Business Issues

Business Characteristics

In the UK, nearly half of all small businesses fail in the first year. 80% are gone after five years. Less than 10% of all UK companies survive for more than 50 years.

The average lifespan of all companies is 10 years.

 

Why Do Businesses Fail?

The key reasons why businesses fail are:

  • Lack of direction
  • Inability to deliver
  • Lack of funds
  • Management "doing"’ not "managing"

Characteristics of successful businesses:

  1. Have a clear strategy and vision.
  2. Know when and how to exit their business.
  3. Organise their business around systems, not people.
  4. Know their market position or niche.
  5. Have and efficient “sales machine”.
  6. Plan their finances.
  7. “Manage” rather than “Do”.