Experience is Key for New Business Opening
A survey reveals that over 500,000 small businesses open every year and an average of 400,000 of them close. Why do these kinds of things happen every year? Some business consultants point out the major reason is due to the lack of experience and preparation of the new business owners.
According to the Korean Federation of Small and Medium Business (Kbiz), most business consultants mention that the primary reason businesses fail within a year is due to poor preparation (29.5%). Kbiz conducted this survey with 197 business consultants yesterday. 24.4% identified the second factor as the lack of having a business mind as a business owner. This was followed by failure of selecting lucrative business items (12.7%), and improper business location (11.2%).
In conjunction with the business owner’s qualification, that plays a negative role in successful business, 40.3% pointed out unprofessional business and irrational business operation, the lack of customer services (25.2%), laziness (16.1%), and a lack of patience (10.5%).
Regarding proper preparation, 61.4% of the consultants stated that it is important to have enough time, at least 5 or 6 months, to open a new business, accumulating their direct working experience as a worker in the field in which they want to open. 38.9% advised them to do it.
According to Kbiz, there are approximately 2,680,000 small businesses currently operating in Korea. The following seven items are mostly seen from failing business owners: hurry, excessive business, no pursuit of trends, distorted business philosophy, empty business roadmap, ignorance of experience and aptitude, and belief of rumors.
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 / 입력시간: 2006. 09.14. 08:48
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