Be a SME success.
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Less than 45% of UK businesses survive their 5th birthday. The top 5 reasons for business failure are: 1) Not being in touch with customers through dialogue. 2) Lacking real differentiation in the market. 3) Failing to clearly communicate their value proposition. 4) Breakdowns in leadership. 5) Inability to establish a profitable business model. To succeed, businesses must tackle being in touch with customers, differentiation, communication of value, strong leadership, and having a profitable model.
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Be a SME success.
- 1. Be a SME success, not a statistic Start up phase Brick wall Reinvent or die phase (reoccurring) Time Proactive change Die Growth Another brick wall: they keep on coming! 2. Be a success by tackling these 5 areas: Less than 45% of UK businesses survive their 5th birthday (‘Success In Challenging Ties - Key Lessons for UK SMES’, University of Surrey 2012). If we are to learn lessons from over ‘The Pond’ according to Eric Wagner, writing for Forbes.com the top 5 reasons for business failure are: #1 The business was not really in touch with customers through deep dialogue. #2 The business did not have real differentiation in the market. #3 The business failed to communicate a value proposition in a clear concise and compelling fashion. #4 There was a breakdown in leadership. #5 There was an inability to nail a profitable business model. 1. You are not alone: gain comfort in the fact that the path ahead is difficult for all SMEs. Research into the life journey of SME’s shows that they typically follow a path similar to that shown here. There is a road map for the successful business (and lessons from the less successful ones). © Nick Parker 2014