CAREERS & MANAGEMENT 6/2019 Business Spotlight 69

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P

op quiz: How many new businesses fail

within their first five years?

A. 20%

B. 40%

C. 50%

While the statistics on failure rates of

new businesses vary slightly, the U.S.

Small Business Administration (SBA), a

United States government agency sup-

porting entrepreneurs and small busi-

nesses, reports that around 30 percent

of new businesses fail during their first two years, 50

percent during their first five years, and 66 percent

during their first ten years. So, if you answered C, you

can give yourself a gold star.

These are hardly encouraging statistics if you are

considering starting your own business. But take

heart: Understanding the reasons why new business-

es fail may help you avoid the same fate.

Most businesses fall into one of three categories:

brick-and-mortar businesses, online businesses, and

service providers. While it depends somewhat on the

kind of business you plan to start, the main reasons

why new business fail are fairly consistent.

1. Poor planning
   New business owners often underestimate the val-
   ue of a solid business plan. Writing a business plan
   gives you the chance to think through what you hope
   to achieve. You set out a roadmap for success, put in
   place concrete and realistic milestones, and outline
   the steps necessary to reach those milestones.
   Whether it’s long or “lean,” a well-written business
   plan includes the same information: an introduction

achieve sth.

[E(tSi:v]

, etw. erreichen

brick-and-mortar business

[)brIk En (mO:rt&r

)bIznEs*]

, traditionelles (nicht

virtuelles) Unternehmen

consistent

[kEn(sIstEnt]

, übereinstimmend

entrepreneur

[)A:ntrEprE(n§:*]

, Unternehmer(in)

lean [li:n]

, schlank;

hier: kurz gefasst

milestone

[(maI&lstoUn*]

, Zwischenziel

take heart

[)teIk hA:rt*]

, Mut fassen

Eine unzureichende Kapitalausstattung, ein fehlendes

Konzept, ein unfähiger Firmengründer – es gibt viele Gründe,

warum neue Unternehmen schon nach kurzer Zeit scheitern.

TENLEY VAN DEN BERG hat sich mit dem Thema befasst.

MEDIUM US

* This symbol marks

standard US pronunciation

throughout this article.