small business failure

Thomas Cochrane Accredited by the Institute for Independent Business

TKC Solutions [email protected]

503-635-7741

Small Business Failure

Reading the Warning Signs


Introduction

Tom Cochrane, TKC SolutionsAdvisory Services to Small Business

OwnersInstitute for Independent Business

Non ProfitWorldwide network of over 3000 associates


Small Business Failure

Alarming yet incredibly consistent statistics from the US, the UK, Canada

Failure rates in the 95% range in the first five years

Why?


Why do people start a small business?

Independence They are tired of working for someone else. Challenge Small business ownership requires a great deal of responsibility.

Some people thrive on that. Prestige Small business ownership offers community recognition. First as

a successful business operator, and later as a contributor to the economic and social welfare of the entire community.

No Restrictions There are no restrictions and few prerequisites for small business

ownership.


Why do people start a small business?

In small business a large percentage of new owners are over 50 years-old. Most have been “right-sized” and they have their severance pay or early retirement in hand and are looking for an opportunity that doesn't carry age discrimination with it.

Race is not a factor in small business. Neither is gender. As a matter of fact, women are starting small businesses at 6 times the rate of men.


Failure Points

Start Up

Owner Saturation


Owner Saturation

Hustle is no longer enoughFatigueQuestioning the Dream


Owner Saturation

Marketing / StrategyCustomers of all shapes, sizes and whoever

bought firstNo idea of who they are, what makes them

uniqueNo focus on how to grow, where, with

who(m)


Owner Saturation

Operational Chaos without the ownerNo clue on how to hireNo clue on how to incent people


Owner Saturation

Financial and Operational Controls “Quickbooks Phenomenon”

No instruments, no training for bad conditions


Owner Saturation

Undercapitalized- WHY?


Owner Saturation

Undercapitalized

No idea on what their rationale is for growing- No plan, no market focus, ‘just another (store, dry cleaner, trucker, manufacturer…etc)’

Without that, they wouldn’t loan themselves money, much less ask for it


Start Ups

Dreams , not plansAll the same problems as owner

saturation, just in embryonic formCorporate Background is almost

completely counter productive for entrepreneurs


What We Do

Institute for Independent Business created the “Business Support Program”

Outreach program for ownersNetwork of Experienced (Old)

Associates


Business Support Program

Owners Do not Fail due to Lack of SmartsLack of Hard Work

Help for what they don’t know is hard to find

Advisory Program as opposed to consulting


Cases

Metals IndustryDeclining Market

Trucker Start UpPlan for distinctivenessSchedule and targets for new equipment

Software ConsultancyLandscaper


Thanks For Your Attention

Tom CochraneTKC [email protected]

Referrals are always appreciated….

small business failure

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