How many of you have been trading between 5 and 10 years?
Well your business is at a high level of risk – let me tell you why
Most business owners think that business failure only happens within the first 2-3 years of trading and if you survive past 3 years and start to become established your survival rate will increase. Statistics produced by the DTI show that over the past ten years on average 9.5% of businesses close in the first year and by year 3 that figure rises considerably to 30.7% of businesses closing.
So do the figures change after three years? Yes
Do businesses that last beyond 3 years increase their chances of survival? No
The same figures from the DTI show that within 5 years of start up 52.5% of businesses do not survive. By year ten of start up the figures get worse as a massive 68% of businesses end up closing.
New business start up is currently at a record high, with 125,000 new businesses starting in 2005, the highest since records began. If the statistics produced by the DTI continue their trend, by 2015 only 40,000 of those 125,000 will still be in operation.
So what can you do to make sure your business doesn’t become one of these DTI statistics?
Entrepreneur Magazine and Yahoo Business recently did some research into the number one reason why businesses fail. The result was a simple one – Businesses fail at the high rate they do because they fail to plan.
These businesses that fail do so because they only create a business plan at their inception to raise funds and investment, they then fail to incorporate strategies and plans for their marketing, staff development, sales, lead generation, cash flow, business development, and on the list goes.
At Your Business Growth Coach we don’t just show you how to create plans, we work with you to implement them and most importantly develop them to truly grow your business and achieve success. Visit our website and in particular our page on getting results www.yourbusinessgrowthcoach.com/getresults.htm
Now is the time to stop thinking your business is going to be ok because you have been trading for more than 3 years. Now is the time to start planning for business growth and business success.