Success rates of small businesses across the world may sometimes feel low for budding entrepreneurs. However, it is more difficult for businesses to establish in the city of Miami, Florida. The failure rate in the city is estimated to be between eighty-five to ninety-five percent. Due to the significant growth of the city’s economy in the recent past, some experts believe the situation could be even worse. Seasoned business professional Glen Wakeman shares his sentiments on how two keep new businesses afloat.
According to Glen Wakeman, certain issues are blamed out of proportion to the lack of small businesses to grow. The first issue has been undercapitalization, the lack of enough capital to sustain businesses growth. Even though some entrepreneurs start businesses without proper funding, some businesses have failed even when there is sufficient funding. Wakeman indicates that such a scenario is caused by lack of an effective business plan rather than finances. Another major misconception about the lack of growth for small businesses is poor fiscal management. In this case, funds are available but are mismanaged. Some business may have flawless fiscal management but still fail to grow.
The underlying problem
In most cases, the lack of growth is more related to sales issues rather than finances. According to Wakeman, most start-up businesses do not focus on sales operation which is a major cause of failure. For instance, some entrepreneurs think that their businesses will attract customers once established. However, it is not always the case because customers need to familiarize with businesses first before making any purchases.
Glen Wakeman has developed a three-part methodology that can help start-up business persevere and lay a strong foundation for growth rather than failure. The first part indicates that when selling a product or service to a potential customer, it is more important to focus on the benefits rather than features. The second part advice entrepreneurs to form opinions based on their business instead of relying on information from elsewhere which can be misleading. The last part advice start-up business owners to form groups which may be supportive in case of hardship.