Over 60% Of Small Businesses Fail Due To A Lack Of Planning And Execution Of A Business Plan.?
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Written by admin on February 24, 2010 – 2:51 am
Over 60% of small businesses fail due to a lack of planning and execution of a business plan. When businesses are so small it is rare to have an HR manager, because of that training and follow-up is non-existent. Who would be accountable and how could management implement a training routine to make it beneficial and cost effective?
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If you’re only really asking about training, then it would depend on the size of the business. If there’s only about 1 – 10 people, then it would usually be the duty of the owner to train new staff, as he or she would be the person with the most interest in ensuring that everyone knows what they are doing. If you go into 10 – 30 or so staff, you’d probably have an operational or production manager who should take care of training.
Most businesses don’t fail because of inadequate training though. As you pointed out, it’s more about lack of planning. I ran my own small businesses for a few years, and I made sure to only hire people that didn’t need any training!
Is your concern that businesses fail because of no proper training programs?
You are asking about small business with big business words. In small business, the owner does it all. The business plan may be as much as a sheet of paper on the wall.
Try to make your own business plan. DTI has a lot of modules and handbooks you can download from the net. Website: http://www.dti.gov.ph. There are also guidelines you can find n the net. As a small business owner, all the work falls on you but don’t be afraid to ask for answers from other entrepreneurs. Training yourself by seeking answers from others, also from information from the net and books, this is cost effective. Government agencies have free seminars from time to time that you can attend. Just ask from the agencies concerned.