Let's face it, there are a million potential reasons why any one particular business is not able to become (or remain) profitable.
But there is one very predictable and obvious breakdown that happens quite often to new business owners that becomes the death of their enterprise.
The unfortunate truth, though, is that this problem need not happen. It can be averted with a little forethought and effort on the part of the owner.
One of the major recurring reasons why so many new businesses fail is that the owner has no clue how to get his product or service in front of his best customers.
You see, many business owners are very passionate folks that know their industry or product upside down. They are technical experts and can give you any detail or spec that you want. They know the field, its players, and the winning strategies.
But often these same technically sophisticated entrepreneurs know little or absolutely nothing about marketing a small business.
Their education didn't include anything closely related to sales, industry research, testing and tracking, copywriting, and the like.
Many don't know a P&L statement from a balance sheet. Some come online with no experience in creating a web site, installing or running software, and responding to customer inquiries and questions.
It boils down to this: entrepreneurs have great ideas but often lack the business operational skills to run a company.
What to do? Does the business owner head back to college to get a degree in business management before opening his company up to the public?
Here's a better approach. Business owners need to understand their own inadequacies and get the help needed in those areas.
Here's a ridiculous example: What do you do when you know you have a broken tooth? Do you get out the super glue and a mirror and attempt to fix the problem on your own? Do you rely on your own knowledge of physical anatomy to operate on the tooth and replace it with a substitute that you crafted on your own in your spare time using the tools in your garage?
Hopefully not. You go to the professionals in the field of business practice that are trained and experienced in helping other businesses just like yours. If you need accounting assistance, you go to a qualified CPA. If you need legal advice you call an attorney.
There is also another option. Sometimes, you can find excellent help and advice in another business person that has already successfully dealt with a problem similar to yours. These are mentors that share their knowledge and experience (for a fee or otherwise) for your benefit.
Sometimes a small business will be run by a seasoned management team that is brought together specifically for it's business operating capability and skill. The CEO and others may not know much about the technical aspects of the product (like the entrepreneur), but that can be learned or delegated to the technicians. What the managers bring to the table are the skills to operate and grow the business successfully.
Yes, running a business is possible without any previous experience. Depending upon the type of business you operate, you can learn as you go if you're observant, pay attention to detail, and are willing to experiment with and modify things as you move forward.
But beware, many businesses fail because the owner failed to somehow make up for his own inadequacies or failed to learn what was important to the operation of his business model.
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