During this Episode, Karim explore one of the hot topics in business building: The life duration of business and how to succeed overcoming the first 5 years test and the first 10 years test.
— Transcript —
Hey what’s up everybody, this is Karim Amri. Welcome to Coaching Secrets Podcast
Today we’ll talk about one of the greatest mistakes, many business owners and startup fall into it, whether they are coaches, dentists or mechanics.
As for US, only 20% of new business make it after 5 years of their implementation, and for those who resisted these first 5 years, only 20% resist for 5 more years, making it a percentage of only 4% chance to continue after 10 years.
This is the figure in US, and it’s funny how the same figure doesn’t change since over a century, despite the fact of development, technology, internet and all the good and bad innovations we’re experiencing.
Why?
To answer that question, many answers and many reasons are behind this fact, but one of the most important one is the concept and mindset of the business builder, or business owner. One of the most common process of opening a business, start by an employee with certain skill, who feels that it’s worthless spending all his efforts at his actual job, where his boss is getting the big cake while he’s waiting always for end of the month to get his small cheque. So far things are ok, and being ambitious is an asset.
What usually happen next is the problem, the employee quit his job, and start his business, to become business owner, and planning to do all the things in his business, at least, for a year or so, until the business grow.
With no management background, no entrepreneurial vision, and only a good technical skill, our great technician found him self struggling between doing the technical part, managing his sales, after sales, marketing, website, … and trying to find the best opportunity in the market, but unfortunately he’s not qualified for any of them.
The rest of story, I’m sure you know it, as each of us has for sure a friend, a family member or someone he knows who went through this process, that usually ends up the business owner closing his business, and going back looking for employment, even with less advantages then the one he quit not long time back.
For the proper success of any business, identifying the different hats needed, which are at least the Manager, the Entrepreneur and the Technician, and putting in place the right mechanism and people to cover them, is essential.
It happen that we start a business by ourselves only, but we need to be fully aware of the different functionalities needed and put a plan how to cover them in the future, even if we start by doing them ourselves for a couple of weeks or months.
No one can do it by himself, it needs a team to sustain a business and keep moving it forward.
Thank you all for listening.
Enjoy the rest of your day , keep growing and bye for now.