Small business failure boils down to two primary causes. 1. There is not enough capital to subsidize the first year "ramp up" phase. 2. Overconfidence in management abilities. Just because you like to eat doesn't mean you can manage a restaurant. Having said that, ultra successful businesspeople often have several "failures" under their belt before they make it big. In that example failure was merely a training exercise.
I think "not enough capital" can be broadened to "not enough planning." You wouldn't believe the number of people/businesses who sign leases before ever making projections or even making a budget! If they would make a budget and realize how much money they have to bring in every month to just cut even, I would be thrilled. But think about how many people don't do that with their personal finances, so why do we think they'll do it for a business? The number of businesses who make a product but have no idea how much money goes into each of those items would amaze you... restaurants might be one of the worst offenders.
Some people learn from reading. Some people learn from listening to others. And some only learn by making their own dumb mistakes and getting whacked on the noggin head. And small business owners only learn from a couple of bankruptcies. I feel your pain.
I owned and ran a successful music business for over 15 years. as the music industry changed, my business stopped being profitable. That is not a failure!
Wow, sniff… absolutely. My two “failed attempts” at for-profit businesses with Ponga.com led to this not-for-profit Projectkin.org.
In one year, I’ve probably touched more people than I ever did with 12 years at bat with Ponga. It’s all possible because of what I learned from the community that grew around Ponga. 🥹
Small business failure boils down to two primary causes. 1. There is not enough capital to subsidize the first year "ramp up" phase. 2. Overconfidence in management abilities. Just because you like to eat doesn't mean you can manage a restaurant. Having said that, ultra successful businesspeople often have several "failures" under their belt before they make it big. In that example failure was merely a training exercise.
I think "not enough capital" can be broadened to "not enough planning." You wouldn't believe the number of people/businesses who sign leases before ever making projections or even making a budget! If they would make a budget and realize how much money they have to bring in every month to just cut even, I would be thrilled. But think about how many people don't do that with their personal finances, so why do we think they'll do it for a business? The number of businesses who make a product but have no idea how much money goes into each of those items would amaze you... restaurants might be one of the worst offenders.
Some people learn from reading. Some people learn from listening to others. And some only learn by making their own dumb mistakes and getting whacked on the noggin head. And small business owners only learn from a couple of bankruptcies. I feel your pain.
I owned and ran a successful music business for over 15 years. as the music industry changed, my business stopped being profitable. That is not a failure!
Agreed!!
Wow, sniff… absolutely. My two “failed attempts” at for-profit businesses with Ponga.com led to this not-for-profit Projectkin.org.
In one year, I’ve probably touched more people than I ever did with 12 years at bat with Ponga. It’s all possible because of what I learned from the community that grew around Ponga. 🥹
I love this! All just part of the process... redirection. ♥️ thank you for sharing.