People who set up their own business tend to be well-motivated and usually have talent or expertise in their field, yet the failure rate is drastically high.
A study in 2006 found that in the UK, only 40% of businesses survive to their 5th year and only 40% of those survive to their 10th year.
This translates to a survival rate of only 1 in 6. Even fewer can be described as successful, i.e. achieving their potential.
To succeed at running your own business is clearly a difficult task.
When you bear in mind a couple of other facts:
- 99% of all British businesses are classified as small.
- 50% of all jobs in the UK are within businesses classified as small
It’s likely that almost all of us are affected by this shocking waste of time, money and talent.
Surveys of successful businesses have found that a common factor in their success is Business Planning.
Unfortunately, small businesses are faced with an awkward choice:
- Try to plan themselves without the expertise, which is time consuming so it usually gets neglected
- Engage a Business Consultant, which is usually too expensive
The result is that most small businesses do very little business planning, which must contribute to the high failure rate.
But now there's a middle way - an effective and affordable solution.