Why Most Small Businesses Fail

There have been many businesses that started with a small amount of capital that have reached success and profits relatively quickly. In the same sense, there have been many businesses that have invested a lot of startup capital and failed. So the popular opinion that most businesses fail because they do not have enough startup capital is merely a myth.

Here are some major reasons why small business startups fail…

  • Not choosing the right business model—the inability to write a business plan
  • Not having a day-to-day Action Plan to find new customers
  • Not building a business that is a turnkey business with repeat customers
  • Not developing the right systems—and not including successful business ideas
  • Not having a plan to build a company that could have significant value—which you can sell
  • Making the wrong choice in what type of business to start
  • Not implementing an integrated marketing program vs. just spending money on advertising
  • Not considering profitable work from home opportunities
  • Not having the passion to reach pre-determined goals with deadlines
  • Not building your business around a unique selling proposition
  • Over projecting sales…and under estimating costs
  • Becoming too concerned with sales volume vs. real profit
  • Lack of a focused vision and the inability to delegate in order to build a team