{"id":3514,"date":"2016-07-11T08:10:14","date_gmt":"2016-07-11T06:10:14","guid":{"rendered":"http:\/\/blog.invoiceberry.com\/?p=3514"},"modified":"2022-04-20T14:26:27","modified_gmt":"2022-04-20T12:26:27","slug":"small-business-likely-fail-fault","status":"publish","type":"post","link":"https:\/\/www.invoiceberry.com\/blog\/small-business-likely-fail-fault\/","title":{"rendered":"Your Small Business Is Likely to Fail and It’s Your Fault"},"content":{"rendered":"

Did you know that you have only a 10% chance of succeeding in your business? Well, you should if you’re planning to establish a business of your own of any size.<\/p>\n

According to Fortune<\/a>, 9 out of 10 startups fail<\/span>. And guess what’s the percentage of small business failure?<\/span><\/p>\n

The U.S. <\/span>Small Business Administration <\/span>states <\/a>that only around 70<\/span>% of small businesses will be able to survive their first two years, dropping to a 56% chance to be alive in a 5-year perspective<\/span>. It’s actually quite unsettling if you ask me.<\/span><\/p>\n

\"Running
Running a business means you always have a risk of failure.<\/figcaption><\/figure>\n

Of course, we can argue about the methods behind the statistics and the definitions of ‘failure’ and ‘closure’. But we can all\u00a0agree that the chance of not succeeding is huge, which really worries me.<\/span><\/p>\n

Honestly, do I really want to spend all that time, money and effort to be out of the business in half a\u00a0decade?<\/span><\/p>\n

Not really.\u00a0So I decided to dig deeper into the topic and do\u00a0a little bit of a research on why some small business live and grow, and why others burn to ashes.<\/span><\/p>\n

After reading and analyzing what can go wrong and how to avoid it, I ran\u00a0into some statistics that shocked me and made everything very clear.<\/span><\/p>\n

\"Do
Do research before starting a new business, large or small.<\/figcaption><\/figure>\n

According to research <\/a>from\u00a0the University of Tennessee, 46% of business failures are due to incompetence, and 30% are due to unbalanced experience or lack of managerial experience.<\/span><\/p>\n

So, basically, businesses fail because of the owners. And it’s not someone else’s fault, like strong competition or crises (which cause\u00a0only 12% of the total number of failures).<\/span><\/p>\n

The owners themselves do the initial and consecutive wrongs, helping businesses go down the pipe. It means that no matter how good your idea is, and how well you can sell it, if you’re wrong at any stage (business planning, promoting, establishing, etc.),<\/span>\u00a0one mistake will lead to another, and you’ll fail.<\/span><\/p>\n

\"Check
Check your skills first – not everyone can be a business owner.<\/figcaption><\/figure>\n

So before starting to look for any other causes, you should begin with yourself.<\/span><\/p>\n

Put all your previous judgments aside, and forget your family’s reassurances that you’re the best and can do anything in the world.<\/span><\/p>\n

The absence of personal skills, business product or service issues, inadequate business planning (or the lack thereof), ineffective marketing and failure to track finances are probably the most common reasons that lead small businesses to fail.<\/span><\/p>\n

Take a look at the most common mistakes small business owners make \u2014 and make sure you avoid them to keep your small business afloat.<\/span><\/p>\n

You Don’t Have the Personal Skills To Be A Business Owner<\/b><\/h2>\n

Have you ever considered whether you’ve got enough personal skills to run a business and to be the owner?<\/span><\/p>\n

\"Some
Some personal skills are a must.<\/figcaption><\/figure>\n

You must have at least the following personal skills <\/a>to become a successful entrepreneur<\/span>:<\/span><\/p>\n