Top Reasons WHY any Business Fails?
It has been said and well documented that most businesses fail before reaching 5 years of operations. Five years is a lot of time to put into anything and fail. There are a lot of reasons why small business fail and I will share those reasons with you, based on a NY Times article written by Jay Goltz , January 5,2011 @ 2:05pm. Believe me this still holds true almost 4 years later.
1. Poor research will give math blues- your not meeting the demand for product or service, price point.
2. Owners step in business for the first time believe they can be their personal stuff along ie: perfectionist, greed, self-righteous, paranoid, indignant or lack self-confidence.
3. Over expansion
4. Poor accounting- taking money out of the business to meet personal needs and no reinvesting in the business immediately. (for the first 3 yrs at least).
5.Lack of good cash-flow.
6.Operating the business like a hobby, instead of a business with you as the CEO,FFO, ADMIN….
7.Spending too much on operations rent, software, equipment, overstocking product…
8. Poor management of self lead to poor management of the business will turn lead to ….
9.No well constructed plan, no back up and no resiliency, first set back YOU QUIT!
10. Nobody wants what you are selling anymore and you did not see it coming.
Never-mind the type of business you are operating, if you don’t take care these 10 and there are others not mention surely your business will fail and gone are the valuable lessons you did not reap. Way too many start up businesses on line, and brick n mortar are struggling to stay open, competitive and relevant.
If you are in a small business owner online or offline and would like to learn more just send me an email or call 718.564.3212 and I will be happy to help you understand the medium we know as business.
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