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
Free Marketing Tools Every Small Business Marketer Should Try
Forbes
Got big plans for your small business, but only a tiny marketing budget? You're not alone. According to the Wasp Barcode Small Business Report, 42% of small businesses invest 3% or less of their revenue into marketing. But maybe that isn't such a big ...

Motley Fool
Small Businesses Are Saving Facebook
Motley Fool
The vast majority of those advertisers fall into the small and medium-sized business category. Ad spending from those small businesses is more than making up for any declines from big brand advertisers on Facebook during the first half of the year ...

and more »

Forbes
Google Can Now Predict When You Will Die...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 — Google AI can predict when you will die. Google is currently training a new artificial intelligence computer to predict whether ...

and more »

Small business calendar
Minneapolis Star Tribune
SMALL BUSINESS RESOURCES: "Find information, advisers, assistance, as well as financial sources, to further your business ideas." Registration required. 6-7:30 p.m. Free. Brooklyn Park Library, 8600 Zane Av. N., Brooklyn Park. 612-543-6225.

WAER
How A Small Business Is Handling Steel Tariffs : NPR
NPR
Scott Simon speaks to Jeff Padnos, a small business owner in Michigan, about how recent U.S. tariffs on steel and aluminum are affecting his family's scrap ...
How A Small Business Is Handling Steel TariffsKSMU Radio

all 5 news articles »

Crain's Cleveland Business
Personal view: Entrepreneurs, small business owners know nobody grows alone
Crain's Cleveland Business
In 2015, JumpStart launched a festival-style summer event called Startup Scaleup. Our idea was to bring together all the different people we work with — tech founders, investors, small business owners, corporate leaders, public sector leaders and the ...

Times of San Diego
Opinion: What I've Learned as a Small Business Owner
Times of San Diego
The best advice I have before opening a business is following something you are extremely passionate about. From a very young age, dance and music spoke to my heart and filled me with complete joy. Singing and dancing were reasons why I existed.

The Boston Globe
Salon owner Mendes receives Chamber's Small Business Award
The Boston Globe
Shellee Mendes, the secret behind Steven Tyler's iconic rock 'n' roll locks was awarded the 2018 Small Business Award by the Greater Boston Chamber of Commerce last week. Before she was giving the Aerosmith star hair extensions, Mendes was a mother ...

Small Business Trends
Facebook Tools for Video Creators Generate New Small Business Opportunities
Small Business Trends
Facebook (NASDAQ: FB) announced it is updating the tools it launched for the creator community earlier this year. They will now have new ways in which they can engage with their communities and build a business on Facebook while at the same time ...

and more »

The Verge
Supreme Court's internet sales tax ruling may be a nightmare for small businesses
The Verge
In the wake of yesterday's Supreme Court ruling, e-commerce companies are understandably both concerned and uncertain of their future. The 5-4 verdict overruled a 1992 precedent set by the case Quill v. North Dakota that only addressed mail-order ...
Small business owner says online sales tax ruling levels playing fieldWTHITV.com
Memphis small business concerned about Supreme Court ruling on sales taxFOX13 Memphis
The internet sales tax is going to pummel small businessesThe Week Magazine
CNBC -Boston Herald -Supreme Court
all 2,912 news articles »

Google News

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

Small Business Small Business