The Most Common Reasons Why Small Businesses Fail and How to Avoid it
Running a small business is hard and multiple factors come into play to make it work. Small business owners make plenty of sacrifices and endless hours to stay operational and competitive. They also need to make careful, calculated decisions that while balancing risks and opportunities. It’s a tough job. There are plenty of reasons why small businesses fail.
20% of small businesses fail in the first year and this is the reality that most business owners face when they start. Only a select few can reach 10 years of operations. So what are the reasons why small businesses fail? Understanding how and why small businesses fail will be important in safeguarding the future of your company.
Top 4 reasons why small businesses fail:
1. Financing Hurdles
Melissa Hortin “The 4 Most Common Reasons a Small Business Fails.” Mar 31, 2021
2. Inadequate Management
3. Ineffective Business Planning
4. Marketing Mishaps
No one starts a business expecting to fail and you don’t need a thick binder with countless plans in order to stay successful but having a solid business plan can help you maneuver your way around the treacherous waters of the startup world. Keeping a small business afloat in challenging times can be difficult, but extra attention to detail can help ensure that a business survives. There are many strategies that businesses can do to ensure their survival.
Silicon Harbor Business Services is based in Mount Pleasant, SC. We provide solid, practical advice to small business owners and select individuals. We work with Quickbooks Online, Quickbooks Desktop and Quickbooks Enterprise.
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