Starting (or buying) a Business is NOT Risky

Good News for those of you contemplating starting (or buying) a business right now! According to a New York Times article, businesses are NOT more likely to fail during a recession. Yippee!

The article says that those started during a recession have just as much chance of survival as ones started in good economic times. Okay so what's the downside? Well, only 48.8 percent of new businesses started are still operating five years later.

And from personal experience, I believe this is accurate. So why don't more businesses survive past the five year mark? Here's what I think (and my opinion is based on numerous analysis of small business owners financial situations) -

Half the businesses started don't last beyond 5 years because:

1) the owner runs out of funds and can't borrow more. The owner may have a great product or niche but the learning curve in starting and running a business was greater than the cash flow generating ability of the business.

2) the owner is tired of "doing-it-all". The is the classic tale of woe told by Michael Gerber in "The E-myth". Most people who start businesses are technicians....not entrepreneurs. So after five years, the owner is simply exhausted from "making the pie, marketing the pie, managing the store, cleaning up the mess" and doing it for little or no income.

3) the owner experienced a personal tragedy - death, divorce, disease - that couldn't be overcome

4) BUT THE BIGGEST REASON is (drum roll......): the owner didn't know how to market his/her business. Marketing was considered a variable expense and done randomly depending upon the sales people that showed up to sell a Yellow Page or newspaper ad. Learning to become a "marketer of your business rather than a do-er" to paraphrase millionaire-maker Dan Kennedy, is the MOST IMPORTANT thing you can do as a business owner. A systematized marketing campaign that puts your business in front of your customers and prospects all the time keeps money coming in the door....in good times and bad.

And what's more, ANYONE can learn to do this. If you'd like more information, contact me directly.

Or click this link right now to get some FREE information that you can use in your business right now: Grow Your Business in Any Economy

Don't wait. If your business fails, it's NOT because of the recession. It's because you didn't know what to do.....so get educated about it today!!

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