Why Small Businesses Don't Survive
Why Small Businesses Don't Survive
#1. The business lacks planning. The business is formed because an eager, ambitious, and willing entrepreneur wants to make money and get rich. Great intentions go into developing the business, however, not much planning or research is done. Being in the consulting business for more than nine years, I discovered more than 80 percent of business owners don’t have a business plan or a strategy for their business. Additionally, more than 75 percent of my Business Plan Writing and How to Start a Business workshop attendees were business owners with established businesses that were struggling and not able to grow. And, years later realized they skipped steps B through Y to get to Z. Fortunately for them, they did realize this mistake and decided to start over, getting all the in between knowledge needed to get to Z successfully.
Conversely, it is important for any business owner to know and understand their business. The mistake many of them make is hiring a consultant, friend, or family member to write their business plan. The purpose of writing a business plan is to get to know the business, product, industry, competitors, and customers. If someone else prepares your road map, how are you to know which way to go and how you’re going to get there. Their concept or vision is totally different from the business owner, so typically what happens, the plan ends up tucked away in a drawer, file cabinet, or underneath the unimportant papers in a box.
And, for those with a strategy really don’t ask themselves questions like what if the company don’t meet its sales goals; what if the product trend change how will I adapt; or what if the economy takes a turn? These are very important and real scenarios to consider. Unfortunately, they are commonly over looked and not addressed until that bridge is crossed. By that time it’s too late.
Then there are those, who, instead of seeking consultation or investing in workshops to educate themselves, they spend much time wishing and hoping for a miracle.
Often times business owners do not visualize the big picture, the scheme of things or don’t know how to execute the big picture. The big picture should include long-term financial growth planning for financial solvency, expansion, alternative solutions and strategies if plan “A” doesn’t work. A business can’t survive on hopes and dreams. It requires great leadership, management, and capital and good decision-making skills. Businesses don’t fail because they don’t work, they fail because of poor decisions.
#2. Business owners don’t have a lucrative financial portfolio in place. I’ve yet to find a small business owner with a financial portfolio or reserves in case of an emergency such as economic downturns or slow cycles. A business owner’s failure to invest in the independence of its business and rely on capital infusion from the government or other financial institutions is by far the biggest mistake. The reality of financial assistance from SBA or conventional lenders is a blurred reality (for grass-root business and most small businesses). A large number of small business owners especially the grass-root businesses do not qualify for a business loan for one reason or another. That’s reality. A business owner without a financial portfolio is more than likely to set him or herself up for trouble in the marketplace, and will not survive a healthy existence.
#3. Commitment and drive. There has to be a continuum level of commitment when owning a business. The business owner must be willing to do whatever it takes to make the business run properly and be profitable. There has to be a strong desire for success and willingness to learn how and when to change with trends, its industry, and consumer needs. From my observation, after the first or second year in business the honeymoon is over and reality kicks in. Some are willing to stay on path and fight it out, and then there are those who lose interest and stop fighting.
Now let’s talk about external reasons why small businesses don’t survive. The government, environment, and sometimes the industry are responsible for small businesses dissolving. Our government has one classification for small businesses, so when instituting a new service or program, yes it may benefit some of its targeted interest, however, on the other hand others will suffer.
In reality there are two classes of small businesses. As mentioned previously- small businesses and grass-root businesses. What constitutes a grass-root business, the mom and pop stores, the businesses that rely on community support, and home-base operators. Tax cuts, stimulus packages, credits, and lending programs do not make its way down to these businesses. Therefore, they are left unforgotten with no support other than that of local community agencies like the SBD centers, which can only do so much.
When our government change laws and policies as it relates to the business community such as union participation and NAFTA, grass-root businesses suffers most. I would like to see SBA change its classification standards and begin devising some sort of system, which would allow the needs and challenges of grass-root businesses to be addressed in a way, which they can see some benefit for their efforts of participating in the marketplace by providing goods and services to consumers.
Other Reasons Small Businesses Don’t Survive:
1. fail to revisit the business plan.
2. do not modify the business plan accordingly.
3. do not monitor and adjust financial goals quarterly.
4. have no alternative strategies.
5. fail to build significant relationships.
6. have no social responsibility.
7. don’t market.
8. failure to continue educating themselves.
9. do not know their industry, product, or customers.
10. rely on the knowledge and experience of others to run the business.
11. don’t plan for worst case scenarios.
12. don’t stick to planned budgets.
13. take success for granted.
Small businesses must learn to become more self-reliant and independent in their thinking and planning. Success is heavily depended upon the knowledge and skill-sets of the principals running the business.
For more information on creating a financial portfolio and strategies, look for my new book Where’s The Money, Big Dollars to Do Big Business Like the Big Boys.
Why Small Businesses Dont Survive - To learn more about this author, visit Connie Sparks's Website.
Like this article? Share it with your friends
What Attributes to Failure?
#1. The business lacks planning. The business is formed because an eager, ambitious, and willing entrepreneur wants to make money and get rich. Great intentions go into developing the business, however, not much planning or research is done. Being in the consulting business for more than nine years, I discovered more than 80 percent of business owners don’t have a business plan or a strategy for their business. Additionally, more than 75 percent of my Business Plan Writing and How to Start a Business workshop attendees were business owners with established businesses that were struggling and not able to grow. And, years later realized they skipped steps B through Y to get to Z. Fortunately for them, they did realize this mistake and decided to start over, getting all the in between knowledge needed to get to Z successfully.
Conversely, it is important for any business owner to know and understand their business. The mistake many of them make is hiring a consultant, friend, or family member to write their business plan. The purpose of writing a business plan is to get to know the business, product, industry, competitors, and customers. If someone else prepares your road map, how are you to know which way to go and how you’re going to get there. Their concept or vision is totally different from the business owner, so typically what happens, the plan ends up tucked away in a drawer, file cabinet, or underneath the unimportant papers in a box.
And, for those with a strategy really don’t ask themselves questions like what if the company don’t meet its sales goals; what if the product trend change how will I adapt; or what if the economy takes a turn? These are very important and real scenarios to consider. Unfortunately, they are commonly over looked and not addressed until that bridge is crossed. By that time it’s too late.
Then there are those, who, instead of seeking consultation or investing in workshops to educate themselves, they spend much time wishing and hoping for a miracle.
Often times business owners do not visualize the big picture, the scheme of things or don’t know how to execute the big picture. The big picture should include long-term financial growth planning for financial solvency, expansion, alternative solutions and strategies if plan “A” doesn’t work. A business can’t survive on hopes and dreams. It requires great leadership, management, and capital and good decision-making skills. Businesses don’t fail because they don’t work, they fail because of poor decisions.
#2. Business owners don’t have a lucrative financial portfolio in place. I’ve yet to find a small business owner with a financial portfolio or reserves in case of an emergency such as economic downturns or slow cycles. A business owner’s failure to invest in the independence of its business and rely on capital infusion from the government or other financial institutions is by far the biggest mistake. The reality of financial assistance from SBA or conventional lenders is a blurred reality (for grass-root business and most small businesses). A large number of small business owners especially the grass-root businesses do not qualify for a business loan for one reason or another. That’s reality. A business owner without a financial portfolio is more than likely to set him or herself up for trouble in the marketplace, and will not survive a healthy existence.
#3. Commitment and drive. There has to be a continuum level of commitment when owning a business. The business owner must be willing to do whatever it takes to make the business run properly and be profitable. There has to be a strong desire for success and willingness to learn how and when to change with trends, its industry, and consumer needs. From my observation, after the first or second year in business the honeymoon is over and reality kicks in. Some are willing to stay on path and fight it out, and then there are those who lose interest and stop fighting.
Now let’s talk about external reasons why small businesses don’t survive. The government, environment, and sometimes the industry are responsible for small businesses dissolving. Our government has one classification for small businesses, so when instituting a new service or program, yes it may benefit some of its targeted interest, however, on the other hand others will suffer.
In reality there are two classes of small businesses. As mentioned previously- small businesses and grass-root businesses. What constitutes a grass-root business, the mom and pop stores, the businesses that rely on community support, and home-base operators. Tax cuts, stimulus packages, credits, and lending programs do not make its way down to these businesses. Therefore, they are left unforgotten with no support other than that of local community agencies like the SBD centers, which can only do so much.
When our government change laws and policies as it relates to the business community such as union participation and NAFTA, grass-root businesses suffers most. I would like to see SBA change its classification standards and begin devising some sort of system, which would allow the needs and challenges of grass-root businesses to be addressed in a way, which they can see some benefit for their efforts of participating in the marketplace by providing goods and services to consumers.
Other Reasons Small Businesses Don’t Survive:
1. fail to revisit the business plan.
2. do not modify the business plan accordingly.
3. do not monitor and adjust financial goals quarterly.
4. have no alternative strategies.
5. fail to build significant relationships.
6. have no social responsibility.
7. don’t market.
8. failure to continue educating themselves.
9. do not know their industry, product, or customers.
10. rely on the knowledge and experience of others to run the business.
11. don’t plan for worst case scenarios.
12. don’t stick to planned budgets.
13. take success for granted.
Small businesses must learn to become more self-reliant and independent in their thinking and planning. Success is heavily depended upon the knowledge and skill-sets of the principals running the business.
For more information on creating a financial portfolio and strategies, look for my new book Where’s The Money, Big Dollars to Do Big Business Like the Big Boys.
Why Small Businesses Dont Survive - To learn more about this author, visit Connie Sparks's Website.
Like this article? Share it with your friends
 | |
 |
No article feedback found. |
| |
Leave Your Feedback |
 | |
| |||
John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
|||
Staging DivaDebra Gould, aka The Staging Diva®, is President of Six Elements Inc., an internationally recognized home staging company. Inspired by many requests from aspiring home stagers wanting to start similar businesses, Gould created the Staging Diva Home Staging Business Training Program. Gould has trained over 1000 Staging Diva Graduates worldwide to start staging businesses. Buying decorating and selling six of her own homes in four years lead to an interest in real estate staging which she turned into a career with the launch of sixelements.com in 2002. Since then she has staged hundreds of homes in addition to teaching home staging training. Gould is the author of several home staging resources including a series of popular ebooks made up of a Design Guide, Color Guide and Portfolio Guide. For more information about Debra Gould visit stagingdiva.com. - Visit Staging Diva's Website |
|||
Casey GollanCasey Gollan, Business Coaching & Mentoring Programs. Add $1 Million to $10 Million in the next 1 to 3 years. Since 1996 Casey has to added hundreds of millions of dollars to businesses. Watch a free video see client results Business Coaching website. - Visit Casey Gollan's Website |
|||
Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
|||
John AlexanderJohn has taught keyword research and SEO skills to small groups of business owners and Webmasters from over 80 different countries world wide since 2002. John is also the Director of Search Engine Academy ; Co-director of Training at Search Engine Workshops offering live, SEO Workshops with his partner SEO educator Robin Nobles, author of the very first comprehensive online search engine marketing courses at SEO Training Online and the SEO Workshop Resource Center. I look forward to hearing from you! - Visit John Alexander's Website |
|||
Cheryl MatthynssensCheryl is a life skills coach, licensed Chemical Dependency Counselor and a 20 year entrepreneur. Cheryl's dedication to achieving a life of balance led to her expanding her teaching from the simple managing of life's daily challenges to adding financial well being as well. A direct marketer with DrinkACT, she is gaining ground in the online community with her concepts of making sure business owners, entreprenuers and employees have well rounded life styles. She opened up a small affiliate site - The Balance Guide- to help others find resources for mental and emotional well being. Visit Cheryl's blog to see more of the diversity beyond business she has began offering online at www.thebalanceguide.blogspot.com - Visit Cheryl Matthynssens's Website |
|||
Jeff FosterWebBizIdeas.com is a Minneapolis website design company founded to help people start an internet business by providing them with website, business, and internet resources that help foster the growth of successful online businesses and develop innovative Internet business ideas. We specialize in internet consulting & internet marketing. - Visit Jeff Foster's Website |
|||
David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
|||
|
To learn more about the Evan Elite Author Program please contact us. | |||
 | |
|  |
Subscribe to Connie's articles
 | |
|
|  |
 | |
|
| |
 | ||||||
|
 | ||
|
||
 |
||
|
||
|
| ||
 |
| Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details. |
|
|
 |
| Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media |
|
|
 |
"Learn straight from Evan how you can Make a Full Time Income (And More) from a Website"
Click Here To Learn More |
|
|
|
|
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
|
|
|
 A Clean Desk Networking Is The Future SEO Today Small Business Financing Performance Emotional Intelligence |
|
 | ||
 |
The Top 10 GTD Times Posts
Best Posts for Productivity | |
 |
Top 50 Geek Business Blogs
Top 50 Geek Business Blogs | |
| ||
 | ||||
| ||||
|
| ||||
| ||||
|
|
|
|
|
||||||||||||
|
Email us your ideas on how to make our website more valuable! Thank you Sharon from Toronto Salsa Lessons / Classes for your suggestions to make the newsletter look like the website and profile younger entrepreneurs like Jennifer Lopez and Sean Combs!
|
|
|
