Starting a Small Home Business

Entrepreneurship – 9-10 Mortality Rate

April 29th, 2009 Filed under: Uncategorized — Small Home Business Author

When a figure appears in any business undertaking, the facts are let bare.

The equation 9/10 represents how businesses survive generally within its first ten years of operation. The figure 9 represents businesses while the figure 10 represents number of years. Thus as mortality is to men, so it is to all form of businesses. Thus every 9 out of every 10 businesses do fail in its first ten years of operation.

High mortality rate of businesses are frequent due to the fact that some provisions are not adequately provided for thus snuffing out life from such businesses.

This high mortality rate s caused by so many factors which includes-

• Financial predators.

These are people, group of people and organizations who feed parasitically on business ventures. These people are around us in all sphere of daily contacts. Either by mistake or ignorance, they eat up deep into a business finances. Their traps are well laid that one slips into it regularly. These predators are government agencies via taxation, investment brokers, banks and bankers, legal advisers, relations and marriage partners.

• Financial illiteracy.

Many start ups and up coming entrepreneurs do not have enough financial education. Basically they are not aware of the difference between “return of investment” and “returns on investment”, assets and liabilities, depreciation, inflation rate nor do they know how to figure out facts from figures on a sheet of financial document. Also, many are not conversant with the ups and downs in the market place.

• Get rich quick syndrome

Many businesses do experience demise in is early years due to the fact that such new entrants do force their funds to yield abnormal profits. They are lured by mouth watering offers neglected by existing player that are perfected by con men. Their desire to make it fast and quick leads them into attempting sharp deals which ends up swallowing up their available resources. Investing in phony deals drains their capital and in most cases hands them over to law enforcement agencies there by crippling their businesses.

• Unavailability of a compliant mentor and workable business plan.

Many new entrepreneurs engage the mentorship of verbal achievers. These brand of mentors are not conversant with the real demands of such businesses nor are they knowledgeable in the new trends. Many of them are half failures of yesteryears and those living on relations largess but very vocal and well packaged. They do not have things on the ground to show for wealth or enterprising prowess. Secondly, many do jump into businesses without a master plan based on current dynamic research. When these people are faced with great challenges, they cannot find answers to them. The only option left will be to wind up.

As much as the mortality rates are high, the focused and positive minded few can only but join the successful 1%. Preparation prevents poor performance.

Igwenazor Kingsley Chinaemerem.

Head Coach and CEO http://www.Phortizo.com

At phortizo we stand by you from Cradle to Glory in your entrepreneurial dreams. Its all about you, We fine tune your business strategies to stand out as you want it.