BUSINESS OPPORTUNITIES 2

REASONS FOR SUCCESS AND FAILURE IN EARLY-STAGE VENTURES

REASONS FOR BUSINESS FAILURE• FINANCIAL

• COMPETITION, MARKETING AND SELLING

• OPERATIONAL

• LEGAL

• HUMAN

• ENVIRONMENTAL

REASONS FOR BUSINESS FAILURE• FINANCIAL• CASH FLOW SHORTAGE/EXHAUSTION• INABILITY TO OBTAIN FINANCIAL LOAN OR INVESTMENT• BAD DEBT INCURRED BY CUSTOMER• INSUFFICIENT SALES REVENUE• COSTS OF RUNNING THE BUSINESS HIGHER THAN EXPECTED IN RELATION TO

INCOME

REASONS FOR BUSINESS FAILURE• COMPETITION, MARKETING AND SELLING• FAILURE TO SECURE SUFFICIENT CUSTOMERS• SIZE OF MARKET TOO SMALL TO SUSTAIN BUSINESS• ACTION BY COMPETITORS OR LACK OF COMPETITIVE ADVANTAGE• LOSS OF CUSTOMERS• OVER-PRICING OR UNDERPRICING AND LACK OF VIABILITY

REASONS FOR BUSINESS FAILURE• OPERATIONAL• FAILURE TO SATISFY CUSTOMER QUALITY OR DELIVER REQUIREMENTS• HIGH RATES OF COMPLAINTS, REJECTS OR RE-WORK• UNRELIABLE SUPPLIERS, SUBCONTRACTORS OR DISTRIBUTORS• INABILITY TO OBTAIN ESSENTIAL ITEMS OR SERVICES• ESSENTIAL DATA OR INFORMATION LOST OR UNAVAILABLE

REASONS FOR BUSINESS FAILURE• LEGAL• FAILURE TO PROTECT INTELLECTUAL PROPERTY• COSTS OF DEFENDING OR LOSING LEGAL ACTION• COSTS OR DIFFICULTY OF COMPLYING WITH LEGISLATION OR REGULATION

REASONS FOR BUSINESS FAILURE• HUMAN• INSUFFICIENT SKILLS AND EXPERTISE TO MANAGE THE BUSINESS• INABILITY TO FIND OR RETAIN EMPLOYEES WITH NECESSARY SKILLS OR

EXPERIENCE• DISAGREEMENT OR INCOMPATIBILITY BETWEEN PEOPLE IN THE BUSINESS• ILL HEALTH OR DEATH IN THE BUSINESS

REASONS FOR BUSINESS FAILURE• ENVIRONMENTAL• ECONOMIC DOWNTURN OR RECESSION• LOSS OR UNAVAILABILITY OF PREMISES• FIRE, FLOODING, WEATHER DAMAGE OR EFFECT ON SEASONAL BUSINESS

REASONS FOR BUSINESS SUCCESS• ENABLING CHARACTERISTICS• GOOD LEADERSHIP• STRONG CULTURE• CLARITY OF PURPOSE• REAL CUSTOMER PURPOSE• READINESS TO REINVENT

REASONS FOR BUSINESS SUCCESS• OPERATIONAL CHARACTERISTICS• ENGAGING PEOPLE• COURAGE• PERSISTENCE• CREATIVITY• FOCUS ON GROWTH