When Enough is Enough
We’ve all had those times when we’ve driven ideas down to the ground and never saw the red flags along the way. Why are we stubborn like that? I think it might have to do with failing. The national rate of businesses that fail in America is 50% within the first 5 years according to the SBA. – We don’t want to be that stat unless we’re helping the number go down.
In his book Small Business Management, Michael Ames gives the following reasons for small business failure:
1. Lack of experience
2. Insufficient capital (money)
3. Poor location
4. Poor inventory management
5. Over-investment in fixed assets
6. Poor credit arrangements
7. Personal use of business funds
8. Unexpected growth
All of these factors are what make up a business and without proper management, your business might not work. I think a major point to be made here is when you are preparing the business for launch, give the business model a few different options. The tendency for entrepreneurs and thier ideas is to assume success or think about the hockey stick approach – It is an exciting time when you’re launching a new venture and they smartest factor to address is to find the weakness first.
