Why do 84% of bussinesses fail within their first year of operation?
408134
They didn't anticipate how much money they needed to get the business started, and the amount of money they'd need on reserve to live until the business started making a profit.
16530
If it is an ongoing business, be sure customer base is spread out, in other words, one customer doesn't account for more than 20% of the total business. Check out the 20/80 part of your business, 80% of the businesss comes from 20% of your customer base. Do you have a non-compete clause in buying contract?\n    Will current owner help get you up and running? Are you an employee now, if yes, will customers come with you when the change is made? Current employees, do they know, and if so, are the ok with change, business is hard enough, without having internal problems right out of the gate!
449947
because when you get older and work in a business if the quality is not good you get fired eventually
1128549
Not all the people are placed. It is better to have some experience in the field to get a first assignment. A traineeship with a senior is also a good solution.\n\nSAP business is going well. Especially for people with at least 2 years experience.
611825
If you have to ask this question, you have no business making your own marketing plan. I apologize if this sounds harsh, but there's a good reason why the majority of food services fail. Most owners go into business thinking good products and service will make them successful when it's just not true. Effective management systems and marketing make a business successful, not products and service. Products and service must meet the expectations of a customer once they get in the door, but they will not be the reason for a customer's buying decision. People buy to fulfill emotions. Successful marketing campaigns are based on promising customers a certain feeling when they come into a business, then developing a unique selling point that helps deliver that feeling to the customer. This unique selling point and the feeling is then incorporated into every aspect of the businesses marketing. In a food service, that could include the food selection, menu design, store interior/exterior design, signage, advertising, letterhead and any other item that represents the business. Successful businesses do not sell products, they sell feelings.\n\nSome examples:\nMcDonalds does not sell hamburgers. McDonalds sells convenience to adults and fun to children.\nHard Rock Cafe does not sell food. They sell nostalgia.\nHooters does not sell wings. They sell sex.\nBurger King does not sell burgers. They sell accomodation (Have it your way).\nTavern on the Green does not sell gourmet food. They sell stature.\nSubway does not sell sandwiches. They sell health.\n\nThe SBA is a good resource, but even with the best "samples" in the world, an inexperienced marketer cannot develop a solid marketing plan. Even most marketing companies don't have a clue about solid marketing plans. They specialize in negotiating good prices on advertising, then reselling the advertising to clients for a profit.\n\n\nBrandon O'Dell\nO'Dell Consulting\nRestaurants/Retail/Bars\n(316) 361-0675\nbodell1@cox.net\nhttp://www.bodellconsulting.com\n\nFree initial consultations
773116
Total stagnation of the company or organisation.  Probably the worst examples of this are the National Health and Local Government.  The main features are a proliferation of managers  and assistant managers and various sub divisions! All trying to justify their existence by issuing more and more paper work!  Very shortly you get more managers than workers and these poor souls spend most of their time filling in forms!  Eventually the whole lot implodes.  Then nobody has a job.  It was a feature of all communist countries and that led to corruption and that led to economic collapse.  The EU is a prime example.
1025246
If businesses were democratic, more than likely they would fail.
108517
false many things could be causeing the returns to the firm. fewwer sales, or incressed cost to stay in business could be the cause.
255912
I'd go into a business that has low starting capital and a steady revenue in it's first year. I could guarantee not going backrupcy so fast and make a few extra bucks for myself.
1142604
Risk-taking. All successful entrepreneurs are risk takers. It's very hard to set up a business especially when you know most small businesses fail in their first year. It's not just about business, but life. Those who take calculated (reasonable risks) risks will be rewarded    more often than penalized.
1045824
Sometimes it takes a couple years before your bussiness takes off, but once people know your name and product and quality you offer they become repeat customers (clientele).One rule i stand by is give your customers more than they expect, Make them feel like they are very important and you should do well.
46502
The answer will vary by industry and/or product line.  In most industries it is assumed that sales to existing customers come much easier and with much less expense than to new customers.  But in some industries where repeat business is rare, this consideration doesn't even occur.\n\nAnalyzing this would be next to impossible to accomplish at a national or even regional level.  Rather it would be more likely an industry association will survey a small segment of its membership and then apply the results to the entire industry.  Which industries would even do this?  I don't know.
751952
The 97% failure rate (or 9 out of 10 closure of businesses) is actually a myth -- no one can attribute the source for this data.\n\nIn this SBA study entitled "Redefining Business Success: Distinguishing Between Success and Failure" http://www.sba.gov/advo/stats/bh_sbe03.pdf , the US Bureau of Census' Business Information Tracking Service (BITS) finds that :\n\n66 % of new firms survive two years or more\n50 % survive 4 years or more\n40 % survive 6 years or more\n\nAnother study by Philipps and Kirchhoff finds that three-quarters of all businesses survive 2 years or more; about half survive 4 years or more; and 40 percent survive 6 years or more\n\nThe study did not specifically look at home businesses, but finds that starting as a home business can be a positive factor that can explain the likelihood of survival of businesses.  The most likely reason for business survival include:\n\n- starting a business with capital greater than $50,000\n- having a college degree\n- starting a business for personal reasons\n\nWhile being a home-based business signals lower capital, home business owners have the advantage of lower startup and operating costs, hence increasing chances of survival. Plus the home-based business owner is likely to enjoy the lifestyle of working from home, thus increasing the persistence level.
533317
I have a very close friend that works there. If you don't succeed in the business they get rid of you very quickly. It's a cut throat company and if you are not bringing in money you're gone. They need to recruit and hire people very often because they have what you can call "a revolving door". People come in, fail, and leave. You must be a strong and dedicated sales/people person to succeed in that company.
1028748
My guess is that the owners are not re-examining basic business plan assumptions.  Time to get creative, obviously something about the basic financial model of a chinese restaurant at this location isn't working.... so the cash flow isn't sufficient to sustain the operation.   Anyone taking over the location needs to check out the neighborhood, traffic patterns, demographics and develop a very specific financial plan that matches the facts.  A lot of people go in "with a hope and a prayer", and that's not a smart way to start a business.
1032945
Companies don't do themselves damage by retrenching. They become more profitable. You increase the size of the team during boom times to get more business, then cut down when the economy droops to maximise the new client base.\n\nSome studies suggest that making it easier for companies to hire and fire creates more jobs in the long term. Countries that make it difficult for companies to retrendh have very slow job growth rates.
87771
Sales. High failure rate, though.