TEN REASONS WHY BUSINESSES FAIL
1. Underapplication
Far too many small business owners underestimate how much money they’re going to need, not merely to get the business up and running, but also to sustain it as it struggles to gain a commercial foothold.
2. Bad Cash Flow
Even businesses that move past the embryonic stage often collapse when incoming cash doesn’t at least offset expenses and other costs.
3. Inadequate Funding
Not surprisingly, this is the reason problems like capitalization and bad cash flow happen in the first place. It’s critical that you map out as comprehensive a business plan as possible, covering financial issues, marketing, growth and an array of other elements.
4. A Comprehensive Edge
Unique ideas are rare. It is critical that your business gain a toehold in some sort of singular niche that you can exploit. Be it a slightly different product or customer support that goes beyond your competitors; earmark that one element that sets your business apart.
5. Mushy Marketing
It’s essential to develop a marketing strategy not merely to identify who might come buy from you, but why. Make certain your marketing strategy sets you apart so a customer can clearly see why they would rather go to you than a competitor.
6. Inadequate Flexibility
Never forget to remain flexible. If a product isn’t quite right or a marketing campaign isn’t really flying, don’t be afraid to tinker.
7. Ignoring the Next Step
Make sure you and your people emphasize complete customer support, from doing things you don’t have to, to offering thoughtful, useful advice that goes beyond the ordinary.
8. Forgetting There's No Red 'S' on Your Chest
Don’t try to be all things to your business. If you cringe at the thought of maintaining complete books, don’t hesitate to hook up with a good bookkeeper.
9. Great Boss, Mediocre Staff
Make certain your employees are well-trained, fairly compensated and somehow share in the fire that burns in your belly.
10. Uncontrolled Growth
Ironic as it seems, but a small business that simply succeeds too quickly often pushes it self into an early grave. If your production fails to keep pace with demand or necessary expansion coincides with insufficient cash, the growth you dream about as an entrepreneur can actually threaten your business’ very existence. Again, cover foreseeable growth in your original plan and track it adequately to make certain that it never gets dangerously out of hand.