Without a Business Model, 500,000 Business Fail Yearly in America

Every year in America, more than a half-million businesses fail each year. The ones that do make it have a solid business plan or business model.

Chicago, IL (PRWEB) November 22, 2005 -- Every year in America, more than a half-million businesses fail each year. The ones that do make it have a solid business plan or business model.

Without knowing its business model is solid – the "right" price for products and services, the projected number of customers, the projected sales, what the company’s strengths and weaknesses are – any business will fail, usually sooner than later, according to Steve Kaplan, author of the best-selling self-help business book, Bag the Elephant!

Kaplan points out, “My friend Jenny Austin learned this lesson the hard way. She opened up a coffee house that sold premium and gourmet coffee for the price of regular coffee. The neighborhood already had several other coffee shops, as well as bookstores and restaurants where customers could grab a cup of Joe. Six months later, Jenny was out of business.

“Jenny had fallen into what I call The Hunch Trap. She assumed that people would gravitate to her shop to save a few cents and savor a tastier brew. Yet in reality, people are creatures of habit and often choose their coffee provider for the ambience or convenience, not the objective quality.

“Had Jenny actually taken the time to test her hunch, she might have spared herself a great disappointment. She could have positioned her product differently, changed her product altogether, or even taken a pass on the entire venture.”

Kaplan further explains, “Not to get too philosophical, but the successful part of your time with your business will all radiate back to the time at which you came up with your blueprint for success. What's your company's blueprint for success? If you ask the question, you're more likely to come up with the answer.”

Steve Kaplan, aka The Difference Maker, has developed a proven method for evaluating business blueprints or business models, which he shares in his Rock Solid Toolbox. That and several other insightful and effective helps, such as free weekly newsletters, are available at www.differencemaker.com.

CONTACT:

Michael Drew

850-747-8188

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