Why Do Small Businesses Fail?

Yesterday, I attended a seminar by a local chamber of commerce on Starting a Small Business. One of the slides presented was titled, " Why Do Businesses Fail?" The reasons resonated with me and I thought it would be worth sharing the list here:

1. Do not plan properly.


2. Do not monitor financials.


3. Do not understand pricing.


4. Do not monitor cash flow.


5. Do not borrow properly.


6. Do not manage growth.


7. Do not prepare for the unexpected.

Interestingly, the reasons were mostly about execution, specifically financials and planning. The speaker said that many small business owners really don't have a good idea about the business's financial situation. Noticeably absent from the list were do not have enthusiasm, do not have good ideas and do not work hard enough.

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This is not financial or business advice. Please consult a professional advisor.

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