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. Starting a small business is always risky, and the chance of success is slim. According to the U.S. Small Business Administration, over 50% of small businesses fail in the first year and 95% fail within the first five years.

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 figures 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.

·         Do You Have What It Takes?

·         What does it take to be an entrepreneur? Which personality traits make for success? Let's see if you have what it takes.

·         FICTION: To be an entrepreneur you must be born that way.

·         FACT: Anyone can learn to operate like an entrepreneur.

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