Why Most Businesses Fail

crack-graphic-1236437On the side, when I am not working my day job or going to school, I am trying to build my own business on the side. Business is a world where you can learn so much from anyone and anything if you pay attention. All you have to do is watch your surroundings carefully. For example, in my city I am always seeing new restaurants open up and then a couple of years later they either close down or get replace by someone else. A couple of miles from my house, there is this new mexican restaurant and every time I drive by it, I appears to be always empty.]

I am thinking to myself, how long will it be before they get shut down. More questions like what made them open up another mexican restaurant in this side of town. I have always wondered if maybe the city or demographics did not really need an another restaurant. This does not just apply to food restaurants but also the mom and pops shops around too. I heard that a lot of limousine companies in my area are closing down like flies.

Which brings me to the same question, what makes you think that wee need another limo temecula company here anyways. There is probably nine other luxury transportation companies that I can call right now, If I wanted to go out with my friends. The other day, my friends and I rented out a 12 passenger stretch Cadillac limousine when we went out to Los Angeles for this club promotion.

chess-4-1315663The driver told me that the reason why he started his own limo company was because he thought it would be cool to drive his own limo and after being in this business for five years, it was not really a good reason to jump into this business in the first place. He mention there is too much competition plus other big companies like Uber who is disrupting the way things are done in the transportation industry. Some of his limo friends closed down and sold all of his limos to him and he felt like he is one of the few survivors left. So what I have learned is:

Market Research

You need to see if there is really a need for another high end transportation company in your city or town.

Competition

It is very important to research who you will be competing against. You will have to find out all the mistakes they made, so that you can ensure that you don not make the same mistakes as well. This can save you a lot of time and money.

Reasons

Last, the most important is your reason why. You have to find out what is the real reason why you are doing what you are doing. It has to be a good reason, a reason that will make you wake up in the morning. It has to excite you whenever you think about and wakes you up everyday because you cannot wait to work on your business.

All of these are a good starting point to ensuring your business will not fail down the road. I have seen it and every business owner has seen it as well, so I would like to make sure that the word gets out so we can put an end to this long string of business failures. So that at the end we can have a successful business that will allow us to provide for our families and loved ones.