Why Businesses [really] Fail: What to Do

In working with chambers of commerce and business associations I’ve met many business owners who strongly believe that access to business capital is their number one barrier to growing their companies – and to some extent, and now as an entrepreneur, I can relate. The number two and three reasons usually stated are raising costs of health insurance and taxes. Most times these are also the same factors blamed for a failed business.

However, I believe those factors are more symptoms than the root cause, and the infographic alludes to that idea. The real problem? Intellectual capital (or the lack there of). This is the brainpower provided by a person or persons who know your industry better than you do; they know the who, the what and the when of things, and they sometimes have access to key figures to plug-in to. They see your business from a different perspective and could even provide you with an advantage over your competitors.

As you look at the infographic below, think of your business and the pains that afflict you, and then think of who specifically would best solve that problem, their skill set, is it a consultant, and MBA, a SCORE mentor perhaps? Think of that person and don’t limit yourself by money, or as Harish R. Rao says: “pay enough so that money isn’t an issue, then give high recognition, autonomy, and the opportunity to learn and grow,” and watch your team excel. The right person, after all, could be the catalyst for growth in your business and thus worth the investment.

Folks, we as entrepreneurs need to stop trying to do it all ourselves and instead need to hire, outsource, or create partnerships – in other words; delegate to the right people!

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