Thursday, January 02, 2014
Top Reasons Why Small Businesses Fail
Most American small businesses end in failure, despite the fact that many people dream of one day running a successful small business of their own. In fact, if your dream is to have a small business that is around for 10 years or longer, you have less than a 5% of being successful. If you own or plan to own a small business of your own someday, you can avoid failure yourself by becoming aware of the major mistakes so many small businesses make. Poor location: Most small businesses exist with a physical location, which makes their location an important element of survival. The excitement and anticipation that is part of the early stages of a small business creation causes many people to jump the gun on getting started. While they should be waiting for the "right location," they instead going with whatever becomes available, neglecting the fact that they will likely remain in that location for as long as their business remains alive. Another reason people often take a poor location is because it is less expensive; but it is worth paying the extra money to be in a good location! Saving money: "Saving money" on a location is not the only way small businesses try to save money early on. Lots of small businesses hurt themselves in the long run by saving money in the present on presentation or creation. If you want people to spend money on your product or service, you need to first spend money to make it good and appealing! Name recognition: People are already familiar with the big brand names, and this is one reason why they continue to draw customers. When people know a product, they are more likely to feel comfortable using it; this means that small businesses need to do what they can to create name recognition. You can begin to stir up name recognition yourself by doing promotions, by advertising, and by creating an online presence; in fact, you can even combine all these elements together. You can certainly achieve your dream of running a small business that sticks around for a while. By learning the mistakes most small businesses make, and by making sure you avoid them, you can make this dream come true!