According to the US Small Business Administration 50% of all small businesses fail in the first year. 95% fail in the first five years.
Business researchers report several reasons for this dramatic failure rate:
1. Too little business experience.
2. Not enough money to sufficiently run and maintain the business.
3. Lack of understanding of competition in the business sector being entered.
4. Too much money invested in the wrong type of tools and products.
5. Too much money invested in permanent fixtures versus renting fixtures until the business proves its stability.
6. Too many purchases made using credit and poor credit management.
7. Business grows too rapidly and entrepreneur does not have enough funds to meet the business expenses required by the rate of growth.
8. Slow sales.
9. Too little marketing to get the word out.
10. Too much marketing to the wrong sector of potential customers.
So, now that you know the mistakes that lead to early business failure, let’s look at the top ten tips that can help ensure your success.
1. Avoid Procrastination. Once you decide to start and grow your business, you will inherit a new set of responsibilities that are not as much fun as you anticipated. Putting off your paperwork and labor requiring tasks will eventually lead to the failure you are working to avoid.
2. Prepare yourself for the competition. Building a list of thousands of loyal customers requires that you provide the best quality of products and services … Read more...