http://ecommercetimes.com By Theodore F. di Stefano 08/17/07
As an entrepreneur, I can certainly understand the enthusiasm and aggressiveness that are needed elements to starting a new business. However, my experience tells me that this enthusiasm and aggressiveness must be tempered with a large dose of realism. We should always be asking ourselves "what-if" questions. What if our business model takes longer to execute than we planned?
A survey done by the U.S. Commerce Department stated that of every 10 small businesses, seven will survive their first year, three will still be going after three years and only two will remain after five years. These are quite startling numbers and really beg the question: "Why do startups fail?"
The answer is amazingly simple and can be reduced to three main causes: lack of working capital, a poorly conceived business model and a poorly constructed business plan.
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