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Contributing Author: Marcelina Hardy
Running a business isn’t easy. That’s why as many as 50 percent of all small business fail within five years. Knowing the reasons why they fail can help you avoid the pitfalls that so many small business owners have suffered.
Reason #1: Building Too Big Too Fast
When most business owners start their businesses, they have many ideas they want to implement. The problem is that they implement all of these ideas in the infant stages of their business and all at the same time. What happens is that they invest too much money, without having much revenue coming in.
Reason #2: They Don’t Know What to Do
A lack of experience in business can be devastating. Researching the products and services you want to sell is important, but you also want to learn how to run a business too.
Reason #3: Bad Business Location
As part of your research, it’s also important to learn about the location of your business. Does it have good visibility? Is it around people who will need your services and products? How easy is it to find?
Reason #4: High Competition
You’ll always have competition in some way, but you want to make sure your competition won’t blow you completely out of the water. This doesn’t mean you can’t sell the same services and products as another business. It just means you need to offer something different from what your competition offers.
Reason #5: Irresponsible Use of Business Funds
Some people start to use their business funds for personal use. This means that the business suffers financially when they can’t buy the materials they need to run it effectively.
Reason #6: Too Much Growth Too Quickly
Sometimes, businesses take off quickly. While this is a benefit, it can also be a risk. When a business grows too quickly, a business owner may not be able to meet the demands of her customers, and so the business begins to suffer a poor reputation of not being able to deliver.
Reason #7: Poor Customer Service
While you may only want to offer services or products to customers, that’s not your only job when it comes to running a business. Your other job is to get your customers to like you as a person. People who like you are more likely to trust you, and then they are more likely to buy from you.
Reason #8: Economic Challenges
No one can control the economy. Many times, business owners happen to start their business right when a recession hits. Unfortunately, with a new business, money can be tight, and that means it’s much more likely to sink financially.
Reason #9: Lack of Effective Marketing
If don’t tell people about your business, people don’t know about your business. Being able to market your business effectively is important in reaching business success.
Reason #10: No Back Up Plan
It’s always good to have a Plan B when you have a business. You’ll want to think of every possible challenge that may arise, and then think of a solution for it. That way, if that situation comes up, you’ll be ready to take action.
Now that you know the 10 reasons business owners fail in the first five years, take those mistakes, and avoid them with the tips provided. The more work you put into your business, the more you’ll get out of it.
So, start working on that business of yours – you deserve it.
About the Contributing Author:
AdamsQB Solution Providers works with the QuickBooks community to offer professional software and consulting services. We are skilled at organizing and streamlining the accounting software practices to lessen overhead costs and save time. Don’t forget to follow us on Twitter or Facebook for QuickBooks updates.
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