Why Small Businesses Fail (or Fail to Thrive)

Tammy, an experienced and talented gardener, he called me to talk about what they need to know the necessity of its own florist and landscaping business to start. That was in horticulture for 10 years and was sent to the incredible work of flowers and plants - one of the best. She also had great design skills and good customer service skills. But she had little experience with business experience and less independence.

Discover why small businesses do a research project was smart for her, because he helped to discover their own weaknesses and begin to build a fort before investing in their own businesses. That  s no secret that fail the vast majority of small businesses in the first five years. The question is: Why can not and what I can do to avoid problems in my own business?
As we speak, we are unable to analyze some of the most common reasons why small businesses. Here are 14 important reasons to help you understand why your company can grow and prosper. Some refer to learning skills, comfortable working to get other personal preferences, habits, beliefs and self-sabotage, the change is not so easy to work with coaches or other self-development.

1st time has a deal for a hobby, just because you like something does not mean you must become a business. Often companies do not because the owner feels their passion is shared by others. Research your business idea and make sure that  s feasible.

2. Poor planning : Yes, you must have a business plan. It can be a simple three-page plan or a plan of 40 large pages. The point is, that  looking at all aspects of their business and are prepared to deal with problems when they occur. Your business plan helps you focus your goals and vision, and make plans for their achievement. And not to intervene - back and review your business plan each year.

3. Emotion Business: Entrepreneurs often inspire new ideas, but are unable to determine the location, whether   true potential  and / or implemented. Test every new idea against your business plan and mission before deciding whether or not to apply, and you wonder, do I have time and knowledge into practice?

4. Putting all your eggs in one basket: Often small business owners have a single product, service or a major customer. They cling to one thing because it brings a good performance. But what if one thing be? Diversity and diversification to mitigate the ebb and flow of the tides of the economy.

5. Poor records and financial controls: Yes, you have to keep financial records and business, you must report income and expenses every month and have to declare taxes and other business documents. If you do not know how to do this or that, get help from someone who does.

6. Lack of experience in managing a business or industry you write: There are so many hats that have to dress, marketing and sales to manage a business efficiently. In addition, you must understand your industry, the ability to market their products and services and trends to offer the industry. If you do not know about these basic skills, no self-education. Talk to others who are successful, speak to their own market-leading companies, get a book, find a site, take a bus, do your homework. And keep the rise of entrepreneurial skills to attend classes or reading new books per year.

7. Poor money management :  must live in 1-2 years without income when begins, companies are often too slow to get off the ground. You must also create and use a realistic business plan, budget and non-constant drain business income on personal spending.

8. Wrong location : If your company is in charge of commercial areas, make sure you are comfortable for customers, and about its suppliers and employees.

9. Competition : Customers go where they can find the best products and services. It is important to know who your competitors are, what they have to offer, and that makes their products or services better.

10. Procrastination and poor time management: The postponement of tasks that do not like your company to sink faster than anything else. You can not afford to waste time on unimportant tasks while critical tasks pile up. All work should be done if you do not like (or do not have time to do), hire someone to do it for you. If you manage your time and priority skills are rusty, hire a car for small business or a class to help you.

11. Ineffective Marketing : Learn to use basic marketing concepts and make sure that the success or failure of each marketing technique that follow, then downloads that do not work.

12 Ineffective sales techniques: If you have a potential client, you should know how to promote sales. If you do not understand the basics of selling to get an education any time soon. When a sales technique does not work, try another.

13. Poor Customer Service : you have a customer, you must maintain it. There are two important points here - make sure you pay attention to what the customer wants (and how those needs can change over time), and be sure to make a quick return of phone calls and emails, gathering, problem solving mutual benefit and a nice overall performance.

14. Business Burnout: its four stores require a large investment of time, money, energy and emotion. It's easy to forget that working long hours and take a break. But in the end only makes the wear on the motivation and creativity suffers, and a pessimistic attitude prevails. They are in a position, your business and personal life balance, and much suffering. Do you plan to take their time in self-care work per week and be religious at the time of your company.

Dunn and Bradstreet recently conducted a survey and found that , 90% of small businesses that do not do that due to lack of skills and knowledge by the owner. But also did a study that over 90% of small businesses still business after five years was when they had the help of a Centre for Small Business Development (SBDC) or expert help. For a list of the SBDC in your area:
http://www.passionforbusiness.com/web-resources.htm
When Tammy and I concluded our coaching session, made a list of areas where more needs to grow, and create a work plan, the help he needed. Today is a thriving, happy is their own. You can do that too. It just takes a little planning and a closer look at the causes of success and where you may need to seek help.