Miami, compared to many other areas of the United States, poses a unique challenge for small businesses to grow in. With a small business failure rate within the range of 85%-98%, Miami can be a very frightening city for entrepreneurs to build their businesses in. Glen Wakeman, CEO of LaunchPad Holdings, explains why many businesses fail in Miami and how businesses can avoid creating unstable beginnings.
There are a variety of myths that were created in order to explain why many small businesses fail in Miami. In order to create a better understanding among our readers it is important to initially dispel these common myths.
Many believe that small businesses fail due to a lack of money. Though it is important for a business to have adequate revenue to support its operations, many failed businesses were doomed from the start. Poor business plans are often to blame for the solvency of many small businesses.
Though this relates to undercapitalization and the need for sufficient revenue, the idea behind financial mismanagement is that the business is spending money when money does not need to be spent.
Prime Reason for Failure
Now that the myths have been dispelled, it should be noted that many small businesses do not fail as a result of their financials, but rather their sales. Many small businesses often operate under the belief that customers will come to them therefore they do not focus their efforts on sales. It is important for potential customers to know that the business exists in order for them to purchase from the business.
Three Step Plan
Glen Wakeman’s three step plan first focuses on a small business exemplifying the benefits of their products and services.
A business owner will then want to research evidence that disproves what they believe. Though it is counter-intuitive, this step will support beliefs that are correct and eliminate beliefs that are not based on facts.
Lastly, a small business owner should surround themselves with people who offer criticism to their ideas, people who will not agree with every idea.