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No-one ever said that starting a new business was easy, but recent research shows just how difficult it is to get a foothold in the market.
Worryingly, 80% of all new companies don’t make it past their second anniversary. With only around 20% of businesses going to the wall in the very first year of operation it appears to be that difficult second year that causes so many problems.
In fact, this high rate of failure has been consistently highlighted over the years, with a very similar failure rate seen in both boom times and periods of economic stagnation. The good news is that those businesses that get through the first two years see their chances of long term survival increase greatly.
Craig Ridley is the Founder of YourBusinessCoachingClub and he pointed out that “offering something new and different is vital in getting a new business off the ground successfully.” The fact that the marketplace is so competitive in most areas means that any weak plans will soon be exposed.
Mr Ridley also confirmed that “many entrepreneurs fail to take into account how much money a new venture can eat up before it begins to pays its own bills and eventually turns over a profit.” This is given as one of the reasons why it is so important to get a solid business plan in place and save money for a steady start.
In this way, it is possible for a new company to start life in the right way without fearing that a bad week or a bad month could be the end of the whole project. This is crucial because it means that the business owner will most likely be more confident and have a higher level of belief in what they are doing.
The global business advice network at YourBusinessCoachingClub is a pioneering online coaching club for entrepreneurs. It is built around the founder’s 30 years of experience in the business world and aims to help small business owners to learn the skills needed to deal with both modern challenges and classic business problems. With direct coaching sessions and a large worldwide community, YourBusinessCoachingClub gives entrepreneurs help in many different situations.
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