Growing a Successful Business

Successful businesses after 15 years

It is often said that only about 50% of newly created businesses survive beyond the first 5 years. In fact, data from the US Bureau of Labor Statistics (BLS) shows that 55% of new businesses survive beyond 5 years. 

What is less well known is that more than 50% of those successful businesses still fail to reach 15 years. 

These statistics are based on 2021 data but they have been fairly consistent since the 1990s. 

 

Reasons for failure

According to Investopedia's article “Top 6 Reasons New Businesses Fail”, the potential causes for businesses to fail are multiple and include: -

  • Lack of understanding of potential new markets
  • Unrealistic business plans, both in terms of income and expenditure
  • Lack of finances to support the planned growth
  • Inadequate physical location, internet presence and marketing
  • Lack of flexibility to adapt to changes
  • Too rapid expansion.

 

Need for change to grow much further

Growing a successful business beyond the first few years brings new challenges.  As it enters new markets and grows further, the business changes and becomes increasingly complex.  

There comes a point where the CEO and the initial team can no longer manage the company singlehandedly. 

A new approach is required to deal with the new challenges.  

 

Perceived obstacles

CEOs are very busy running their company and often struggle to find enough time to work “on” their business, stand back, analyse and deal with issues to grow much further. 

They have managed to steer their company successfully through challenging times and may be reluctant to let go and delegate to people new to the business.

In addition, they generally do not have anyone without vested interests to bounce ideas with, discuss options and come up with solutions to deal with the new challenges. 

 

Need for help

I believe that to grow their business faster and more effectively, CEOs can greatly benefit from the help of an independent third party who has had to deal with and understands their challenges and enables them to refine, clarify and prioritise issues, identify options, select the best solution and implement actions. 

This does not mean telling CEOs what to do or coming up with ready-made universal recipes but instead it is about enabling them to come up with the solutions best suited to the specific issues and challenges of their business. 

This is how I help successful businesses to grow further.  If you would like to explore how I could help you, please send a message to herve@jardon.co.uk and I will come back to you. 

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