Referencing a 2014 Intuit study, the US Small Business Administration just noted that more than 40% of U.S. small businesses consider themselves financially illiterate, yet 81% handle their business. https://www.sba.gov/blogs/april-national-financial-capability-month; http://investors.intuit.com/press-releases/press-release-details/2014/QuickBooks-Survey-More-Than-40-Percent-of-Small-Business-Owners-Identify-as-Financially-Illiterate/default.aspx
Actually those percentages vastly understate the rampant problems nationwide for business knowledge deficiencies. Consider some “real world” facts:
Statistics succinctly 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) http://isbdc.org/small-business-failure-rates-causes/; http://www.washingtonpost.com/blogs/fact-checker/wp/2014/01/27/do-9-out-of-10-new-businesses-fail-as-rand-paul-claims/; http://articles.bplans.com/the-real-data-on-small-business-failures/.Even after 5 years in operation a significant number of those survivors will also fail. A study done by Inc. magazine and the National Business Incubator
Association (NBIA) revealed that 80 percent of new businesses fail within the first five years. 80% of new businesses fail within their first year. According to Dun & Bradstreet reports, “Businesses with fewer than 20 employees have only a 37% chance of surviving four years (of business) and only a 9% chance of surviving 10 years.” http://www.moyak.com/papers/small-business-statistics.html
The primary causes for those failures/discontinuances – knowledge deficiencies in best business practices (as well their proper applications) and financial acumen/timely access to the right capital at the right time. The simple fact is that acquiring more business development (new contracts, expanded sales, etc.) or even having some sort of funding does not and can not solve the fundamental knowledge deficiencies for requisite best business practices and financial acumen (also accessing the right capital or financing tool at the right time).
The “real world” prescription that most vetrepreneurs/ business owners /management routinely fail to recognize and understand –
It’s what you don’t know that is going to come back and bite your rear end.
If you don’t know where you are going, you’ll end up someplace else. Yogi Berra
For every vetrepreneur and veteran business owner, the proverbial critical quandaries will be ever present – What costs for not having the requisite knowledge and practical insight regarding how to better steer and navigate through every financial and developmental stage for the business enterprise, including the necessary business development, collaborations support?
Borrowing from the old Fram Oil Filter Commercial –
You can pay me now or pay me later, but rest assured, payment will be forthcoming!
How to solve these dilemmas? The first step for every veteran business owner/entrepreneur is to candidly and honestly recognize the problems.
The next step is to in fact do something about – mouthing the words is not a realistic substitute for focused, dedicated action to seek out resources for better educating and acquiring the needed knowledge.
For every military veteran and family members there is an immediate educational resource readily downloadable – in fact an indispensable, vital asset in starting that knowledge empowerment journey to achieve lasting and long term business successes.
Operation Veteran Empowerment is the only veteran created and operated educational, informational Internet platform resource in the country dedicated to “real world” best business practices and business financing access/acumen. http://www.opvetempower.com http://www.operationveteranempowerment.com (all educational arrays are FREE for veterans and family members with $5 small fee for the download required to ensure Veterans Are Helping Veterans).
Regardless of enterprise size (revenues or employees, maturity, or area of business), this “real world” business/financial guide comprehensively details how to avoid inevitable pitfalls at every stage. E.g., (Certain Fundamental Requisites Without Which Success Will be Extremely Problematic – http://www.ultimatefinancingguide.com/real-world-facts-for-every-start-up-or-early-stage-enterprise/; see also http://www.ultimatefinancingguide.com/lets-talk-about-the-nature-of-money-and-business-financing/
Today knowledge has power. It controls access to opportunity and advancement.
OpVet also provides an unprecedented coalition of “Resources, Tools, Providers for Real World Enterprise Successes” See, http://www.ultimatefinancingguide.com/our-partners/. Virtually all text chapters within this unique treatise were pre vetted and reviewed by an array of well recognized experts – listing of experts see: Expert Advisors: http://www.ultimatefinancingguide.com/expert-advisors/ For authoritative, further expert treatise/book reviews, see http://www.ultimatefinancingguide.com/expert-book-reviews/. For the OpVet veteran founder profile, please see http://www.ultimatefinancingguide.com/about-the-author/, also at LinkedIn www.linkedin.com/pub/woodrow-wollesen/11/147/652/en
Just as importantly this is in every sense “Veterans Helping Veterans to Succeed”.
The more and better knowledge empowered and more that veterans work/cooperate together the more successful the enterprise, the more veteran jobs will be created, the more financially secure veteran families become, and all of which enhance our national economy. That is truly veterans working together – all being “win-win-win” scenarios.