One: Reasons For Business Failure

Failure, seems like a strong word, doesn't it? What causes it? How did it happen? Where did it come from? Can it be turned around for good? Can it be used to build a stronger foundation? Many of us face this dilemma, many of us overcome it as well, yet there are those who seem to be in a constant cycle of continual struggle with this "thing" we call failure.

I am a minister of the Gospel of Christ, the Good News of the Word of God! I am a musician, I am one who sings the worship and praise of God the Father, Jesus His Son, and of the Holy Spirit! I preach His Word, I teach His Word. I live as an example of Jesus wherever I go! I have some business sense about me. I try to conduct business the best I know how. I have also seen where "bad" decisions effected the entire ministry. But I have also seen where "good" decisions effected even for the better.

So, if I were to make a listing of the reasons for failure, what would I list? Even though the following is for "business" pay close attention to what is listed, it will affect your life, your business, and your walk with Christ! I will add comments along the way as well.

From Entrepreneur Magazine: Top Reasons for Business FailureHere they are, in order of their importance:

Lack of direction.

Business owners often fail to establish clear goals and create plans to achieve those goals, especially before starting out, when they fail to develop a complete business plan before launching their company.

***In our spiritual walk, when we lack direction, we lead a life of "free for all" living that bears no fruit. We have no sense of where we are going with our life. Usually the "real" plan of direction, the Bible, is laid to the wayside and given no attention. The result is many who always say, when asked, "I don't know what I am to do with my life! I don't know where I am called, or to what I am called!" The Word gives direction, we must listen and heed it!

Impatience.

This occurs when business owners try to accomplish too much too soon, or expect to get results far faster than is truly possible. A good rule to remember is that everything costs twice as much and takes three times as long as expected.

***In this area of life, how do you fair? Are you impatient with God? Are you impatient with where you are in life? Most lead what I like to call a "Mcdonalds Way of Life." Let me explain. We like our "fast food" we want it now, and as quick as possible. When we go through the drive through, many time we have consumed the whole meal, in some ways, before we leave the parking lot, with a result of indigestion! We then, lead an impatient life! Get it and consume it as fast as possible. It is best known as a "I want it now!" mentality. When it comes to growth spiritually, we do not want to allow God His time in building or re-building who we are, we want Him to "get with it and be done!" Impatience builds a bad foundation! Remember this!
Greed. When entrepreneurs try to charge too much to make a lot of money in a short period of time, failure isn't far behind.

***This is a monster in ministry! The many times, with new members in the band, we would hear over and over, "So, how much of MY stuff can we do?" Which I always thought was kind of interesting by the way. Reason being, this was a "new" member, he was to become part of the "unit" first, then maybe we might explore what he has later. Many bands, are completely destroyed by this one monster. Kind of goes hand in hand with impatience by the way, "I want it all, and I want it now!" Bad mentality!

Taking action without thinking it through first.

An entrepreneur acts impetuously and makes costly mistakes that eventually cause the business to fail.

***My father would always tell us, "Whether you win or loose, thats why you always suit uop for every game. But you must always gop in the game prepared knwoing what actions to take when they come." He would say, "You have a head on your shoulders, use it!" The old saying, "If it sounds to good to be true, then it most likely isnt!" comes to clear understanding here. Many times in ministry, we have "flown by the seat of our pants." Really not the best of ways to conduct business, or life! Many times we must stop and sort out before we jump and go! I totally believe that we are to be people of prayer, and in so doing, listen to God. But to get a mentality that will use that to manipulate a situation is bad living. Example: because we are people of prayer, a situation comes up, instead of honest prayer and seeking God, we throw it on His shoulders by saying, "Why prayer, I already know the answer." Not good always. Results can be disasterous without prayer, but a true worshiper of God, a true seeker of His will, will know the difference as well.

Notice closely the next few reasons, see where they may fit in your life....

Poor cost control.

An entrepreneur spends too much, especially in the early stages, and spends all their startup capital money before achieving profitability.

***Maybe the one area where many of us remain in financial bondage. "Needs versus Wants." I recall when at Little Portion, John Michael Talbot gave a most insightful teaching on this area of life. Very simple overall, but very forgotten by many, myself included. "Needs" are those things we use all the time, it is what we need to get by, survive, make things work and function correctly. "Wants" get used, but only a short while and then wind up on a shelf collecting dust. "Compulsive Buying" another monster in our lives. If it has a price tag, we jump on it! Then we come up short, because we didn't simply walk away.

Poor product quality.

This makes it difficult to sell and difficult to get repeat business. Insufficient working capital. An entrepreneur expects--and requires--immediate, positive cash flow that doesn't occur, leading to the failure of the business.

***Can we call this and area where we do not see fruit in our lives? Maybe that area where we didnt allow God His way and will in building character in our lives. Maybe a cycle that is a continual "repeat" with our walk.

The next few speak for themselves....

Bad or nonexistent budgeting.

An entrepreneur fails to develop written budgets for operations that include all possible expenses.

Inadequate financial records.

An entrepreneur fails to set up a bookkeeping or accounting system from the beginning.

Loss of momentum in the sales department.

This leads to a decline in cash flow and the eventual collapse of the enterprise.

Failure to anticipate market trends.

An entrepreneur doesn't recognize changes in demand, customer preferences or the economic situation.

Lack of managerial ability or experience.

An entrepreneur doesn't know or understand the important skills it takes to run a business.

***These last five reasons, it cause me to think of Joseph, with the Pharoah, the things they dealt with. Wonder in that, how should we manage our lives, and our circumstances?

Indecisiveness.

An entrepreneur is unable to make key decisions in the face of difficulties, or decisions are delayed or improperly made because of concern for the opinions or feelings of other people.

***Here is an area that as a minister, I have seen and heard over and over from many who seem to struggle in many areas of life. When you hear the ehart of the person, and listen closely, this is usually what comes up from their dilemma, many indecisive steps were made. Let me repeat that statement that my father taught us a kids, "You have a head on your shoulders, use it!"

Bad human relations.

Personal problems and conflict with staff, suppliers, creditors and customers can easily lead to business failure.

***How do you get along with others? Do you have areas of stuggle in this department? Disunity is a killer of relationships.

Diffusion of effort.

An entrepreneur tries to do too many things, thus failing to set priorities and focus on high-value tasks.

***Here is a killer in failure. Overload on the plate. Loss of priorities and focus. Many lives have been found on the wayside of life, in the streets of dispair and delusion, simply because of too much, and no focus. When an obvious failure in situations has resulted in too many things, then the simple fix, is loose a few things. Thinking we are bigger than we truly are, is not a good way to live this walk. Its like an old saying, "My eyes were bigger than my stomach." We go to the buffett and over eat, and walk off not feeling good about what we had for dinner, rather feeling over stuffed and uncomfortable.

Now, understand, that this probably isnt the best way to start a study on this matter, to just jump in and overdose you with some facts. But, stick around, and you will see how you can experience the best that God has to offer, by using the teaching ahead of you, it will transform you!!!