Why Do Businesses Fail?

Recently through one of my contacts through Linkedin, I received the message below … I included my thoughts and would love to hear feedback. I was on a radio show recently and we were discussing the top 5 ways that lead to businesses failing. I have noticed business failures have nothing to do with existing capital or the market they are in. After extensive research, we believe to have narrowed the reasons for business failures down to 5 items.
For background info to this discussion – here is the show on video
http://www.lukascoaching.com/myb/thrivingbusiness.html
The show can be downloaded as an MP3.
The Top 5 Reasons:
1. The business markets to themselves and not their ideal client
2. The business won’t identify who their ideal client is.
3. The business will not get expert advice or consultation in critical areas.
4. The business does not have a proper marketing cycle their customer can “walk themselves through.”
5. The business/owner lacks the competence and confidence to be successful.
I would love to hear your thoughts as we refine this list together.
Chris
Author of For Free and For Fun – How to Ask for the Appointment and Get It
I strongly agree that 1 & 2 are strong contenders, probably the strongest contenders on this list. Item #3 is a tough one … defining critical areas depends on which area of your business your are referencing, who is delivering the message, and who the recipient is. Additionally, in today’s world, defining a true expert is a challenge. Everyone that has a blog seems to think that they are an expert at something, when truly, we are all experts at delivering our opinions in a compelling manner. #4 – Not sure if I agree with the term “marketing cycle” but as a process analyst who has worked with large numbers of sales reps in various industries in production, sales support, sales management, and as a CRM administrator, I do find that the absence of a sales process is a detriment to any sales organization. #5 – The business owner lacks a list of items – primarily, the ability to separate the business side of things from the emotional side is always a challenge I see with small to medium businesses. If they can do this, they are more likely to realize areas that they need improvement and the areas that they are not best suited to handle.
Would love to hear your feedback and see your votes on this poll:

Recently through one of my contacts through Linkedin, I received the message below … I included my thoughts and would love to hear feedback. I was on a radio show recently and we were discussing the top 5 ways that lead to businesses failing. I have noticed business failures have nothing to do with existing capital or the market they are in. After extensive research, we believe to have narrowed the reasons for business failures down to 5 items.

For background info to this discussion – here is the show on video

http://www.lukascoaching.com/myb/thrivingbusiness.html

The show can be downloaded as an MP3.

The Top 5 Reasons:

1. The business markets to themselves and not their ideal client

2. The business won’t identify who their ideal client is.

3. The business will not get expert advice or consultation in critical areas.

4. The business does not have a proper marketing cycle their customer can “walk themselves through.”

5. The business/owner lacks the competence and confidence to be successful.

I would love to hear your thoughts as we refine this list together.

Chris

Author of For Free and For Fun – How to Ask for the Appointment and Get It

I strongly agree that 1 & 2 are strong contenders, probably the strongest contenders on this list. Item #3 is a tough one … defining critical areas depends on which area of your business your are referencing, who is delivering the message, and who the recipient is. Additionally, in today’s world, defining a true expert is a challenge. Everyone that has a blog seems to think that they are an expert at something, when truly, we are all experts at delivering our opinions in a compelling manner. #4 – Not sure if I agree with the term “marketing cycle” but as a process analyst who has worked with large numbers of sales reps in various industries in production, sales support, sales management, and as a CRM administrator, I do find that the absence of a sales process is a detriment to any sales organization. #5 – The business owner lacks a list of items – primarily, the ability to separate the business side of things from the emotional side is always a challenge I see with small to medium businesses. If they can do this, they are more likely to realize areas that they need improvement and the areas that they are not best suited to handle.