5 REASONS WHY SMALL BUSINESSES FAILS

 5 Reasons Why Small Businesses Fails.

There are several reasons for small business failure, but these are five of the pitfalls that can easily be tackled before it gets out of hand. Most small businesses fails because they were designed to fail from inception. Small businesses fails because they were created for the wrong reasons, started and operated by the wrong people. Small businesses fails because they were created to serve the owner and not the people. Small businesses fails because they were built to grow small. Let me explain further.

1. Designed to fail from inception: a business built without proper analysis, sound business plan to x-ray the SWOT of the company, defining the market, will surely have a slim chance to survive. It is one thing to plan, it is another thing to execute. Poor execution of a sound business plan will stunt the growth of a business.
2. Created for wrong reasons: when a business is created by an entrepreneur who wants to make a living off it, that business is an accident waiting to happen. A business should not be created for the purpose of making a living but for making a life. Businesses created to make a life are such created that can fund itself to grow with time. When an entrepreneur starts taking from the business, it is an early sign of a bleak future.
3. Started and operated by the wrong people: a business started by an entrepreneur who doesn't know jack about the business and relies on some professionals to make it succeed, will crash beyond revival; Operated by workers who have little or no passion for the business and do not see themselves in the future of the business will not stand the test of time.
4. Created to serve the owner and not the people: a business that doesn't give twice the value of the amount a customer pays is designed to make the owner grow fat and leave the customer dissatisfied. A business that sees the customers as "kings" and workers as slaves will surely lose touch, because, the way you treat your workers is the way they will inturn treat your customers. If you treat your workers as kings, then they will treat your customers as such. People should be treated with respect before principles or work ethics.
5. Built to grow small: businesses built by technicians, managers will not grow big. Because you are relevant with the technical-know-how of a business doesn't mean you can succeed in the business. To build a business to grow big, you must be a visionary leader, on-time manager and if possible an expert. One major concept that makes a great company is to build a business like you will sell it one day. Build it like you will sell the franchise. Build it as a prototype for every other ones that will be created from the prototype.