How Not to Fail in Business

It is a fact that 8 out of 10 of the small business start-ups fail within 5 years. Why do you suppose this is true? It could be bad luck, or bad planning, or the poor economy, or lack of finances or the weather, or any number of reasons that we could name. Let’s examine this for a few minutes to see how this applies to our cattle and grass operations. Resources For any business venture to be successful there are things that are required namely LAND, LABOR AND CAPITAL. There must be a place to operate, someone to do the work and the money to finance the operation. If all of these components are in place then we can assume that there is a better than average chance that the operation will be successful. If this assumption is correct then we can also assume that the reason for failure is the lack of another component that we have until now overlooked or not mentioned. That component is KNOWLEDGE, if all of the physical needs are in place and there is a lack of knowledge the failure rate will be in that 80% range mentioned earlier. What this means in the simplest terms is that land, labor and capital without knowledge can and will in most cases lead to failure. Knowledge On the other hand if these small business start-ups were franchised the success rate is about 80% for the first 5 years. Why the difference? Again, KNOWLEDGE, the folks in the parent company have written a business plan based on past experience and have developed a plan that will take most of the mistak

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