Why do some business fail while some succeed

Business Planning Newsletter Thursday 6 August 2009
In this week’s issue: Why do some businesses succeed and some fail under exactly the same circumstances? Because many people who go into businesses are not entrepreneurs.
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The man who stopped three feet from gold
I recently went to Banket, the town where I grew up and did my primary education years ago. It is easy to notice who owns which business in a small town. One thing that became clear in my mind was that of the business owners who were prominent ten years ago, almost no one is still in business, or at least in the same business.
Statistics show that the failure rate of new businesses is quite high: nearly 9 out of ten businesses that are started at any given time do not make it past ten years in existence. This is because many people who go into business are not entrepreneurs. Entrepreneurs have a number of traits that ordinary people don’t have. One of them is persistence.
Persistence is a necessary trait because business ownership is not a sprint, it is a marathon. You have to stay in the race for a long time in order to win. Most businesses will only start realizing a profit after several years in operation.
Napoleon Hill tells of an interesting true story in his book “Think and Grow Rich”, published in 1937. He tells of the story of Mr. Darby’s uncle who joined the gold rush after the precious metal had been discovered in Colorado. After staking his claim, the uncle started digging. After weeks of hard labour, with pick and shovel, he was rewarded with a rich seam of gold. He went home, borrowed money for machinery and came back with Darby to mine their gold. The first load of ore confirmed that they had one of richest mines in the country.
Down went the drills! Up went the hopes f Darby and Uncle. Then something happened! The vein of gold disappeared. They had come to the end of the rainbow, and the pot of gold was no longer there. They drilled on, desperately trying to pick up the vein again- but to no veil.
Finally, they decided to QUIT. They sold the machinery to a junk man for a few hundred dollars and took the train back home. Some “junk” men are dumb, but not this one. He called in a mining engineer to look at the mine and do a little calculating. The engineer advised that the project had failed because the owners were not familiar with “fault lines”. His calculation showed that the vein would be found JUST THREE FEET FROM WHERE THE DARBYS HAD STOPPED DRILLING! That is exactly where it was found!
The “Junk” man made millions of dollars from gold from the mine, because he knew enough to seek expert counsel before giving up.
That is the first lesson if you want to succeed in business. Business is risky, you will face many challenges. Do not give up easily. Plan properly. Seek expert advice when facing challenges.

Your comments and feed back are welcome. Please email them to me on chichonip@yahoo.com.
Visit my website: https://chichonip.wordpress.com
We provide solutions to help you start or grow your business.

Phillip Chichoni
Admiral Business Systems (Pvt) Ltd
111 Seke Road, Hatfield Harare
Telephone 04-581230, cell 0912 414 830


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