New businesses fail at an alarming rate. It is no surprise to most that new businesses fail at an alarming rate. According to Bloomberg, 8 out of 10 entrepreneurs who start businesses fail within the first 18 months; 80% of new businesses simply crash and burn. Inc. magazine suggests that 96% of businesses fail within 10 Years and the only reason is lack of cash. That means a new business that collects little or no money is destined to disappear. Collecting little or no money in a new business suggests that the expenses are higher than income; one does not need special training, or expertise to figure out that no business can survive when expenses are higher than income.
Experts suggest reasons for business failures; they are telling us what we should look for, and what to avoid, for minimizing expenses and maximizing income; they suggest what some of the reasons for failure are:
- Bad location
- No Business systems
- No operating manuals / processes
- Employees poorly trained
- No marketing ability
- Poorly prepared food / food with no appeal / taste
- Death, retirement, divorce
- Not really in touch with customers
- Too many similar businesses in close proximity
- Food not of highest quality and poor service
- Dining room and auxiliary spaces lack cleanness
- Not enough working capital
At times, a new place opens and many people visit the place; some because are curious and some because the new place satisfies their needs. We notice that the place is full of customers and some of us are ready to declare this new place a winner. Yet, as the days and weeks go by, we notice less and less customers and after a few weeks the place is almost empty. Because the owner has enough working capital the place remains open and yet its customer numbers tend to decrease. Eventually, the place closes down. What happened? In most cases, the personnel were not trained properly and the clients when visited the place noticed a great deal of confusion from taking an order, for preparing the food, for delivering the food on the table and even confusion at the time client wished to pay for his / her food. And unfortunately, this lack of preparation and training of employees turns clients off and away.
Should you wish to share news about your business with others, we are encouraging you to do so; please do not hesitate to call or e-mail: Peter J Poulopoulos, MBA Managing Real Estate Broker Licensed in Illinois, Indiana, Wisconsin REALPOUL REALTY “Commerce with Morality™” 2731 W Touhy Ave Chicago, IL 60645 Phone: 773 743-2100 E-mail: email@example.com visit us at: www.realpoul.com