What are the major reasons for small business failure?
In his book Small Business Management (published by West Publishing Co.), Michael Ames gives us the following reasons for small business failure:
* Lack of experience
* Insufficient capital (money)
* Poor location
* Poor inventory management
* Over-investment in fixed assets
* Poor credit arrangement management
* Personal use of business funds
* Unexpected growth
Gustav Berle in The Do It Yourself Business Book (published by Wiley Co.) adds two more reasons to Michael Ames' list:
* Low sales
Do I have what it takes to own/manage a small business?
You will be your own most important employee, so an objective appraisal of your strengths and weaknesses is essential. Some questions to ask yourself are:
* Am I a self-starter?
* How well do I get along with a variety of personalities?
* How good am I at making decisions?
* Do I have the physical and emotional stamina to run a business?
* How well do I plan and organize?
* Are my attitudes and drive strong enough to maintain motivation?
* How will the business affect my family?
Try the Quiz for Small Business Success
What business should I choose?
Usually, the best business for you is the one in which you are most skilled and interested. As you review your options, you may wish to consult local experts and businesspersons about the growth potential of various businesses in your area. Matching your background with the local market will increase your chance of success.
What is SCORE?
The SCORE Association (Service Corps of Retired Executives) is a nonprofit association dedicated to entrepreneur education and the formation, growth, and success of small businesses nationwide. SCORE is a resource partner with the Small Business Administration. SCORE Association volunteers serve as "Counselors to America's Small Business." Working and retired executives and business owners donate their time and expertise as volunteer business counselors and provide confidential counseling and mentoring free of charge.
Where can I go for assistance?
The U.S. Small Business Administration has offices in nearly every major city in the country. The SBA operates the toll-free Answer Desk at 1-800-8-ASK-SBA (1- 800-827-5722) to give callers direct referral to appropriate sources of information. Sponsored by the SBA are a variety of counseling, training, and information services, including the Service Corps of Retired Executives (SCORE), Small Business Development Centers (SBDCs), and Women's Business Centers (WBCs). In addition, procurement center representatives can be found at each major military installation. More than 2,700 chambers of commerce are located throughout the country to provide additional assistance.