The main reason why the majority of business owners fail (over 90%) is because most people who start a business have no idea of how to build and run a successful business. They lack the critical skills sets.
Then, why do they start businesses? What makes them think they can succeed? Well, what kills most people from the start is an assumption they all make. And it is a ‘fatal’ assumption.
They all assume that as they know how to ‘do’ the technical aspect of the business, they would therefore know how to run a business that does that technical work (a famous quote by business guru, Michael Gerber).
In other words, they assume that just because they know how to cook well, it means they can run a successful restaurant. They assume that just because they can teach well, it means they can run a successful learning centre. They assume that just because they are great at cutting hair, they can run a successful hair salon.
Nothing could be further from the truth. In reality, the chef who out that he knows very little about marketing, branding, managing and training staff.
And he probably knows even less about operations, cash flow management, accounting etc… From being great at his job as a cook, he becomes totally incompetent and lost as an entrepreneur.
What’s worse is that this Chef will probably spend most of his time in the kitchen doing the operational work of preparing food, cooking, tasting etc… (because that is what he knows how to do).
As a result, he will not spend essential time on all the other important facets of the business — like marketing, finance, brand development, customer service and management.
What I just described is the typical scenario that happens to most people who were once employees specializing in a particular technical skill (i.e. cooking, hairdressing, accounting etc..). They go on to start a business, only to discover that they lack the skills necessary to run the business.
To summarize, there are six entrepreneurial skills sets you must have in addition to the technical skills to build a successful and enduring business.
These are the skills of:
1) creativity and innovation,
2) organizational development,
3) management & people development,
4) sales and marketing,
5) money management and
6) operations and systems development.