{"id":20588,"date":"2024-12-16T16:13:49","date_gmt":"2024-12-16T16:13:49","guid":{"rendered":"https:\/\/alprofitconsult.al\/?p=20588"},"modified":"2024-12-16T17:36:37","modified_gmt":"2024-12-16T17:36:37","slug":"why-do-most-small-businesses-fail-and-how-can-this-situation-be-changed","status":"publish","type":"post","link":"https:\/\/alprofitconsult.al\/en\/pse-shumica-e-bizneseve-te-vogla-deshtojne-dhe-si-mund-te-ndryshoje-kjo-situate\/","title":{"rendered":"Why do most small businesses fail and how can this situation be changed?"},"content":{"rendered":"

Many entrepreneurs start their businesses with the dream of being independent and working for themselves. But, according to Michael Gerber<\/strong> in his famous book \u201cThe E-Myth Revisited\u201d<\/a><\/strong>, Most of these businesses fail because entrepreneurs approach business with the wrong mindset. Instead of acting as owners and managers, they get stuck in the role of technicians \u2013 skilled in a craft but lacking the necessary skills to manage and grow a sustainable business.<\/p>\n\n\n\n

In this article, we will explore Gerber's main ideas and how they can be applied to the Albanian reality. We will look at why it is essential to change how we view entrepreneurship and how to build a business that functions as a system, rather than just as a result of the owner's personal efforts.<\/p>\n\n\n\n

Why is the \u201cTechnician\u201d mindset flawed?<\/strong><\/h2>\n\n\n\n

According to Gerber, most small businesses are born out of what he calls the \u201cEntrepreneur's Illusion.\u201d A skilled technician\u2014a master baker, an excellent mechanic, or a renowned hairdresser\u2014decides to start his own business because he is so good at his craft. But this is a trap. <\/p>\n\n\n\n

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Being a master doesn't automatically make you a successful entrepreneur.<\/strong><\/p>\n<\/blockquote>\n\n\n\n

A skilled technician often thinks, \u201cI have to do everything myself.\u201d They don't delegate, organize, or create systems. Focusing on what needs to be done today (the product or service) prevents them from thinking about the future of the business. Over time, the business doesn't grow, and the owner burns themselves out from overwork.<\/p>\n\n\n\n

Example from Albanian reality<\/strong><\/h4>\n\n\n\n

A skilled mechanic in his trade opens a car repair business. He starts with loyal customers who seek out his specific work. However, he handles everything himself: repairs, customer management, finances, and parts ordering. As a result, customers begin to dwindle because he can't serve everyone. The cost of mismanagement grows, pushing the business toward bankruptcy.<\/p>\n\n\n\n

The Michael Gerber Solution: Build a Business, Not a Job<\/strong><\/h2>\n\n\n\n

One of Gerber's main ideas is that a business should function as a system<\/strong>, so it's a workplace where the owner does everything. <\/p>\n\n\n\n

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This system must be as organized and functional as to be able to operate even in the owner's absence.<\/strong><\/p>\n<\/blockquote>\n\n\n\n

Systems and Process Creation<\/strong><\/h4>\n\n\n\n

Document all your business processes: from customer service to finance management. For example, if you have a restaurant, write a manual for recipes, customer service, and reservation management. This makes it easier to train new staff and creates a consistent quality standard.<\/p>\n\n\n\n

Delegation of tasks<\/strong><\/h4>\n\n\n\n

Hire staff and delegate tasks. Don't just focus on \u201cdoing\u201d the work, but on training a team that can do it for you. If you have a car repair shop, for example, hire an employee to handle repairs and focus on the strategy for attracting new customers.<\/p>\n\n\n\n

Entrepreneurial Mindset\u201c<\/strong><\/h4>\n\n\n\n

Shift from a technician's mindset to that of a leader who develops strategies and plans for the future. Ask yourself: \u201cHow can I grow my business without always being there physically?\u201d<\/p>\n\n\n\n

Business Development and the Importance of Documentation<\/strong><\/h2>\n\n\n\n

Another key idea from Gerber is the importance of continuous business development<\/strong>. He emphasizes that a sustainable business never stops improving and adapting to the market.<\/p>\n\n\n\n

Business processes must be clearly documented, from beginning to end. Documentation creates work standards and enables the business to operate without continuous owner intervention. Meanwhile, a consistent focus on the customer guarantees high-quality experiences and consistency in service.<\/p>\n\n\n\n

The adaptation of Gerber's ideas in Albania<\/strong><\/h2>\n\n\n\n

In the Albanian reality, most small and medium-sized businesses are still highly dependent on the owner's presence and work. Entrepreneurs need to invest in technologies that help manage the business, such as accounting and inventory management software. Training staff to take on key responsibilities is vital for long-term success.<\/p>\n\n\n\n

Also, implementing effective marketing and sales strategies can help attract new customers without the need for daily intervention from the owner.<\/p>\n\n\n\n

Worrying statistics for small businesses in Albania<\/strong><\/h2>\n\n\n\n