great article, too, and would add "lack of follow-up." It`s more than customer service, it`s day-to-day correspondence, answering questions, helping people complete an order...that sort of thing.
     
     
     
    Thanks, Craig! Unfortunately, something had to be left on the cutting room floor. But I agree with you about the importance of follow-up.
     
    David Jackson
    DavidJackson4/10/2009 1:41 PM

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    • 857 posts
    February 12, 2009 1:11 AM EST
    LOL! Yah, 10-steps and all that. :-D 
     
     
    Exactly. I could have easily done 20 reasons, but I liked the way 10 sounded. Besides, I can always do a sequel.
     
    David Jackson
    DavidJackson2/12/2009 7:12 AM

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    • 857 posts
    February 12, 2009 1:14 AM EST
    Excellent Points, David. #9 I have seen over and over again and it`s just unbelievable. Doing it the same way 20 million times and expecting different results.
     
     
     
    Thanks, Kathy! Yeah, #9 is my favorite as well.
     
    David Jackson
     
     

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    • 857 posts
    February 12, 2009 7:59 AM EST
    David,
    I agree with you on numbers 2 thru 10, and can challenge you on 1. I think that every business needs a good business plan "We all consider this as the back bone of the company" But, how much of backbone can you have when you are a start up? Having a business plan doesn`t necessarly means that you are going to be successful? The business plan is a simple tool to guide you.

    Secondly, you don`t need a business plan to build a web site,
     
     
     
    Edgar, I appreciate and welcome your challenge, but respectfully disagree with your assertions. First of all, you most certainly do need to have some sort of business plan or plan of action, before you start a business.
     
    No, it needn`t be a super elaborate business plan, unless you are seeking bank financing. But you do need some sort of business plan nonetheless. Why? Because a properly constructed business plan is like a roadmap to your goals. Let me explain.
     
    Imagine being in a strange city without a map or GPS. Sure, you can ask strangers for directions, but you know how that works. If you ask 10 different people, you`ll get 10 different sets of directions, and end up even more confused and lost.
     
    Or you can bypass asking for directions altogether, and wander around aimlessly, like a "chicken with your head cut off." And eventually, you may get to where you want to go. But with a map and a clear plan of action, you`ll get to your destination  a lot faster.
     
    And while it`s true you don`t need a business plan to build a website, if you incorporate the purpose and/or goals of your site into your business plan, you`ll have a much clearer vision of your goals, which will enable you to achieve them that much faster.
     
    David Jackson
    DavidJackson2/12/2009 2:42 PM

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    • 857 posts
    February 12, 2009 8:48 AM EST
    I plan on a weekly basis; create lists, etc.  Traditional business plans  are good to have, but they are not the be all end all.  At least not for me.

     
     
     
    You`re planning what you`re doing. That`s all that matters. It need not be a traditional business plan. Just find something that works for you.
     
    You`ve obviously done that.
     
    David Jackson

    ---
    Powerful, Free Marketing Tips to Help Grow Your Business!
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    • 857 posts
    February 12, 2009 9:12 AM EST
    David,
    Im going to use your own example. If are telling me that because you have a business plan you`re not going to get lost along the way? correct me if I`m wrong ... and I do apologize .....
     
     
     
    Edgar,  I never said that if you have a business plan you won`t get lost along the way. I said having a business plan will give you a clearer vision of your goals and enable you to get to your destination that much faster. Generally speaking, that`s absolutely true and I stand by that statement.
     
    David Jackson
    DavidJackson4/10/2009 1:47 PM

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    • 857 posts
    February 12, 2009 10:34 AM EST
    Edgar, let`s just agree to disagree.
     
    David Jackson
    DavidJackson4/10/2009 1:48 PM

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    Powerful, Free Marketing Tips to Help Grow Your Business!
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