What do successful businesses do?
They use a small number of key performance indicators (KPIs) to monitor their performance against these drivers, and they use this information to ensure they have:
winning products or services that people want to buy and will continue to want to buy
a cost-effective route to market
clear objectives simply set out and communicated to all staff to motivate them
a dedication to continual innovation and improvement
effective management information and financial control
efficient services and distribution
good, dedicated management with the right information carefully controlling business responsibilities
compliance with regulations with minimum disruption to routine
"Success is the gradual realization of a worthy goal"
What are the root causes of business failure?
Lack of business knowledge
Lack of capital (because of 1,2,3,4 above)
Lack of planning (because of 1,2,3,4 above)
Not increasing or improving their offering (because of 1,2,3,4 above)
Not increasing their customer base (because of 1,2,3,4 above)
No customer care (because of 1,2,3,4 above)
Growing the business unwisely (because of 1,2,3,4 above)
There are many more, but it always leads back to the first 4 points.
The bottom line is most businesses fail because the owners and managers do not have the skills to manage the business.