Devote Yourself to creating something that gives you purpose . . .

"So many people walk around with a meaningless life. They seem half-asleep, even when they're busy doing things they think are important. This is because they're chasing the wrong things. The way you get meaning into your life is to devote yourself to loving others, devote yourself to your community around you, and devote yourself to creating something that gives you purpose and meaning."

Tuesdays with Morrie, author Mitch Albom

Friday, June 4, 2010

Why Businesses Fail

Business survival rates are bleak . . .
I've seen figures between 80% and 90% of all business start ups fail within the first five years.  Knowing the reason why so businesses fail should help a new business avoid falling into the same trap. 

According to the author, Michael Gerber, when one becomes self-employed they take the "technical" mind-set into business which is the personality that is associated with getting tasks done.  When a "technician-turned-business-owner" runs  a business, the focus of the business is upside down.

There are three personalities that one must balance in order to succeed in business: 
  1. Entrepreneur - the visionary
  2. Manager - the pragmatist
  3. Technician - the doer
As a new business owner, one believes that they are their business; however, according to Michael Gerber it is important to separate yourself from your business.  Your business must be customer-focused, because without a clear picture of your customer and what they expect from your business, no business can succeed.

Rather than paraphrase his book, read "The E-myth Revisited" to see if there might be a clue why your business is not progressing the way you think it should.

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