Why Does a Business Fail and What Can You Do to Stop It? > NetSparsh

Home
>
Small Business
>
Why Does a Business Fail and What Can You Do to Stop It?

Why Does a Business Fail and What Can You Do to Stop It?

I believe the number one reason why a business will fail is lack of planning. This can be due to various reasons, perhaps because the market research wasn't sufficiently carried out in the first place, or because the financial burden was higher than was planned for etc.

Sometimes business failure happens because the business owner is not very savvy at other aspects of the business, such as management, promotion, branding, advertising, public relations, leadership, bookkeeping, or customer follow-up etc. It is important to get the necessary training to ensure all aspects of your home business run efficiently, or to hire help to manage these other aspects.

Here are some other reasons to consider:

1. Inadequate accounting records

2. Disregarding or misinterpreting financial records

3. Not controlling costs

4. Fraud due to poor internal control

5. Pricing goods or services too low as a way of getting customers or clients

6. Lack of marketing/selling skills

7. Not carrying adequate and appropriate insurance

8. Failing to adequately train and develop employees

9. Lack of goal and business advancement planning

10. Not seeking advice or professional help when necessary.

If you know that most businesses fail because they don't bother to plan properly, what can you do to ensure this won't happen to your business?

Have your own business and marketing plan and use it every day! Review your goals on a daily basis.

Use that to-do list every day, making sure to cross off your accomplishments. Then make a fresh list every morning of what is left to do, and what other things need to be accomplished in your business/work day.

Be ready to talk about your business in every encounter you have during the day. Practice a 30 second speech about your business so you are always ready to share it with people, and make sure you ALWAYS carry business cards with you. It looks professional too.

Hire people to do the work that you are not good at, so your business doesn't fail due to your weaker points.

Have a Plan-B! Put money by for a rainy day.

Find a mentor, someone in your field that can help and encourage you with your business.

Join a small business association where you can network with others in your field of business.

Work hard and stay motivated.

You can make your business a success with the proper planning!

Michele Miller is a home-based business owner and medical transcriptionist. She is also the author of an ebook about starting a successful transcription business from home. http://www.medical-transcription-at-home.com

In The News:

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news

Forbes
Amazon Launches A Site Just For Small Businesses...And Other Small Business Tech News This Week
Forbes
Here are five things in technology that happened this past week and how they affect your business. Did you miss them? 1 — Amazon launches a small business shop. This week, Amazon launched Amazon Storefronts—a new section of its site that only lists ...

Portland Tribune
Small business, big opportunities
Portland Tribune
Small business development is central to what we do at the Portland Business Alliance. Nearly 80 percent of our 1,900 member businesses have fewer than 50 employees. At the Alliance, our small business members have a seat at the table at board ...

and more »

The Mountaineer
Small Business Center to hold free seminar, 'Choosing Your Small Business Legal Structure' Oct. 2
The Mountaineer
The Small Business Center at Haywood Community College will offer a free seminar titled, “Choosing your Small Business Legal Structure,” from 5-7 p.m., Tuesday, Oct. 2, in room 3021 at the HCC Regional High Technology Center. The speaker is Tonya ...

Business.com
How to Make the Cloud Work for Your Small Business
Business.com
The concerns small businesses have about moving to the cloud are not as big problems as you might think. There are several ways to suit the cloud to benefit even the smallest business. If you're a small business, it's tempting to dismiss cloud storage ...

Will NY City Council Finally Take Action To Save Small Businesses From Extinction?
Gothamist
As small businesses disappear from the city, and bodegas and hardware stores and music venues are supplanted by chain drugstores and bank branches, or sit vacant for months, it's worth remembering that New York City had commercial rent controls for 18 ...

CNBC
Why one small business owner says he's 'thrilled' about Trump's trade war with China and others
CNBC
"Prices are definitely going up," said small business owner Drew Greenblatt to CNBC's "On the Money" in a recent interview. The president and owner of Baltimore-based Marlin Steel, which manufactures custom steel wire basket products for clients ...
Small Business Owner Says Tariffs NecessaryBlue MauMau

all 5 news articles »

Chamber 's Small Business Series starts Wednesday
Quad-Cities Online
During the first session focused on customer relations, attendees will identify the top three to four items related branding, marketing and sales that are keep their business from growing to the next level. Through interactive coaching, attendees will ...

Money Magazine
This Business Credit Card Gives You 2% Cash Back on All Spending. Here's Why It's the Best of 2018
Money Magazine
The best reward credit cards for business owners are ones that make it easy for you to both earn and redeem cash back, and this business credit card delivers. A lot of the small-business cards offer a slate of revolving retail categories in which ...
USAA Credit Cards: Find & Apply for Credit Cards Online | USAAUSAA

all 174 news articles »

The Missoulian
Small businesses need health care
The Missoulian
Why is health care such a dirty word with some politicians? Politicians who talk out of both sides of their mouth, on one hand saying how small businesses are the engine of economic growth in Montana, and on the other hand trying to eliminate health ...

and more »

Aviation Week
Opinion: Drones Enable Small Businesses And Help Drive US Economy
Aviation Week
Drones are creating opportunities for entrepreneurs to start new small businesses and make established small businesses services more productive. In essence, these flying robotic tools are proving beneficial to the overall U.S. economy. The industry of ...

Google News

Why Does a Business Fail and What Can You Do to Stop It?

Small Business Small Business