GRANT CARDONE: These Are The Top 10 Reasons Why Businesses Fail

Grant Cardone

Photo: Grant Cardone

“Blamers, cry babies and whiners are history. It’s an eat-what-you-kill environment.”That’s Grant Cardone‘s message to businesses these days.

Cardone, a sales expert and author of The 10X Rule: The Only Difference Between Success and Failure, says that today’s managers are blaming their problems on all the wrong things.

In fact, he says, “If you have to blame something, that’s not the problem. Most management teams just over-complicate the situation. Focusing on revenue and market share tends to solve most problems, yet you will see a company spend so much time on the wrong solution.”

We recently caught up with Cardone, who shared with us his list of top 10 reasons why companies fail:

1. They attack the wrong problem

Most companies haven’t identified the right problem. You will hear the economy, competition, regulation, customers, etcetera, as the problem when one thing would have solved all that. I saw a company once lower price when they should have raised it to increase sales.

2. Management is unwilling to push people to greatness                                                                    

Leadership is too soft on their people. They believe that being nice is somehow going to make great people and a great company. Simply being good to your people does not make them happy.

And as for employees — if you don’t like your $8 an hour job and you complain about it, you’ll never move into a $10 an hour job.

3. Companies are too focused on savings           

Show me how to make money, not how to save it. Business were built to create income not based on how much money they can save.

Sears is interested in saving money right now, and that’s the wrong approach. JC Penney is taking a stand with its new pricing model. They’re doing something others haven’t done.

4. People are not inspired daily 

All organisations should have daily SHORT meetings telling the staff about what is happening, what the company is doing well and how they are succeeding. Otherwise your teams will become distracted.

Apple, for example, has meetings every single day. They’re successfully competing in a space where brick-and-mortar isn’t working, and they’re able to inspire their people that there’s a mission behind everything.

5. They do not understand that revenue is God

Every department should somehow assist in the generation of income, either directly or indirectly. At the very least they should see how their efforts are growing the top line of the company.

6. Their price point is too low 

This is a massive mistake in businesses today, and has been used in particular since the Great Recession. Companies believe incorrectly they should lower price in order to get business and be competitive when the answer is NEVER reduce price but BUILD value.

mum and pop stores are doing this. And look what happened with Groupon — that has killed some small businesses. They prostitute their price to get a new client, but they then sacrifice customer service.

7. Management doesn’t get involved with customers

Management wants other departments to engage and handle customers while they do something else they call manage. They don’t want to walk outside their ivory towers and engage. Management’s responsibility is to touch customers.

8. The company has too many meetings

When the company starts to disappoint or gets larger you will see it start to have lots of long meetings that are not followed by any actions. Meetings don’t make a company better, long meetings make them worse.

9. There’s too little leadership and too much democratic thinking

Companies are made of people and people want leadership in everything they do. People want and need leaders. Not all people need managers, but everyone needs leaders. Leaders make decisions. Leaders take control. Leaders take action and inspire the troops what they are going to die for! 

10. They resolve to compete rather than dominate 

Managers are too busy copying other companies rather than having the courage, leadership or long term planning to figuring out how they can DOMINATE their sector. This means the company will do things that no other company is willing to do.

With all that in mind, no company is perfect. They’re all going to make some of these mistakes every day. It’s about being self-aware and willing to fix the problem.

Now read a guide on what not to do when launching a startup>

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