Successful Startup 101 Magazine - Issue 5 Page 7
* National Small Business Ombudsman www.sba.gov/ombudsman .
About the Author
Sandy Glover founded The Gold Shield Agency, Inc. (A consumer reporting agency) in 2008. She brings 20 years of exemplary law enforcement experience to provide clients with results they can depend on and trust. Sandy is located in Florida but has nationwide screening services. She believes staying current with laws and trends as they apply to screening is important. When she is not working, Sandy is active in sea mammal rescue and fosters feral kittens to get them ready for "forever" homes. Please visit https://www.goldshieldli.com to learn more.
10 Reasons Why Small Businesses Fail
By Jared Mumford
Running a small business is an exciting venture that can lead to the financial freedom simple employees work their whole lives to attain. However, with the great rewards come great risks that can lead us small business owners to financial failures.
I have witnessed friends and family members pursue their own entrepreneurial dreams only to see them shattered not a year into their short-lived careers, mostly due to a number of fatal but avoidable reasons. Let’s take a look at some of them.
# 1. No Business Plan
Knowing what your business will be and how you will sell your products or services are not enough to keep it running. You need to have a business plan written out, including (but not limited to) the following:
* your short and long term goals;
* the business’ finances for labor, production equipment, etc.;
* your target markets; and
* marketing.
Having one which outlines every detail will guide your business to the right path.
# 2. Wrong Reasons
Starting a small business simply because you want to be rich can lead to an unfulfilling experience, where you will always be looking for schemes that can bring you fortune. Before you do, think first about your own interests and passions. Do you believe you can give something of value to people at large? Are you driven enough to overcome the many inevitable obstacles an entrepreneur will face?
# 3. Inefficient Management
Small business entrepreneurs usually come into their industries with little to no knowledge of handling the multiple facets of a business such as financial management, employee relations, advertising and other essential responsibilities. Educate yourself through short business and finance courses, or hire managers who have expertise in the fields where you are lacking.
# 4. Lack of Capital
Some entrepreneurs think they will be making profits for their beginning operation cycles, spending most (if not all) of their resources immediately, only to find out later that they will not have enough funds to start the succeeding cycle/s. Consider every possible cost (overhead, production, equipment, etc.) and save enough money that can be used for at least one fiscal year despite poor sales.