Most small businesses fail. Thereasons are the owners lack of business skills, business experience and business planning. Learn what to do to avoid failure

1. Learn from Why Businesses Fail

3. “ To turn really interesting ideas and fledgling technologies into a company that can continue to innovate for years, it requires a lot of disciplines .” Steve Jobs - CEO of Apple Computers and Pixar Media

5. U.S. Small Business Administration Statistics on Business Failures Old: 50% of businesses fail in first year 95% of businesses fail in five years New: 33% of businesses fail in two years 52% of businesses fail in four years

6. National Small Business Association 2007 Survey of Small & Mid-Sized Businesses Concerns: Economic Uncertainty 42% Cost of Health Benefits 39% Lack of Available Capital 31% Lack of Qualified Workers 23%

7. If you were to “ G o o g l e ” the phrase, “Why businesses fail”, you would get…. Pages and pages of lists. The Top 10 Reasons, the Top 7 Reasons, the Top 25 Reasons, etc. Lists full of cash flow problems, people problems, operations problems, debt problems, etc. But…..They’re really all just Symptoms of the problems

9. “ You can't know it all . No matter how smart you are, no matter how comprehensive your education, no matter how wide ranging your experience, there is simply no way to acquire all the wisdom you need to make your business thrive .” Donald Trump - Real Estate mogul and star of The Apprentice In other words….. You can’t know everything!

10. Most Business Owners used to have a job and a set of skills to do that job. They, at some point, decided that they wanted to “be their own Boss” and be self-employed. So, they built a business based on their old job . Over time, they learn that there’s a BIG difference between being “Self Employed” and actually RUNNING A BUSINESS!

11. In Michael Gerber’s book, “The E Myth Revisited”, he states that everyone who owns a business is actually three people in one

12. Technician Manager Entrepreneur Do the Business Manage the Business Drive the Business 90% 3% 7%

13. Technician Manager Entrepreneur Do the Business Manage the Business Drive the Business To be Successful, they must be balanced

14. “ I wanted to be an editor or a journalist, I wasn't really interested in being an entrepreneur, but I soon found I had to become an entrepreneur in order to keep my magazine going .” Richard Branson - British entrepreneur and Founder of Virgin Music.

17. A small manufacturer of widgets that sells to boutique retail stores, finally makes a sale to Wal Mart. Suddenly, Orders go up by a factor of 20. Inventory goes up by a factor of 30. Accounts receivable go from 30 days to 120 days. Cash Flow dries up & Suppliers want payment. Why didn’t they anticipate this major upswing in operations and drain on cash flow? Must Experience be so painful? Most Business Owners lack Business Experience

19. Most Business Owners lack Business Planning A small arts and crafts retailer has a relatively successful store. She wants to expand and open another store or two. However, She can’t make any headway, because she always putting out fires. The bank won’t lend her any more money. She can’t explain where the business is going to her employees, suppliers or customers. She thinks she has a plan, but it’s in her head. How does she know where she’s going? You can’t see your future, and every decision is made in a vacuum.

22. D o I t Y ourself works for….. Gardening Home Repair Home Decorating Car Maintenance

23. D o I t Y ourself Doesn’t Work…. Running a Business

24. So, Go Get Some Help!

25. Business Advice and Support – Most FREE Virginia Tech Corporate Research Center Vinton Area Chamber of Commerce

29. Technician Manager Entrepreneur Get the help to reach LONG TERM SUCCESS & AVOID FAILURE

30. “ You can't know it all . No matter how smart you are, no matter how comprehensive your education, no matter how wide ranging your experience, there is simply no way to acquire all the wisdom you need to make your business thrive .” Donald Trump - Real Estate mogul and star of The Apprentice

31. Questions?