Friday, May 15, 2015
Top Reasons Why Small Businesses Fail
Many people dream of running their own small business, but if you look at the statistics, you will find that most small businesses fail. In fact, less than 5% of small businesses are still in action just 10 years down the road from their initial startup date. 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: If you have a small business, chances are you will probably have a storefront, and location will be important. 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: Trying to save money on a location is not the only place where small businesses fail because they try to save money. Too many small businesses cut corners in the creation or presentation of their product, and they suffer the consequences. 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: One reason why big brand names continue to do well is because they are already big brand names! 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. But first, you need to understand that important steps you must take and mistakes you must avoid if you want to make it happen!