Why Do Most Start Up Businesses Fail

Question Posed on the Quora Web Site

1. All business is based on selling something to a customer

2. A start up business revolves around “sales - production - installation” or to put it another way “sales (closing the deal) - giving the customer what was paid for - and getting paid”

3. Each of these phases need to be planned by both creating infrastructure and researching what the phases will cost the business before being paid.

4. Part of this mix is doing research on what the competition is charging so you know a base line for what to charge and what your profit margin will be.

5. You also need to know what out of pocket cash will be required to put together the infrastructure. (Part of this cash may be personal living expenses although I suggest doing the “start up’ part time while you keep your day job)

6. The above is very basic (and very simplistic) but must be thought out thoroughly before the business opens

7. In my experience most start up fail due to lack of foresight. You are not ready to start a business unless you know the questions to ask. Until then, keep researching and if possible, find a mentor (or some would have it - a coach).

8. I am not a fan of “Ready - Fire - Aim”.