Out of the Crisis.Org

[Louis Altazan]

According to the Small Business Administration (SBA) over 50% of small businesses fail in the first five years. They also state several reasons and most are understandable. I have long been interested in why businesses that survive this five-year barrier seem to fail. Clearly in the auto repair trade the leading symptom is a lack of clients.

Actually I feel the 50% figure may be low depending on the definition of failing. SBA defines failing as closing the business. Closing is the ultimate expression of failing, but I feel there may be several other levels. For instance, a person who continues to operate a business by liquidating assets. In my opinion, another is a person who accepts much lower wages than they might earn working elsewhere.

I have known many people who have for a while succeeded and then ultimately failed in business. One characteristic I noticed in every example is an attitude toward clients. In every case, from the point of the decline until the end, there was a feeling of hostility with regard to clients. The shops I know that failed, all seemed to feel the client was someone to be guarded against, almost like an adversary.

Several years ago, I read a statement, from a distraught shop owner. I feel it clearly demonstrates this feeling.

>the people service business is a minefield;
>and only taking the utmost care with everything written, or
>verbalized, will allow us to thread our way through it on a
>daily basis.

During the same period I have seen shops grow and prosper. By contrast, a universal sense I have noticed in these shops is a feeling that they exist to serve the client. These shops are service providers on a par with their clients. There is mutual respect and cooperation, a friendly environment. People may not choose to fail, perhaps they fail to choose, with regard to their attitude?

"The most important decision we make is whether we believe we live in a friendly or hostile universe." - Albert Einstein

_________________
Louis Altazan
Owner/Manager AGCO Automotive Corporation
Baton Rouge, LA

[MattFMN]

It's a bad sign when a business looks at its clients as necessary evils. Great post, Louis. Later, Matt.

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Matt Fanslow
ASE CMAT/L1
Crag-Technologies, Inc
www.wavehook.com