Research by the U.S Small business Administration shows the following top five reasons that start-up companies fail.Make sure that your business does not fall victim to them.
Insufficient start-up capital: starting a business with too little capital is a sure recipe for failure. Experts suggest that entrepreneur have the cash equivalent of 6 months of expenses available.
Lack of managerial experience : Passion for starting a company is important, but entrepreneur
Also should have skills and experience in key business area such as cash flow management, marketing, financing, inventory control, and other.Bad location: Selecting the proper location is a key to success for many business.
Your location should be convenient for your company’s target customer.Poor inventory control: Entrepreneurs in business that carry inventory must manage it closely.
Carrying too much inventory ties up valuable cash, which can sink a new business.Lack of initial planning: there is a reason that the mantra of many small business counselors is “business plan”. Creating a comprehensive plan allows entrepreneurs to determine whether a business idea is likely to succeed and to identify the steps they must take to create a successful company.