Introduction to SMALL BUSINESS FAILURE
Starting a small business is always a risky venture for the entrepreneur. Evidence overwhelming shows that the main reason for small business failure is inexperienced owners. Small business owners in many cases do not have the traits, experience, knowledge or vision to run a business.
Regardless of the type of business, I believe that most small businesses fail because they fail to plan. With no business plan, succession plan, or exit plan, you are destined to have significant problems in running, funding and selling your small business successfully.
Small business entrepreneurs are often unaware of the mistakes they are making until it is too late. If they understand the reasons for small business failure, they can avoid the common pitfalls. Also, if small business owners can read the signs that their business is failing, they can fix the problems in time.
This is the beginning of your journey through our Roadmap to Small Business Success (click here) aimed at Successful Small Business Entrepreneurs. More specifically, this section of the road map deals with:
- Why Do Small Businesses Fail? (read blog for more detail)
- Symptoms of Small Business Failure (read blog for more detail),
Why Do Small Businesses Fail?
Often the small business owner gets caught up in the day to day running of their business. This results in their not taking stock of how the business is performing and where they want it to go. The business owner feels that things are going well, and then is surprised when cash flow and other problems arise. The statistical odds of small business success are low, and that’s why successful small business entrepreneurs pay attention to every aspect of running a business. It’s not about feeling, it’s about planning and knowing what is going on in your business.
With a very few exceptions, small business failure is always the result of bad decisions made by the business owner. You need to know why small businesses fail and get the help you need, when you need it. Below we pin down some of the reasons why small business fail. If you can avoid these mistakes, your small business is far more likely to be around for the long run.
Here are six important reasons why small businesses fail: Read our blog for a more detailed discussion – click here!
- Making Mistakes when Starting Your Small Business,
- Small Business Management Failure,
- Lack of Direction and Strategic Planning,
- Business Failure Due to Poor Marketing and Customer Service,
- Entrepreneurial Arrogance of Small Business Owners, and
- Not Keeping Pace with Changes in Internal and External Business Environment.
Symptoms of Small Business Failure
Every small business in a downward spiral displays warning signs before it eventually dies. Successful small business entrepreneurs can read the danger signs and fix them in time. Below are 10 notable symptoms of small business failure. If you as a small business owner do not address these failure symptoms, your business will nosedive sooner or later. Read our blog to get more detail on each of the 10 Signs that Your Business is Failing – click here.
Here are the 10 Symptoms of Small Business Failure discussed in our blog:
- Rising Customer Complaints,
- Declining Sales or Sales Growth Rate,
- Losing Key or Loyal Customers,
- Cashflow Problems and Not Paying Your Bills On time,
- Lacking Customer Interaction and Not Getting Positive Feedback,
- High Turnover and Disgruntled Employees,
- Resignation of Key Employees,
- No Competition,
- Fighting Fires all the Time, and
- Nothing New in Your Business