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Reasons for Failure . . . . . . and Success
Small Business Failure Rate 2/3rds + in the first year Source: U.S. Small Business Administration
Wrong Reasons to Start a Business “I want to make a lot of money right now” “I’m tired of working” “I want more time to spend with my family” “Business owners get to play golf a lot” “My boss is a jerk”
“The only place where success comes before work is in the dictionary” B. Smith
Right Reasons to Start a Business You love what you will be doing You are physically and mentally fit You have a positive attitude, patience, ambition, and determination Failures do not overwhelm you You thrive on independence You are a self-starter and can take charge You have honesty, integrity and deal fairly and kindly with all different types of people
Poor Management Lack of Experience Areas of Neglect Inadequate Leadership Skills Unable to make change
Good Management Recognize your areas of need and seek help Study and learn all operations; analyze, plan, organize, control Hire and train competent people Create a work climate that encourages productivity Confront change and make necessary transitions
Insufficient Capital Underestimating how much money is needed Unrealistic expectation of revenues
Financial Planning Ascertain exact starting costs Plan for “staying in business” costs Accessibility to outside funds to keep business going until it becomes self sufficient
Location Where are the customers? Where are the competitors? Community receptiveness Traffic, accessibility, parking, safety Incentive programs
Business Planning Careful, strategic planning Accurate and current information Well-informed projections for the future Table of Contents Next: The Business Plan |
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