The important thing is not being afraid to take a chance. Remember, the greatest failure is to not try. Once you find something you love to do, be the best at doing it.
When is enough good enough?
Prior to the most recent global socioeconomic crisis, which started in August 2008 with the bankruptcy of Lehman Brothers Investment Bank.
Below Statistics provides a striking statistics prepared based on the World Bank data:
The research study conducted on the duration of the companies in Turkey based on the data collected by the World Bank demonstrate that more than 90% of the companies within the Turkish economy were established in the past 20 years and the majority of the companies in Turkey are managed by young investors and entrepreneurs, and
it has been found out that, 80% of the companies are terminated before their fifth year,
while 16% are closed down before they reach their tenth year
and the remaining 4% have an average life of 34 years.
Further positive and negative comments may be made based on these statistical data.
However, the general picture shows that the investor and entrepreneur culture concentrates on three main mistakes:
Why most small business fail in the last year?
- The main factors that cause the companies to go bankrupt or end their business activities within four years on average are as the following:
First of all, the failure of investors and entrepreneurs to establish lean business models is the primary factor restricting the life of a company with four years.
Secondly, it results from the failure of investors and entrepreneurs to display their partnership and business principles at the initial stages and the reverse reflection of the differences in opinion and conflicts among the partners that arise further in the process to the lives of the companies
The main factors that cause the companies to go bankrupt or end their business activities within nine years on average are as the following:
Firstly: The investors and entrepreneurs that are successful in establishing lean business models, do not have sufficient levels of experience, knowledge and background to manage the financial activity cycle or they are not open to training.
Secondly: Even though successful management is procured through the Lean Business Model and Financial Activity Cycle, entering a second line of business in a short period of time with faulty business models and partnership structures.
The main factors that cause the companies to go bankrupt or end their business activities within 34 years on average are as the following:
Firstly: Not having the corporate infrastructure that would manage expansion. Not being open to transformation and the management of transformation. Failing to follow the global changes in business model trends and/or distancing themselves from adjusting capabilities. Inability to create a global brand, inadequate marketing culture.
At the second degree: Inability to establish the systems and mechanisms that would transfer success to the second generations accurately. Even if there is a corporate infrastructure, second generation investors and entrepreneurs disrupting the system.
I make a conscious effort to keep things in perspective when I get burned out. It is easy to get stuck in the daily grind, but if you think about all the distance you have covered, and what lies ahead, it is much easier to feel motivated and optimistic.
Turkish economy has to develop behavior models that would add more value to the professional merchants, industrialists, businessmen and entrepreneurs in developing young investors and entrepreneurs within its own sociocultural infrastructure in accordance with the people of Anatolia and in order to reach a comprehensive and immersive economic and social ecosystem.
Socioeconomic behavior models and best practices that examine the behavior models of socioeconomic institutions within the 21st century and ensure that the use of resources is at an optimum level, have been applied together with a number of new theories. Socioeconomic corporate drifts have a rapid impact beyond the political borders within the globalized world.
Behavior models that would bring the corporate drifts to perfections have the resources to bring people to significant results, which cannot be guessed beforehand but can be developed through learning and practice apart from inherent abilities.
The behavior models that we can suggest for the Failure Stages that we made projections for the Turkish economy based on company lives:.
First Behavior Model For 1st Stage- ( First 4-5 Years )
Best behavior model that we can suggest for the micro enterprises operating within the Turkish economy that cannot reach their fifth year: is the Lean Business Model developed by Steve Blank.
Second Behavior Model For 2nd Stage – ( After 5 years To 10 Years )
Best behavior model that we can suggest for the micro enterprises operating within the Turkish economy that cannot reach their tenth year: is to employ consultants that can make an assessment related to the investors and entrepreneurs and formulate and implement solution models. As these will depend on the life cycle of the companies, they have to enter a Financial Transformation Process with the administration of a Change Management Mentor as soon as possible.
Third Behavior Model For 3rd Stage ( After Ten years to 35 Years )
Best behavior model that we can suggest for the micro enterprises operating within the Turkish economy that cannot reach their thirty fifth year: is to employ Institutionalization and Change Management Mentors that can make an assessment related to the investors and entrepreneurs and formulate and implement solution models.
As a result, by creating a high demand for Our Change Management Services and supporting the sociocultural environments, deserting the aforementioned classic, simple mistakes and habits and accurate management by forming a block of successful investor and entrepreneurs, which make up the core of “”Corporate Drifts””‘ [http://whynationsfail.com/ ], all make the building blocks that would ensure the success of Anatolian economy in the following waves.
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