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Top Reasons Why Businesses Fail |
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Written by Administrator
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Fact: For small businesses, here's the top reasons why you will need MentorshipOnline's 24/7 consultants. We will show you how to avoid these pitfalls.
| | General Business Factors | - 78% - Lack of a well-developed business plan, including insufficient research on the business before starting it.
- 73% Being overly optimistic about achievable sales, money required and about what needs to be done to be successful.
- 70% Not recognizing, or ignoring, what they don't do well and not seeking help from those who do.
- 63% Insufficient relevant and applicable business experience.
| | Financial Factors | - 82% Poor cash flow management skills/poor understanding of cash flow
- 79% Starting out with too little money.
- 77% Not pricing properly - failure to include all necessary items when setting prices
| | Marketing Factors | - 64% Minimizing the importance of promoting the business properly.
- 55% Not understanding who your competition is or ignoring competition.
- 47% Too much focus and reliance on one customer/client.
| | Human Resource Factors | - 58% Inability to delegate properly - micro-managing work given to others or over delegating and abdicating important management responsibilities.
- 56% Hiring the wrong people - clones of themselves and not people with complimentary skills, or hiring friends and relatives.
| Source: Jessie Hagen, U.S. Bank
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