Over 600,000 new businesses are started in the United States each year. Unfortunately, 25 percent of these new businesses will close their doors within two years and 50 percent will shut down within five years. There are many factors to consider when starting a new business.

Lack of proper funding is often blamed for new business failure, but is this reality or misconception? Venture capitalists brought us Google, Amazon, and Facebook and they have funded over 30,000 start-ups in the past ten years. Yet, only 2% went IPO. Venture capitalists control billions of dollars and funding isn’t an issue for their portfolio companies.  As a whole, this has been an industry-wide business experiment. Venture capitalists have debunked the biggest misconception about capital. Therefore, lack of funding is the scapegoat for business failures.

If we approached a new business start-up as though they were products being manufactured on a production line, and defect rates were this high, the line would be immediately shut down until the issues were identified and a solution were put in place.  Obviously, standard perceptions regarding how to begin a new business simply aren’t working. Many entrepreneurs continue to attempt to start new businesses using old, conventional methods, but the question is why?

Entrepreneurship can be one of the most difficult, yet most rewarding accomplishments anyone can experience.  Almost all business failures are caused by poor strategic preplanning and not by poor execution. The traditional method of writing a business plan as the first step to starting a business is often a mistake that usually leads to a greater risk of business failure later.

Business plans are often based upon a great deal of estimation and unsupported figures, but Concept Plans provide valid questions and answers to provide the necessary focus on successful business start-up.

It’s time for a new approach to business start-up. If today’s entrepreneurs discard those outdated conventional business plans and start with a modern concept plan, the rate of success will greatly improve.

Concept Plans:

• Let you quickly understand what you think you are doing.
• Force you to examine any critical unknowns.
• Has you scrutinize conjecture and has you test them.
• Recognize the various what-if situations that are at the very basis of the plan.

Concept Plan is concluded by establishing if a business is truly feasible, because until the concept is proven, your business remains an experimental start-up. Your efforts must be combined with several business experiments because, until your assumptions are validated by the successful implementation of the concept plan and all your unknown factors become known factors, your idea isn’t practical.

The Concept Plan takes the precision and practice of the scientific process to demonstrate how it can be applied to starting a new business. You will quickly find and accurately decide what your new business truly is. Every entrepreneur has the identical goal of building a prosperous, successful business. There’s no reason why you shouldn’t succeed.