Why Small Businesses Fail?

It is no longer news that 99% of all new business venture started all over the world fail in the first ten years. Now since the dream of every entrepreneur is to build a successful business, I have tactfully highlighted 3 major reasons why small businesses fail and how you can bulletproof your business against them. Join me as I expose these business killers:

1) Lack Of Managerial Skill: When a small business owner lacks the managerial skills required to drive the business to greater heights, the business is bound to fail. An entrepreneur that wants to succeed must be able to effectively handle the employees, cash flow, production line and so on, or better still, the business owner must be able to hire a good manager to run the business.

2) Wrong Business Decisions: This is common to everyone irrespective of your field. Sometime ago a friend of mine, after carrying out critical analysis on a particular situation came up with a decision he considered favorable. But on implementing that decision, it back fired and at the end of the day, my friend had several lawsuits dangling on his neck.

So whenever you decide on an action to be implemented on your business, consider asking friends, business partners and professionals for advice. It is going to save you the stress of cleaning up the mess resulting from wrong business decision taken.

3) Harsh Government Economic, Fiscal And Monetary Policy: Hmmmm, this is an open killer of both big and small businesses. As an entrepreneur, You must be on guard to bulletproof your business against the ever changing government fiscal and monetary policies.

Since you cannot influence or alter the government’s decisions, you must be prepared to swiftly adjust your small business to align with the government rules. This will help prevent it from being hit by the adverse effect of unfavorable government policies. Instances of such government policies and effects you must keep an eye on are tax matters, double taxation, duties and levies, inflation, exchange rates and so on.