6 reasons why new small businesses fail

There have been a lot of words written over the years explaining why businesses fail. A little research though shows it mostly boils down to 6 common factors and themes. Starting your business for the wrong reasons. Many people start businesses as a result of a change in their working lives. For instance, they may be made redundant and can’t find alternative employment so decide that they may as well work for themselves to earn some money. Others believe that working for themselves will give them more time for their hobbies or their family, if this is the case then you need to finely balance what you need to earn with the time you have available to you. Starting a business isn’t easy, and most small business owners would say that they now work harder and longer. Poor Cash Flow or Capitalisation. You need money to make money, in other words, if you don’t have enough coming in to pay your suppliers then you will soon be in trouble. You need to be certain that you have enough in the bank to tide you over for the first few months until the invoices start being paid. Your business may not reach break-even for a couple of years. Poor location. This applies equally online and offline. For retail outlets, you need to be certain that you will be able to see the footfall. There is a reason why many big stores are situated in shopping malls, it’s because the volume of passing ‘traffic’ is so great. Just because premises are cheap doesn’t mean they are appropriate and ...
Source: The Hysterectomy Association - Category: OBGYN Authors: Tags: Technology Source Type: news