Business Failure: the #1 reason that business owners, freelancers and the self-employed struggle at best and fail at worst
Business failure – why do businesses fail?
After owning/managing my own businesses, consulting for several others and mentoring many individuals I’ve finally discovered the one defining factor for failure. And yes – there’s only one factor that causes all failure. If that one factor is taken care of, success becomes imminent. But what am I talking about?
No – it’s not what you’d think it is. Failure doesn’t come because the service/product has an inherent flaw, nor does it come from a lack of cash-flow. Businesses owners don’t fail because they didn’t work hard enough or lacked the skills necessary to effectively manage a business.
No – for the freelancer or self-employed failure doesn’t come from a lack of new work nor does it come from ‘bad luck.’ It doesn’t come from a lack of education or training either. Failure isn’t the end result of an misbehaving website, a bad Twitter campaign or all the bureaucratic paperwork necessary to be self-employed.
And for the record, failure does NOT come from a bad economy or a recession. That might be where the blame is placed but that is not the true reason for any business failure.
All those reasons for failure are actually the effect…so what’s the cause? I’ll come to that soon.
If I had to create a blueprint for my financial success what would it hold?
For years I’ve often questioned why I’ve been financially successful. What did I do (specifically) to become a member of the 1% of the world’s financially successful people? Was it the business books I read? Was it my ability to keep going even when people told me I was crazy? Was it simply being at the right place at the right time?
I’m a ‘normal’ person – nothing special. In fact, you’d be surprised about how normal I am. I’m not particularly intelligent nor do I have special connections. Heck – I’m a foreigner in the country I live in. And I certainly didn’t grow up with a privilege childhood!
The reason I’ve been so curious about my success factor is that I crave to help others. I can’t help offering my knowledge and wisdom to my business owner/freelance friends. I think it’s breathtakingly absurd that something like 75% of small business fail after 3 years. With all the technology, outsourcing resources, combined wisdom and shear information out there, why is failure so common? And how did I avoid it? What is my blueprint for success so that I can pass it on?
Until the last few years I thought my success was due to my marketing systems. I have a real passion for marketing and I enjoy creating educational information that supports a sales and buying process. For example, with a few of my companies I’ve create systems to educate my clients/customers about a whole journey even though my product or service is only a small part of that journey.
With one of my first companies, Smart Currency Exchange Ltd, I started off writing guides on how to buy overseas properties. What does overseas property have to do with currency exchange? Well, at the time 95% of all private currency transactions were completed for overseas property. People that read my guides wouldn’t use my service for years…but by the time they needed currency I was the first (and often only) company they came to.
Because of my marketing systems being so successful, I wrote a book (haven’t published it yet), offer consultancy and meet a business group on a monthly basis trying to express the virtues of educational based marketing. That is – of course – how I became successful.
So what am I saying? The reason for failure is a bad marketing system? Hehehe. No… a few years ago I would have said that, but not now.
Lately I’ve been racking my brain on how I can best help business owners/freelancers. I’ve been asking what is the real reason for business failure? And can it be narrowed down to one fundamental issue?
Business failure factors are the effect – not the cause of the problem!
Failure factors in business (no sales, bad economy, bad employee, lack of skills, etc) are like what symptoms are to a disease. The problem is hidden below the surface and it grows and grows until symptoms appear. The business owner then fights the symptoms rather than taking control of the real issue (much like a doctor giving medicine to alleviate the symptoms rather than cure the problem).
With my success I took care of the real issue, yet I didn’t realise my actions had such a powerful effect. I wrongly assumed that my blueprint for success was tenacity, education, application and creative marketing systems. These things are helpful, but they weren’t the source of my success. Let’s look now at the real cause of failure and how you can solve the real problem rather than fight the symptoms!
When you go back to the source and cause of all failure, it’s an individuals (business owner/freelancer’s) internal state of mind/body (films as mentioned in my book) that create everything. The reason that over 75% of small businesses fail within three years of starting is because 75% of people that run a business eventually believe that statistic to be true – or they buy into the fact that failure is more probably that success.
The reason that many businesses have gone bust during the recession isn’t because there’s a lack of money to be spent. It’s because that particular business owner bought into the belief that the economy is bad therefore their business will suffer. When the recession hit, my business partner and I read a little book on redundancy and I decided, ‘no – I’m not going to buy into this. Recession or not, Smart Currency is successful and it will continue to be successful.’ During the recession and to this day Smart continues to grow exponentially and so do thousands of other companies that focus on growth rather than erosion! You get what you focus on!
It breaks my heart when I ask a business owner, ‘how’s business’ and they reply, ‘this recession is crippling me.’ I just want to yell back to them, ‘it’s your belief that this recession is crippling you that’s the problem!’
Media has a lot to answer for! It creates group thought and influences minds for the worse. If you’re experience business failure, please turn off the news. Stop watching it. Stop subscribing to the belief that the economy is bad. Stop listening to and buying into anything that ‘proves’ business failure is probable.
Monitor, change and consciously create a business blueprint that leads to success
To change the outcome of your current situation – whether it be business,
personal or whatever you need to find a way to change how your mind/body is operating – you need to change your internal blueprint or film.
If you have an internal blueprint for success it doesn’t matter whether
you figure out twitter or not. It doesn’t matter if the economy is in a recession. Nor does it matter if your business idea is ‘bad’ – there are lots of bad products out there, yet people buy them!
The universe conspires to bring you what you believe to be true. If you believe in success you will get success.
To start wrapping this article up, let me explain what I did in addition to being tenacious, going forward when people said I was crazy and creating my marketing systems. On a routine basis I listened to guided meditations and hypnosis tracks focused on success. I consciously forced my mind/body to focus on being, feeling and thinking successful thoughts. I also read books that forced me to expand my imagination – to question myself – to discover what I really enjoyed and what I really wanted. On a daily basis I thought about what the best outcome could be rather than worry about the worst…
I also learned how to listen and watch my mind/body. Rather than let thoughts, visuals, memories, expectations and so forth run automatically through me, I started to pay attention. Once you decide to watch what’s going through your mind/body you’ll be amazed at all the crap that’s in there. That crap is the stuff that is causing failure rather than success.
This isn’t s simplistic exercise of ‘thinking positive,’ so don’t think to yourself, ‘right – I just need to think positive.’ It’s much more than that. It’s training your mind/body how to consciously focus on success. Furthermore, it’s about listening to your mind/body to consciously see where you’re going wrong and what needs to be changed and then systematically changing it.
This is what my book is all about. It’s about how life really works…and how once you understand how it works, you can create a much more fulfilling life and business experience.
Kim Brown helps people to find their life’s purpose and exponentially increase their fulfillment. To get started read Kim’s book, ‘How Life Really Works: The Answer to Finding your Purpose & Personal Fulfillment’