“My business is in trouble with debt spiraling out of control and I simply don’t have enough cash to make payments on time. I’ve read that most small business startups have problems similar to mine, but why?”
This concern is common amongst the directors, managers, and owners of small business startups in the UK, and for good reason – about 2/3 of startups fail within their first 3 years of operation. Usually the failure is brought about by a number of factors that work together synergistically to make business progression difficult. Here are the 4 most common reasons why small business startups don’t do well:
1. Inadequate PreparationStarting a successful startup is all about planning – analysing your market conditions and competition. Some of the things you’ll need to know and have planned for:
- Who is going to buy your product/service
- How many companies are providing similar offerings
- Why your company’s offerings will be more appealing
- How much your competition is charging
- What it will cost to get the business of the ground and start an advertising campaign
- How much the business will need to spend to operate on an ongoing basis
Dispatches From The Front 