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.