KLCGroup conducted an interesting research – What Are The Most Common Problems Businesses & StartUps Experience Today, trying to figure out why 95% of small businesses fail in the first 5 years of operation and why 95% of StartUps failed at the very beginning or not even started from the idea?
The research contained questions on strategy – does the business use strategic planning and when was the last time for strategic plan to be reviewed and adjusted for the business needs. 33% of businesses reported they used planning at the very beginning on the businessstart, and 42% reviewed it for the past three months. Same time 20% of businesses has nothing planned at all – all the actions and moves made occasionally, and 20% more are only discussing all the points during the management meetings.
That’s the problem we recognized as an initial, but mostly not the problem recognized by business owners, and what is scary by some CEOs too. If you are a business owner and your CEO doesn’t know what to do next, what is the projected/expected result and what moves are leading the businesses to financial effectiveness – why do you need this CEO?