Consider a few “real world facts”:
Statistics clearly reveal that for every alleged brilliant new idea, impassioned start up, or early stage business venture (at least up to five years) that anywhere from 36% to 50% will fail depending upon industry area (e.g., pick your poison)
Only about half of all new establishments survive five years or more – only one-third survive 10 years or more. (US SBA Off. Of Advocacy; also, http://www.sbecouncil.org/about-us/facts-and-data).
Are there remedies and means to prevent? Absolutely, all very significantly
increasing the chances for long term success.
The rather straight forward primary reasons for those business failures lie within related and connected areas:
- Wholesale knowledge deficiencies by entrepreneurs and business owners respecting best business practices;
- Access to timely funding;
- The financial acumen on how to acquire and manage throughout the life cycle of the enterprise.
Ironically virtually all of the business maladies in play tend to be the self induced /self inflicted varieties. Virtually all tend to be preventable.
The real world prescriptions that most entrepreneurs and early stage business owners fail to recognize or understand –
“It’s what you don’t know that is going to come back and bite your rear end”.
“It’s what you don’t know that you don’t know that creates the real problems”.
How many times and how many ways do startup and early stage enterprises have to experience these costly (in terms of money, time, and resources) detours, pitfalls, and struggles to survive that were virtually all entirely preventable?
All the business development on the planet (e.g., new contracts, clients, revenue expansions regardless of source) is completely worthless without access to the right type financing at the right time and the financial acumen to plan for and manage those resources. Even with timely financing (seed, investors or otherwise) the end result is the same without the requisite knowledge of best business practices. In fact getting financing often breeds arrogance and compliancy completely masking the real underlying business practices, financial acumen problems/deficiencies that will come back to plague.
Operation Veteran Empowerment was specifically created and structured to help every entrepreneur/business owner to avoid those daunting outcomes – the only veteran FREE educational, informational Internet platform dedicated to “real world” best business practices and financing access/acumen in the country.
Of special note and emphasis are the chapters dealing with “equity financing” which should be mandatory primers for every entrepreneur.
Recently relied upon and directly quoted by Vetrepreneur Magazine (March 2015 issue) from OpVet:
Woodrow “Woody” Wollesen, president of Execunet and Operation Veteran Empowerment, wrote the “The Ultimate Financing Guide” to help vetrepreneurs navigate the multitude of options.
“I’ve always told my clients that financing options should be viewed as tools,” Wollesen said. “Knowing when and where that tool might fit becomes the challenge.”
Pros and Cons
Wollesen said angel investors are generally less risk-averse than banks, for instance. In some cases, venture capital investors may offer a solution for funding that may not be available to all vetrepreneurs. There are drawbacks, however. “Whether equity capital is truly the ‘cheapest path’ may be open to some debate,” Wollesen noted. “When you have one or more equity partners, you have ‘crawled into bed,’ so to speak, with others. The advice that one should carefully measure all aspects of one’s available options never had a more profound meaning. Choosing wisely is one heck of a lot more than a casual admonition”
The real message – What have you got to lose? The real answer – as statistics vividly demonstrate “just about everything”! Download and see for yourself.