you can do to stop the failure of your small business. Step-by-step.
Small business failure is often attributed to lack of knowledge – plain
and simple. In fact, if more small business owners were aware
of the programs and help that is available to them, you would
hardly see any businesses closing their doors for good! Unfortunately,
the “insider secrets” have remained just that:
secrets. As a result, small business failure occurs around
us every day.
The #1 Reason for Small Business Failure: Poor Decision Making
While Running the Business
Sadly, the main reason for small business failure is that
many small business owners make poor decisions that run their
business into the ground. Of course, these business owners
didn’t mean to make bad decisions. On the contrary, they
believed they were making good ones. But, because of their
lack of business knowledge, their decisions ate away their
business profits causing it to go broke. For these reasons,
it is important to gain as much business knowledge as possible
before opening your doors.
The #2 Reason for Small Business Failure: Thinking Bankruptcy
is the Answer
After watching their business slowly fall to pieces, many
small business owners believe they have no other choice but
to file for bankruptcy. This almost inevitably leads to small
business failure. Business owners mistakenly believe that they
can file for bankruptcy and still keep their business. While
this is true in theory, nine out of ten find that they eventually
have to liquidate the business when the bankruptcy hearing
is over to pay off their attorneys and other left over fees!
Ways to Avoid Small Business Failure
The best way to avoid small business failure is to get educated.
The more knowledgeable you are when going into business, the
better prepared you will be to set up an effective business
plan and to make important financial decisions. Similarly,
if you do hit a financial roadblock (which you won't if you
took the time to get educated), you will know about the many
alternatives to bankruptcy you have.
Just be sure the books you read about business options are
written by someone who has knowledge and experience in helping
small business owners keep their business financially stable.
Or, better yet, find a book authored by someone who has experience
helping business prevent filing bankruptcy. That way, you know
the techniques you use for your business are proven to be effective.
to business turnarounds and avoiding small business failure.