When Enough is Enough

admin — Tue, 26 May 2009 05:56:58 +0000

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.

Visionary Entrepreneur » sba

When Enough is Enough