| When a figure appears in any business undertaking, | | | | with the ups and downs in the market place. |
| the facts are let bare. | | | | - Get rich quick syndrome |
| The equation 9/10 represents how businesses | | | | Many businesses do experience demise in is early |
| survive generally within its first ten years of | | | | years due to the fact that such new entrants do |
| operation. The figure 9 represents businesses while | | | | force their funds to yield abnormal profits. They are |
| the figure 10 represents number of years. Thus as | | | | lured by mouth watering offers neglected by existing |
| mortality is to men, so it is to all form of businesses. | | | | player that are perfected by con men. Their desire |
| Thus every 9 out of every 10 businesses do fail in its | | | | to make it fast and quick leads them into attempting |
| first ten years of operation. | | | | sharp deals which ends up swallowing up their |
| High mortality rate of businesses are frequent due to | | | | available resources. Investing in phony deals drains |
| the fact that some provisions are not adequately | | | | their capital and in most cases hands them over to |
| provided for thus snuffing out life from such | | | | law enforcement agencies there by crippling their |
| businesses. | | | | businesses. |
| This high mortality rate s caused by so many factors | | | | - Unavailability of a compliant mentor and workable |
| which includes- | | | | business plan. |
| - Financial predators. | | | | Many new entrepreneurs engage the mentorship of |
| These are people, group of people and organizations | | | | verbal achievers. These brand of mentors are not |
| who feed parasitically on business ventures. These | | | | conversant with the real demands of such businesses |
| people are around us in all sphere of daily contacts. | | | | nor are they knowledgeable in the new trends. Many |
| Either by mistake or ignorance, they eat up deep into | | | | of them are half failures of yesteryears and those |
| a business finances. Their traps are well laid that one | | | | living on relations largess but very vocal and well |
| slips into it regularly. These predators are government | | | | packaged. They do not have things on the ground to |
| agencies via taxation, investment brokers, banks and | | | | show for wealth or enterprising prowess. Secondly, |
| bankers, legal advisers, relations and marriage | | | | many do jump into businesses without a master plan |
| partners. | | | | based on current dynamic research. When these |
| - Financial illiteracy. | | | | people are faced with great challenges, they cannot |
| Many start ups and up coming entrepreneurs do not | | | | find answers to them. The only option left will be to |
| have enough financial education. Basically they are not | | | | wind up. |
| aware of the difference between "return of | | | | As much as the mortality rates are high, the focused |
| investment" and "returns on investment", assets and | | | | and positive minded few can only but join the |
| liabilities, depreciation, inflation rate nor do they know | | | | successful 1%. Preparation prevents poor |
| how to figure out facts from figures on a sheet of | | | | performance. |
| financial document. Also, many are not conversant | | | | |