Why Small Businesses Fail

Copyright © 2006, Chris Stirling

Success in business is never automatic. It isn't strictly based
on luck - although a little never hurts. It depends primarily on
the owner's foresight and organization. Even then, of course,
there are no guarantees.

Starting a small business is always risky, and the chance of
success is slim. According to the U.S. Small Business
Administration, over 50% of small businesses fail in the first
year and 90% fail within the first five years.

In his book Small Business Management, Michael Ames gives the
following reasons for small business failure:

1:Lack of experience
2:Insufficient capital (money)
3:Poor location
4:Poor inventory management
5:Over-investment in fixed assets
6:Poor credit arrangements
7:Personal use of business funds
8:Unexpected growth
Gustav Berle adds two more reasons in The Do It Yourself
Business Book:
9:Competition
10:Low sales

More Reasons Why Small Businesses Fail

These figures aren't meant to scare you, but to prepare you for
the rocky path ahead. Underestimating the difficulty of starting
a business is one of the biggest obstacles entrepreneurs face.
However, success can be yours if you are patient, willing to
work hard, and take all the necessary steps.

On the Upside

It's true that there are many reasons not to start your own
business. But for the right person, the advantages of business
ownership far outweigh the risks.

You will be your own boss.
Hard work and long hours directly benefit you, rather than
increasing profits for someone else.
Earning and growth potential are far greater.
A new venture is as exciting as it is risky.
Running a business provides endless challenge and opportunities
for learning.

These positive elements add together to give the entrepreneur
the best possible chance at business success. It will be many
years, perhaps decades, before we again see such a positive
environment for home business launches on the internet.

Winston Churchill said only 15 words in his commencement speech
to graduates of one of the most prestigious Universities in the
world...OXFORD University:

"CHOOSE YOUR GOALS CAREFULLY AND THEN... NEVER...NEVER...NEVER
GIVE UP UNTIL YOU REACH THEM!"

Follow that philosophy and you can't help but achieve
success...

About the author:

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Chris Stirling is the owner of Top-Work-From-Home-Directory.com His website is geared for people who are interested in finding an online work at home opportunity. If you would like to learn more visit his website at: http://www.top-work-from-home-directory.com

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