Why most businesses fail!

longkenn

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Most business start ups fail within 5 years. There are several reasons.
1. Lack of capital - Many start ups can not handle the stress of lack of funding. They have the funds to start but not continue operations.
2. Lack of planning - Many start ups do not have a business plan. They start a business on nothing more than an idea and they have nothing to guide them toward growth. If you don't have it written down, it is nothing more than a grand idea. A business plan will evolve, grow and become more complex as you grow. I often use the analogy of a picture of a city you plan on walking to and that city is 4,000 miles away. It is going to look a lot different once you get there and you may have to adjust your route several times, but you wouldn't take on that task without doing some serious planning or you would fail. It is the same in business.
3. Lack of education - Many go into business without the education they need to succeed in their chosen field. There are two ways to get the education. One way is to go to classes and then get practical hands on training. The other way is the school of hard knocks. This can be a very expensive school!
4. Lack of understanding - When starting a business one is making a commitment. Often business start ups succumb to family pressures. For instance, the number of hours required are usually much more than what is required when you work for someone else. Spouses that need more attention to make the family situation work don't lend themselves to the equation necessary for a business start up to succeed.
5. Lack of drive - If you are not driven to succeed and, indeed, to excel, then eventually the stress of the business will cause one to throw in the towel. Business owners who succeed drive their businesses and don't allow the business to drive them.
 

rob allen

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I'd like to add a few and simplify a couple;

1) We are not our customers.
2) Life will not be easier than a job, much more difficult
3) You will not save time as a business owner, you will lose it
4) You must live under your means
5) You better have a ton of intestinal fortitude.
 

longkenn

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I'd like to add a few and simplify a couple;

1) We are not our customers.
2) Life will not be easier than a job, much more difficult
3) You will not save time as a business owner, you will lose it
4) You must live under your means
5) You better have a ton of intestinal fortitude.
Man, it didn't take long for the Cliff's Notes version to appear! LOL :ROFLMAO:
 

MikeGaure

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i think #1 is very very important

there are people who are willing to spend money we wouldnt dream of spending

I'd like to add a few and simplify a couple;

1) We are not our customers.
2) Life will not be easier than a job, much more difficult
3) You will not save time as a business owner, you will lose it
4) You must live under your means
5) You better have a ton of intestinal fortitude.
 

Mama Fen

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A common misconception everywhere is "sales cures all".

It's only partially true.

If you cost of doing business is higher than your selling price, your sales are killing your business.

You've got to command a price that makes your sales profitable. Most of the guys I see fail are in the "budget cleaning" category, but they're so desperate to make sales that they can't bring themselves to fire cheap customers. It's sad.
 
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Common janitor

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" Only morons start a business on a loan ".
Mark Cuban
This is for the "new guy " and the average person . Not the "established " .
2. DON'T BUY "STUFF ". The latest and greatest , pre spray , tool , machine etc. etc. etc.
3. EXPECT THE UNEXPECTED . Do you have the CASH OR CREDIT to fix that machine or the van when the two thousand dollar garage bill is laid in front of you ??
4. You make money " going IN " not when you're " getting OUT " . Read #2 above .
5. Try as much as possible to keep things " simple " . This applies to EVERYTHING about your business .
6. Expenses . Fixed and variable . Make them as LOW as possible . JMHO .
All the Best, Ed
 

rob allen

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" Only morons start a business on a loan ".
Mark Cuban
This is for the "new guy " and the average person . Not the "established " .
2. DON'T BUY "STUFF ". The latest and greatest , pre spray , tool , machine etc. etc. etc.
3. EXPECT THE UNEXPECTED . Do you have the CASH OR CREDIT to fix that machine or the van when the two thousand dollar garage bill is laid in front of you ??
4. You make money " going IN " not when you're " getting OUT " . Read #2 above .
5. Try as much as possible to keep things " simple " . This applies to EVERYTHING about your business .
6. Expenses . Fixed and variable . Make them as LOW as possible . JMHO .
All the Best, Ed
Like it all except for latest and greatest prespray. We got that one covered next week. :)
 

mrotto

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Heres one you wont find but so true.

Most small business are started by people who know a lot about what they do but nothing about running a business (business management)
 

Rick Imby

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Number #whatever. Sales
Jose is absolutely right on....
I disagree with lack of capital, I disagree with official business plan,

1. Learn to clean carpets

2. Go get Jobs, Go get Jobs.

3. Do Great work.

4. Go get Jobs,

5. Do great work

Repeat..

If you are not resourceful enough to buy a used porty off craigslist, and a 175rpm buffer with a brush or red floor pad then don't start.

If you do not have jobs filling up your day and you are not out going door to door to get more jobs you are not giving it your all.

I know a guy that hired a cute young gal to go to every business in town and ask if she could give a free estimate on cleaning the carpets. He just did the work. She was laid off after 3 months as he had more work than he wanted. They got a lot of referals from employees for residential work also. He could have done the selling himself but he had the money and did not want to do it.
 
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BonnetPro

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The five I live by:

Trust in the Lord
Work hard and very honestly
strive to exceed expectations
offer the best choices to solver the customers pains/needs
Seek out wise counsel for faster learning and fewer mistakes.

And maybe a 6th you better love what you do as money is a cruel master.
 

OneBlueSummer

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The actual only reason a business fails is lack of sales.
Some of the most scucessfull carpet cleaners I know have no idea about carpet cleaning..........
 
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Kipp

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If you can sell you can make money

How long you sustain making money and to what level of success depends how you do it

There’s a right way and a wrong way to sell
 
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Luky

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If you can sell you can make money

How long you sustain making money and to what level of success depends how you do it

There’s a right way and a wrong way to sell
Nice that you mention sustainability. You can be master of sales and your customers still love you because they see value in your added products, then there is one time" I put up with you and never have you in my house again.
I'll listen to your reasoning about the differences and actual perception of your type of consumer. When operating in corporate world , right person in right spot can make a whole difference, but there are those pesky quarterly allowances for each and every location based on their performance level. One can bring gold, the others won't reach their full potential( don't have it together). So , while you aiming for a carpet, tile, upholstery and hardwood combo with a canopy cleaning and pressure washing, sometimes you have to settle only for one, two tasks at hand.In case that you disagree, Im willing to listen....and learn.
 

Luky

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Most business start ups fail within 5 years. There are several reasons.
1. Lack of capital - Many start ups can not handle the stress of lack of funding. They have the funds to start but not continue operations.
2. Lack of planning - Many start ups do not have a business plan. They start a business on nothing more than an idea and they have nothing to guide them toward growth. If you don't have it written down, it is nothing more than a grand idea. A business plan will evolve, grow and become more complex as you grow. I often use the analogy of a picture of a city you plan on walking to and that city is 4,000 miles away. It is going to look a lot different once you get there and you may have to adjust your route several times, but you wouldn't take on that task without doing some serious planning or you would fail. It is the same in business.
3. Lack of education - Many go into business without the education they need to succeed in their chosen field. There are two ways to get the education. One way is to go to classes and then get practical hands on training. The other way is the school of hard knocks. This can be a very expensive school!
4. Lack of understanding - When starting a business one is making a commitment. Often business start ups succumb to family pressures. For instance, the number of hours required are usually much more than what is required when you work for someone else. Spouses that need more attention to make the family situation work don't lend themselves to the equation necessary for a business start up to succeed.
5. Lack of drive - If you are not driven to succeed and, indeed, to excel, then eventually the stress of the business will cause one to throw in the towel. Business owners who succeed drive their businesses and don't allow the business to drive them.
Are you referring to business in general or with application to a carpet cleaning industry?
In old times you needed cojones to make it, nowadays cojones and brain are not enough, strategies, diversity and being able to efficiently work social media is recipe for success....
 
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