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 95% fail within the first five years.
- Lack of experience
- Insufficient capital (money)
- Poor location
- Poor inventory management
- Over-investment in fixed assets
- Poor credit arrangements
- Personal use of business funds
- Unexpected growth
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.
- Do You Have What It Takes?
- What does it take to be an entrepreneur? Which personality traits make for success? Let's see if you have what it takes.
- FICTION: To be an entrepreneur you must be born that way.
- FACT: Anyone can learn to operate like an entrepreneur.
DYNAMAX BUSINESS CREDIT