This is the first article in a three-part series on how to prevent your operation from joining those who are driving the increasing mortality of U.S. small businesses.
One of the pillars of the American Dream is the ability of any citizen to start a business from scratch, build it, own it, and pass it along to their heirs. Research indicates that there are more than 25 million of these dreams come true in the U.S. Approximately eight million have employees, the balance are independent contractors, professionals, etc., and together they create half of the U.S. economy. All of that is the good news.
The bad news is that the rate of small business mortality – when the dream turns into a nightmare – which was once 50% in five years, has now increased by 20% in the past 20 years (U.S. Small Business Administration). The reason for this unfortunate trend is associated with Blasingame’s 1st Law of Small Business: It’s easy to start a small business, but it’s not easy to grow one successfully.
The smoking gun that kills most small businesses is the founder’s ignorance of or disregard for the financial fundamentals of business. And most of this business carnage could be avoided if every Founder understood what I call the Five Financial Mysteries. In this installment, I’ll reveal the first Mystery with the others to follow soon. [Continue Reading]
Over the years, as I’ve talked with many a budding entrepreneur about how to start their business, it continues to amaze me how many haven’t conducted anywhere close to a prudent amount of research or due diligence on their baby. Indeed, they often act as if they must get their business going … right … now … or … they … will … just … POP!
Dave was the fifth of twelve children raised during the Great Depression. His father worked at a sawmill and was a part-time basket weaver.
Growing up on a farm provided many valuable lessons that have transferred beautifully to my life in the non-farming marketplace. Here are four of those timeless and universal lessons.
Whether it’s a year where something we once knew as “normal” was part of our reality, or during an unprecedented and unimaginable year of a global pandemic, the abiding management question for all small business owners is always valid: “What’s the best use of my time right now?” And at no other time of the year are we more time-management challenged than in December.
Now in my fifth decade as a business owner, this Baby Boomer has been reflecting on what’s been learned that would benefit the next generation of entrepreneurs.