Unfortunately very few start businesses make it beyond the third year. Failure is usually the number of clearly identifiable mistakes that can increase the chances of survival if the small business owner is aware.
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Small business failure, reasons for failure, closure
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Unfortunately very few start businesses make it beyond the third year. Failure is usually the number of clearly identifiable mistakes that can increase the chances of survival if the small business owner is aware.
Here are the top ten common mistakes that small businesses tend to make.
<b> Lack of market research </ b>
When a budding entrepreneur comes up with an idea for a new business he assumes because he buys such products or they all service from then on. This may be the case for everyday necessities, but for other items, this is usually not the case.
When you get started, it's important to look carefully at the market and check it:
* There is demand at a level that leads to sustainable business
• People are prepared to pay the price you need to make a decent profit
Market research on the project seems to be time consuming and pays off.
<b> Bad Record Management </ b>
Some of the people who are not born are known for being a comfortable ride in this business. Documents are too easy to ignore, but can not be postponed indefinitely.
Sales, purchases and other spending must be carefully documented so you know whether you are making a profit. Invoices are issued on time and must be tracked promptly if payment is delayed. It's all very well, that back sales can keep a poor record.
Having your paperwork in order also saves time when it comes to your accountant to make your year-end book!
<b> Lack of capital </ b>
It is easy to decide what capital equipment and accessories, machines and stocks are needed when starting off. Forget about what many new business owners have to pay for their expenses before the customer pays you, ie fund the day-to-day requirements of cash This is known as your working capital requirement.
SMEs don't fail, so there is an expense to fill these caches. If you wish, your first few months are meeting your cash needs to survive.
<b> Ineffective marketing or none </ b>
Unable to handle marketing expenses as unnecessary expenses Who can be dark like business and marketing shake.
There are many ways to promote your business on a small budget; it is fair in the case of being creative and creative. What you are doing is not to assume that people will immediately know that you are doing business.
<b> Find market changes </ b>
As a small business owner, it is very easy to get immersed in your business and not see what is happening around you at market locations Ears open to what if you keep your eyes The competition is what you want your customers to do. Don't get left behind.
<b> Owner's attitude </ b>
Attitude is everything in business. Remember that the real boss of your business is the customer. It's an operating business, but it's a good attitude to do something important. If you do this, you'll soon get rid of your customers.
<b> Spend on wrong things </ b>
Especially when you start with the cash as a role! But don't be tempted to spend it on a new car, home or just good time. If you own a successful business, you need to keep some cash to fund future growth. Business can not grow without cash so commit to business waste.
<b> Depend on a few customers </ b>
Do not fall in the trap of setting up a business just because one person says they buy from you weekly or monthly. Running a business that relies on setup and one customer is not a recipe for success. What happens after spending all your cash to set up your business, finding that other customer very soon that he has changed his mind and decided to buy elsewhere You will face closure if you can not.
Before embarking on a new venture, if you go to some other place, you still have a sufficient number of customers so that you can continue trading
<b> Growing too fast </ b>
Surprising growth is also a matter of quickness. You only have to be trained enough to take in the work you can handle. If the temptation to accept too much happens a shameful new client is an existing one.
Also, do not estimate below the rapid growth of impacts can have a burden on your management. As I mentioned earlier, the late procedure etc show the damage effect.
<b> I'm trying to do everything </ b>
Finally, the problem most small business owners have is the fact that everything falls on their boards. A limited budget means that the staff is a luxury, but recognizes that as the business grows, you can not keep doing all the tasks you become inefficient and complete all in enough detail It will come when there isn't enough time. Taking an extra pair of hands increases your cost, but how much you can do and save what you do best
Look at each mistake and make sure that you are not in these trap.
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