In today's business climate, if you are not as savvy or in the know, you might as well call it quits. For your business to succeed, you must know all the key areas of your business inside out. If you don't know those areas, then you must have staff that is qualified to do the work and more.
SBA statistics show that over 90% of start-up businesses fail in the first year. Why is this so? This happens for a number of reasons. Let's look at a short list:
- Business Owner's experience
- Financial situation
- External Factors
- Internal Factors
The short list above can be broken down based on the individual business owner. Looking at the list brings to mind that there might not be enough capital to operate the business prior to profit being made, that is, after gross income minus all expenses, taxes, and other financial obligations. It also brings to mind the fact that the business owner might not have prepared for the external and internal factors that can affect a business from staffing, timing, obligations, mandatory requirements, and more.
Assessing your business model, business plan, marketing plan, human resources (internal and external), and your personal and business financial position is extremely important. You need to ascertain whether you are in the right industry for your skill set, or if you need to improve your job force. This is where a personal skills assessment would certainly come in handy. This would include your skills, strengths, weaknesses, and much more. It would help you figure out whether you are in the right business or if you should be doing something else.
Access to capital is another major contributor to start-up businesses failing so quickly. You must determine if startup capital resources are a positive or negative factor. Knowing how you will gain access to capital through a variety of methods is important. This will assist you to in stay in business longer.