Why do Businesses Fail in the 21st Century?


The Beginning

Thus, this is the first of a ten-part series. The writer had written his dissertation (the writer has a Doctorate of Business Administration in Entrepreneurship and Business Management from California InterContinental University) in this area; why do so many small businesses fail? Although scholars and researchers have developed several reasons why entrepreneurs fail, one of the reasons is that entrepreneurs have not developed a business plan. A business plan is a written document that looks into the future of an entrepreneur’s business venture and projects through research on various outcomes, what the entrepreneur should look for, and how to handle said subject matter when the phenomenon happens.

According to Haag (2013), 600,000 businesses are started each year in the United States, and only 200,000 will make it to year five; why is that? Why are two-thirds or 400,000 small businesses failing within five years? Haag argued that they failed due to the entrepreneurs’ lack of a written business plan. Now think of this phenomenon this way, if this number was, reduced that is more jobs in the various communities, taxes collected by the government, and more revenue distributed in the diverse communities around the United States.

Researchers have found several reasons why entrepreneurs fail; however, we will look at only three, (1) marketing, (2) lack of capital, and (3) no business plan. As a Small Business Consultant, my Agency can help in these areas. Let’s talk about marketing, undercapitalization, financing the enterprise, and the why of a business plan. The two main ways entrepreneurs raise capital for their businesses are (1) equity, (2) debt.

Equity is the money the entrepreneur invests in their company; this can come through borrowing from friends and neighbors for an interest in the enterprise. So one must ask if the entrepreneur has not planned to invest or does not invest in their dream, why should others? Thus, a continuous process never stops or ends; it is perpetual and continues until the enterprise’s dissolution.

Moreover, this can come from other external investors such as Venture capitalists, Angel Investors, and the likes. However, small businesses still depend on debt financing to grow their businesses, and since the 2008 financial crisis, banks and other monetary institutions have lessened their loans to small businesses. So entrepreneurs have learned to put more equity into their enterprises in place of debt. Nevertheless, if organizations are going to grow, then an infusion of capital is needed for that transition, such as expansions, buying out a business partner, or needed inventory.

Agency

Our Agency has developed partnerships with business organizations that have been in business for many years and has loaned billions of dollars to small businesses, and your firm can be following if you need capital for growth and any other business reason. Marketing is such an essential part of business, for without it, who will know what it is you do? And if no one knows what you do, how can you ever get profitable? Now we have the business plan; without it, it is next to impossible to obtain money (other than friends and family) from outside sources; their first question will always be, “Do You Have a Business Plan”?

Thus, The Agency, through years of experience, and Dr. Mitchell’s academic study in the area of Business Administration, with a particular focus on Entrepreneurship and Business Management, where he received his Doctorate from California InterContinental University in this field of study. Dr. Mitchell has an M.B.A. and B.B.A. in Marketing from American InterContinental University, where he graduated with honors. Dr. Mitchell is also certified in Digital Marketing.

The Agency has access to over 3,600 startup partners that specialize in various area of capital accumulation for entrepreneurs and in vertical markets such as restaurants and hospitality industries, or other special industry financings such as venture capitalist and others that has the capital and the will to finance entrepreneurs or startups if they qualify-and have a business plan. Then there are the training and development programs that can show would-be- entrepreneurs the “how too of doing business,” such as how to sell, marketing, service, operations, content management systems (CMS), AND FREE CRM Systems. All six systems have modules that one can view and manuscripts to read to step one through the various functions of business operations.

The Agency has a non-circumvention agreement that discourages entrepreneurs, customers, clients, or others who associate with the Agency from going around the Agency to do business with the principles that the Agency has developed over the years. There is a one-time fee of $95.00 for The Agency’s non-circumvention agreement and the release of other information that one can use to get started, with a FREE CRM System that manages one’s contacts. The Agency’s concept is to reduce the failure rate of entrepreneurs starting in business, one business at a time.

Covid-19

Consequently, Since the covid-19 interjection into our society, there have been many changes to how business is done. Social distancing, wearing masks, and constantly washing hands is our new present routine. The shaking of hands and face-to-face meetings have lessened. The advent of teleconferencing and virtual seminars has led the physical presence of managers to meet with their teams today virtually.

The transformation from traditional to that of digital transformation is at hand, and those who learn this new business strategy will prosper in the world’s new business acumen. Hence, this recent business phenomenon is cheaper, quicker, and can be done by any entrepreneur with the study of how to. Digitalization is not new by any means, but it took a pandemic to force the movement from traditional ways of doing business to the 21st century way; digitally.

Every business on the planet has moved to, or will change to or should move to, this process that was brought about by the inception of the internet. If not, their business, be it for-profit or non-profit, will slowly cease to exist. Look at the newspaper industry; they learned as others that digitalization was the wave of the future, and newspapers are dinosaurs in a digital world.

Enclosed is my calendar and schedule your free consultation. in this matter to see if we can be of service with a solution to your business issue.

Book Time On My Calendar Here

Email: donaldemitchell1@msn.com

Website: www.donaldemitchell.com 

I am interested in the readership commenting on this blog. And response will follow.

About the author:

Dr. Donald E. Mitchell work as a Small Business Consultant specializing in management software, digital transformation, digital marketing, e-commerce, website development, and alternative financing.  My primary focus is on small business growth and solutions for growth through sales and digital marketing.

Methodology
The author’s beliefs are personal and reflect his worldview, experience, and academic study and acumen, and research in the issues and practices mentioned in entrepreneurship and business management.`

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