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:

How to apply for a small business loan  Simply Business knowledge
Pandemic hurts small business owner  Pine Bluff Commercial

Building Your Business for Success in 2005

It's a strange anomaly.Most people who set out to start... Read More

How to Achieve Real Success in Business: Five Breezy Tips

Achieving real success should be the goal of any good... Read More

Mattress Cleaning Business: How To Manual

A Mattress Cleaning Business might be just for you if... Read More

Arent Small Businesses Lucky?

Why? Because they have access to world class public relations... Read More

The Franchisors Heavy Load

Why are we over regulation the franchising industry, what purpose... Read More

Leveraging Business Relationships for more Profits

When should you leverage the relationship?Leveraging sometimes brings a negative... Read More

What Help is there for Veterans Starting a Business?

Some of the very qualities that attract people to the... Read More

Book Yourself Solid Key #5: Go Forward With Gusto & Articulate What You Do

Want your small business to flip instead of flop?! Statistically... Read More

A Key to Success: Be Consistent

Over the years I heard the best way to learn... Read More

Top Ten Blunders Business Owners Make

In today's marketplace the words 'job security' have become an... Read More

Employee Relations Manual Sample Outline

Most smart entrepreneurs and all large corporations have Employee Relations... Read More

Starting an Aircraft Washing Service

To wash an airplane there are many items you will... Read More

The Most Important Decision of Your Massage Business Career

Don't you find that there are so many decisions you... Read More

Small Business - Big Business...Whats the Diff?

Small Business, Big Business ? What's the Diff?Well a lot... Read More

Hard Money Lenders -- No Money Down The Easy Way

Would it help you as a real estate investor to... Read More

Expand Your Professional Organizer Business

Grow your Professional Organizer business by branching out into related... Read More

Is Your Business Making Money?

Is your business making money? Would you know?Figuring out whether... Read More

Choosing a Truck Wash Location in Nevada, Case Study

There are several well-known truck washes in the Great State... Read More

Old Data in Database Marketing Software

Database Problems in MarketingI have been working on a direct... Read More

Cash Flow: Why Chaos Equals Poor Cash Flow

Recently one of my customers told me the chaos swirling... Read More

Do You Own Your Business Or Does It Own You?

What was your aim when you went into business for... Read More

Specialty Advertising in C-Stores

It appears the mini-blimp indoor theme and concept is making... Read More

Window Cleaning Business Future Challenge With Self Cleaning Glass

Self-cleaning glass has been talked about a lot, with such... Read More

4 Areas Where Your Business is Losing Money

In my 18 years of consulting I have heard it... Read More

How to Give Informative Talks

Why should you do informative talks to smaller groups?Informative talks... Read More