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 Are you thinking about starting a  new   company  or a  in home business?  Take a look at these small business success factors before you  start  . Take them to heart and make them part of your  business  plan.

1.  A formal  written business plan
2. Effective cost control
3. Strategic pricing of goods sold
4. Promotion of a  well planned  public image
5. Implementation of technological aids
6. Professional advice  listened to and taken to heart 
7. Reduction of small business taxes through tax planning
8.  Proper coverage when it comes to   insurance
9.  Above average   product quality
10. A killer sales department
11. Ongoing  employee  training and retention of  top  personnel
12.  Keen insight   of competition
13. Prediction and adaptability of market trends
14. Adequate working capital
15. Accurate and timely financial records
16. Strategic location
17.  Open & honest  communication with family members
18.  Choice of the correct business partner 
19. Establishment of a working relationship with a banker
20. Operation under the proper strategic legal form of business
21. Learning how to learn, school is never out for the pro

 So what is the #1 reason small businesses fail? 

 According to the Department of Commerce 8 out of 10 new  start up companies  will shut their doors in the first 5 years of operation.  Did you  understand  what you just read? – 8 out of 10 would be ENTREPRENEURS become ENTRE-MANURE in the first 5 years.

 Wow , what an alarming statistic – that so many people in pursuing the American dream will not succeed .  Why is that?

 The  most common  answers of why businesses fail include the following:

• Lack of a business plan
• Not enough working capital
• Bad Location
• Poor Management
• Taxes-and the failure to take advantage of small business tax deductions.

 Question:  Who started the business without proper planning?

Who started the business without enough working capital?

Who chose the terrible, stupid, bad location?

By the way, who was the poor management?

 Answer:  You, you, you, the  new small business   entrepreneur  , the would be super-star entrepreneur did all of that and made all those  bad  decisions .  It’s you, period.  What in the world were you thinking?

 Now don’t be too hard on yourself, most people are no better off than most of you when it comes to operating your own business .  This is hard stuff to do.

But here is the TRUE  #1  reason why most  companies  fail.

 Most small businesses are not FEASIBLE from the   beginning    . 

In other words the business could never generate enough sales, to pay for the cost of sales, to pay all the operating expenses, to pay the notes and have enough green cold hard cash left over in order to pay the owner a reasonable salary. 

That’s it in a nutshell; most small business just can’t make it  because they are not feasible to become a viable profitable operation from  very beginning  .

This entry was posted on Thursday, May 27th, 2010 at 8:16 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.