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Why_Small_Businesses_Fail
| Why Small Businesses Fail
Success in business is never automatic. It isn't strictly based
on luck - although a little never hurts. It depends primarily on
the owner's foresight and organization. Even then, of course,
there are no guarantees.
In his book Small Business Management, Michael Ames gives the
following reasons for small business failure:
1:Lack of experience 2:Insufficient capital (money) 3:Poor
location 4:Poor inventory management 5:Over-investment in fixed
assets 6:Poor credit arrangements 7:Personal use of business
funds 8:Unexpected growth 9:Competition 10:Low sales
More Reasons Why Small Businesses Fail
These reasons aren't meant to scare you, but to prepare you for
the rocky path ahead. Underestimating the difficulty of starting
a business is one of the biggest obstacles entrepreneurs face.
However, success can be yours if you are patient, willing to
work hard, and take all the necessary steps.
On the Upside
It's true that there are many reasons not to start your own
business. But for the right person, the advantages of business
ownership far outweigh the risks.
You will be your own boss. Hard work and long hours directly
benefit you, rather than increasing profits for someone else.
Earning and growth potential are far greater.
A new venture is as exciting as it is risky. Running a business
provides endless challenge and opportunities for learning.
About the author:
Stuart Billings is a small business owner, author and investor.
Find out more about starting a business at
http://www.free-business-resources.com.
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